Recent Strikes in Taiwan2012 Capital Mobility Researcher’s MeetingBangkok, ThailandSep. 26- 28, 2012Lennon Ying-Dah WongInternational Coordinator,Serve the People Association (SPA), Taoyuan, Taiwan

Strikes in Taiwan-1 Strikes had been vivid and militant in the

late 80’s and early 90’s when the independent labor movement started (“illegal” wildcat strikes mostly).

Very hard to fulfill the legal requirements before 2011 (more than ½ vote for the strike in a general meeting with more than ½ of the members personally attend).

Strikes in Taiwan-2 Rarely happened for many years. Some unions use the vote for strike as a

weapon to threaten the employer, but seldom really go on strike.

In the public sector, TRWU (railway) and CTWU (telecom) had passed the vote for strike, but TRWU never go on strike, while CTWU only organized very few members for the mobilization in the strike and failed to stop the privatization of Chunghwa Telecom.

Several former state-owned banks unions passed the vote for strike, but only one did went on strike for 4 days and thus stopped the merger of the bank by a private bank successfully.

New legal requirements for strike Enforced from May 1, 2011 in the new version of

the law. More than ½ of the members vote for strike but

not necessarily for a meeting. So it is slightly easier to full the legal requirement for strike.

“A labor union shall not call a strike and set up a picketline unless the strike has been approved by a majority of the members of the labor union via direct, secret balloting.”

(Article 54, the Settlement of Labor Disputes Law)

Hualong and Rongdian workers: victims of financialization

Hua-Long Toufen Plant Union’s Strike

Brief introduction of Hualong-1

Established in 1967 by Wong Ming-Chang was a leading company in the textile industry and one the 10th private corporation in Taiwan.

After Wong mergered 5 artificial fiber corporations and died in 1975, most of the corporation was taken over by Wang You-Zen who later another tycoon with his own kingdom.

Wong Da-Ming, Wong Yi-Ming and Wong You-Ming, sons of the old Wong, accumulated capital rapidly from the stock market and took the control of Hualong in the 80’s.

Hualong later became a group of corporation which has companies in textile, agriculture, electronic, insurance and finance.

From 1990, the Wong brothers began to manipulate the stock prices with illegal transaction in several of their own companies.

Several case exploded and were investigated: Hualong in 1990, Housheng in 1992, Hongfu in 1994.

Wong You-Ming, the director of Hualong fled to Malaysia and got a noble title (nadu) there. He’s been in exile in Malaysia and Vietnam since then.

Wong Da-Ming, who has been elected as a legislator, were jailed for a few years for the violation of stock laws. Now he is “bankrupted”, but still lives a luxurious life.

The stock of Hualong was eventually unlisted from the Taiwan stock market in 2003.

From 1997 to 2008, Hualong closed the plants in Yingge, Taoyuan, Chungli and Dayuan, moved to abroad. Toufen became the only remaining plant of Hualong in Taiwan.

Brief introduction of Hualong-2

Bitter history of workers in Hualong Toufen plant From 1997, salaries was “freezed” and never raised

since then. 1999, the yearly bonus was cancelled. 2001, wage decrease, the union striked. A woman

worker Chiu drank pesticide and suicided to protest. 2002, 20% wage decrease. 2003, 30% wage decrease. 2008, a new “production effectiveness” system was put

into force, only worker who has 130% production can get 100% salary. 50% workers can’t even get the basic salary (NT$18780, around $626 per month).

Why the Hualong workers strike? In 2011, Hualong sold the machines and lands to Fang-

An which was only a paper company set up by the network of Hualong just a few years ago.

Fang-An was established to get loans from the bank, for Hualong was already notorious and thus hard to loan any money from the bank.

Hualong demanded the workers to transfer to Fang-An and give up all the years of service in Hualong.

If the workers insisted to maintain in Hualong, the salaries would be decreased for 30%.

The over 300 workers couldn’t stand anymore and decided to start the strike on June 6, 2012.

Tip: Labor pension system in Taiwan (old system) If a worker with the year of service before July 1, 2005

can choose the new system until June 30, 2010. Any worker who retire or got laid off before fulfilling

the required year of service won’t have any retirement payment in the old system at all.

Article 53, Labor Standard Law: A worker may apply for voluntary retirement under either

of the following conditions:1.Where the worker attains the age of 55 and has worked for 15 years.2.Where the worker has worked for more than 25 years.3.Where the worker attains the age of 60 and has worked for 10 years.

What many employers do? Most of the corporations in Taiwan are of mid or

small size with the average life of less than 13 years.

Most workers in the private sectors can’t get the retirement payment (old system).

The employers often lay off workers who are near the required year of service or transfer them to another company to save the personnel expenses, just like what Hualong tried to do.

How hard is the life for the Hualong Workers?

Most of them are to mid-to-high age. Their salaries had been decreased

systematically for several times, and 50% of them couldn’t even get the basic salary (around $628 per month).

Many of them have to carry the materials as heavy as 7000 to 8000 kilograms per day.

What the union demanded?

Hualong pay the full retirement payment (to those already fulfill the required year of service to retire) or severance pay ( to those without fulfilling it).

Total amount of the money: NT$260,000,000 (around US$86,670,000).

Why the workers couldn’t get the money? According to the law, the priority of the

debt to the workers is after that for the banks.

Thus, after the company pay the other debtor (if there is money to pay), nothing would be left for the workers.

A brief diagram of the decrease of working condition in Hualong

The Union’s strategy Hualong has already shifted the center of

production to the plants in Vietnam. A remaining machine “Orchid 3” in the

plant was valuable and could be shipped to the plants in Vietnam.

The union had to protect the machine inside the plant intact to pressure the employer to pay.

Continue to guard the plant and mobilize for protest.

“100 kilometers from Toufen to Taipei is near to walk, 100 meters to the workers is far for the president”, Aug. 17

On Aug. 22, Hualong Union voted and denied the “50% proposal” given by the employer (193:148)

Three movie directors supported Hualong Union’s strike and attended the solidarity concert for the union on Aug. 26

From Aug. 26 to 27, Hualon Union and supporters blocked the gate to stop the moving out of machines

Serious confrontation to block the plant

On Sep. 6, Chen Ming-Chao, vice chair of the Miaoli County Council and good friend of Wong brothers, the namely owner of the machine announced he would demand the police to guard and move out the machines.

The union mobilized to block the gate and protect the picketline.

Police tried to guard the trucks to move out the machines, and the union tried their bet to block. Severe clash happened during the confrontation, several worker were injured. A worker even crawl under the truck and risk his life to block.

Finally the police retreated and the moving plan was failed.

Sep. 6, Hualong Union and supporters lied on the ground to block the gate and protect the picketline

Sep. 6, police claimed the union’s blocking “illegal” and evacuate them, regardless the CLA’s former statement that striking unions have the rights to protect the picketline

Sep. 6, a worker crawl under a truck and risk his life to stop it

Results of the strike On Aug. 8, Miaoli County Mayor asked the union

officers to accept the mediation: 1. Hualong would pay 60% of the retirement

payment and 80% of the severance pay. 2. The money would be divided into 3 parts

and paid in 3 months; the first payment would be transferred to workers’ account by Sep. 13, and then the union will stop the strike.

3. The remaining two payments would be paid by Fang-An in check.

Sep. 9, Union signed the agreement with Miaoli County Mayor’s mediation

Sep. 13, A Hualong worker show her bankbook with the record of the first payment from the employer

Rongdian Union’s Strike

Brief Introduction of Rongdian-1 Rongdian (or the RPTI International Ltd.) was

established by the Veterans’ Affairs Commission, Executive Yuan.

Other than VAC, several state enterprises are Rongdian’s main shareholders.

VAC is the biggest shareholder with 38% of the stock share, it has full control of Rongdian and always assign retired generals to be the chair.

The Ministry of National Defense changed the proposal after Rongdian got the bid, which delayed the construction and caused serious financial crisis for the company.

Rongdian was suddenly turned into deficit in 2011 and couldn’t pay the salaries since Feb. 2012. Now the deficit of Rongdian is NT$4,100,000,000 (around US$136,700,000).

Brief Introduction of Rongdian-2 The total amount of back wages,

retirement payment and severances pay: NT$300,000,000 (around US$10,000,000)

Rongdian couldn’t loan from the banks and is on the edge of bankruptcy.

Workers couldn’t get their back wages, retirement or severance pay, they only got a “certification of the debt” from the company.

After the negotiation meeting broke, the workers passed the vote for strike and began the strike on July 11, 2012.

“Doggie officers raise the position, workers carry the coffin (to protest)”

Rongdian workers marched towards the Executive Yuan

What we learn and what’s new in these strikes (especially Hualong)?

More struggle, more money In the beginning of the strike, Hualong insisted that they

can’t pay the workers. 7/2, Hualong promise to pay NT$25,000,000, which was

only 10% of the total money. July 12, Hualong added another NT$40,000,000, totally

25%. July 21, Hualong promised to added to 35%. Aug. 3, Miaoli County Mayor asked the union to vote for

40%, but the union denied. Aug. 21, employer promised to pay 50% and asked the

union to vote (Aug. 22, the ballot turned out to deny). After the mobilization to stop the moving out of machine,

the employers promised to pay 60% of the retirement payment and 80% of the severance pay.

Radicalized and militant protests Labor rallies and protests in Taiwan are usually peaceful. Confrontations are usually planned and even partly

“staged” with some understanding from the police to attract the media coverage.

But both Rongdian and Hualong Unions showed their desperation and confronted with the police militantly continually. Many workers and students were injured during the confrontation and some were arrested.

Rongdian workers tied up themselves together on their necks with rope on a foot bridge to protest, and Hualong workers learned from them later.

This is educational and might lead to radicalization in the future struggles.

If this happens, more workers and unions could be radicalized.

Rongdian workers tied themselves up together on their necks with a rope on a foot bridge near the Executive Yuan to protest and confront with the police.

Hualong Union learned from Rongdian Union in the protection of the pickeline

A Hualong woman worker Chen Yue-Jiao stood in front of a huge vehicle to stop the moving of the machine. It was compared with the “tankman” in Tiananmen Square in 1989 and was widely forwarded on the internet.

Massive and continued involvement from the young students In the past, more students have long-term support and

involvements in the social movements for the environment, preservation of a shelter for the Hansen’s disease (leprosy) (Losheng Leprosarium), anti-forced eviction (both in the rural and urban areas), very few in the labor movement.

But this time, students from all over Taiwan supported and struggled with Hualong Union and the Labor Party who help the union for months.

Students witness the inequality, exploitation and state oppression with their own eyes and bodies, it is a extraordinary lesson for the young activist, and will surely be a life-long memory for them.

Sep. 22, Students spoke tried to persuade the worker not to vote on the “50% plan”

After the midnight of Sep. 26, Students lied on the ground in front of a truck to stop the moving of machine from the plant

Sep. 7, supporting students hosted a press conference

Stronger general sympathy from the society The problems of unemployment, poverty, inequality, low

wage, bad working condition (especially for all kinds of precarious workers) caused by the neoliberal policies favored by the government are more aware to the public.

Some writers, scholars, singers and movie directors spoke for the strike and attended in the protests to support.

The government fail to solve the problems and help the workers to get the money stipulated by the law.

Huge coverage on the media especially in several mobilization, confrontation and concerts.

All these led to a stronger general sympathy in the public in favor of the striking unions.

Massive use of the internet and social media

Students and supporters of Hualong Union made a fan page for the public and a internal private club on FaceBook.

Hualong Union and the supporting students made announcements, mobilized, updated news and photos and debated regularly on FB.

The FB pages and independent media including Coolloud became a news center of the Hualong strike which broke the blockade of the mainstream media more or less.

Not a big victory, but the workers won something at least

For Hualong Union, the result is not really a victory, they failed to get the money stipulated by the law, not to mention the two remaining payments is not paid yet.

Yet the result is valuable and reflects the power of the workers is not strong enough yet.

Comparing to many non-union close-ups where workers couldn’t get anything, Hualong workers already got a lot, and that’s the result of the strike of the union.

For Rongdian Union, the stike continues.

Much more works to do…

And I hope the experiences in Taiwan could be helpful for all of our comrades and friends from all Asian countries.