6.1 Legislation in brief
The 3 key statutes regulating industrial relations matters in Taiwan are the Labour Union Act, the Settlement of Labour Disputes Act, and the Collective Agreement Act. In addition, there are a number of rules, regulations and notices that apply to industrial relations matters.
6.2 Role of trade unions and collective agreements
Organised labour union action has not been a major social force in Taiwan in the past. Unions are generally subject to extensive government oversight and intervention.
Currently, only one industrial or occupational union can organise in a single factory or single geographic area. A union is constituted when there are more than 30 members – all members must be employed in the same factory or work in the same area or occupation.
Note however that amendments to the Labour Union Act were passed at a meeting of the Council of Labour Affairs on 20 March 2009. At the time of writing, these amendments had not been submitted to the Legislative Yuan for ratification.
The Collective Agreements Law provides for collective bargaining but does not mandate it. All agreements must be submitted to the government for approval. Collective bargaining occurs at the enterprise level and is generally limited to large enterprises. The percentage of workers covered by a collective agreement in Taiwan is small.
6.3 Industrial action and disputes
Disputes are normally resolved through conciliation rather than the formal mediation and arbitration processes provided for in the Settlement of Labour Disputes Act. Note however that amendments to the Settlement of Labour Disputes Act were passed at a meeting of the Council of Labour Affairs on 20 March 2009. At the time of writing, these amendments had not been submitted to the Legislative Yuan for ratification.