The Guai Guai factory in Zhongli, which has been operating since 1968, faces a potential production halt. The company plans to relocate its facility to Hsinchu, a move that has triggered significant labor unrest. While management offered employees the option to relocate or commute alongside a 5% pay increase, the union rejected this, noting that the raise only matches recent minimum wage adjustments.
Tensions escalated following the sale of the Zhongli site to Advanced Semiconductor Engineering Inc. for NT$5.6 billion, or approximately $176.1 million. Workers are demanding a share of these proceeds, citing the company's windfall. The union is currently seeking written guarantees regarding severance packages and a monthly salary increase of NT$10,000, or $315, for those who continue their employment.
In a recent vote, 94% of the workforce supported strike action to press their demands. The Taoyuan Department of Labor is monitoring the situation and may intervene if negotiations between the company and the union do not reach a resolution. Further talks are expected to take place this week as both parties seek to address the workers' grievances regarding long-term service and compensation.
