Taiwan's Labor Ministry Prioritizes Job Security Amidst US Tariff Concerns

Millions Allocated to Protect Workers from Layoffs and Wage Cuts Following US Trade Actions.

Taipei, Taiwan – The Ministry of Labor (MOL) in Taiwan is taking decisive action to shield its workforce from potential economic fallout resulting from tariffs imposed by the United States. Labor Minister Hung Sun-han (洪申翰) announced that the MOL's financial support will primarily focus on preserving employment and minimizing instances of unpaid leave within affected industries.

The MOL's comprehensive "worker support policy" is designed to proactively counter the potential for job losses and a contraction in the job market, ensuring workers are protected and preventing a setback in workforce participation. Hung shared these plans with reporters before a legislative meeting.

A substantial NT$15 billion (US$455 million) has been earmarked for this critical initiative, Hung confirmed.

To understand the immediate needs, the MOL has been actively engaging with unions and trade associations likely to face the most significant challenges due to the tariffs. This outreach allows for a clear understanding of the employment landscape within impacted companies and sectors, facilitating the development of tailored response measures to mitigate adverse effects.

The Minister's statement followed a call from Taiwan Workers' United, a coalition of worker unions, urging the government to prioritize the prevention of layoffs and the preservation of working conditions in any business support measures implemented in response to the U.S. tariffs.

During questioning from lawmakers, Minister Hung identified the sectors most vulnerable to the tariffs. These export-oriented industries include manufacturers of machinery, autoparts, plastics, petrochemicals, plumbing fixtures, nuts and bolts, fasteners, and wires and cables.

The MOL is prepared to increase funding if the U.S. introduces additional tariffs and if the repercussions spread to other sectors, Hung stated.

The MOL's employment stabilization strategy includes subsidies for workers placed on unpaid leave within companies where furloughed workers represent a certain percentage of total employees, helping cover their pay shortfalls.

Eligibility for subsidies will require approval from the "employment stabilization initiative advisory committee." The MOL plans to discuss this matter with relevant agencies and present proposals at a committee meeting, potentially as early as next week.