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May 30, 2017

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Large-scale layoffs boom in July, Aug.: CLA

The China Post--The Council of Labor Affairs (CLA) stated yesterday that the number of large-scale layoffs increased significantly in July and August compared to that in the first half of 2012, according to the United Evening News.

In response to a question from The United Evening News about the number of large-scale layoffs in July and August, the CLA replied that it was still making its calculations.

The CLA further stated that the layoff of 1360 employees at ProMOS Technologies (茂德科技) is the largest in 2012.

According to CLA, ProMOS Technologies already submitted its redundancy plan on Sep. 13.

In the first half of 2012, according to the CLA's earlier data, some 76 companies in Taiwan applied for large scale layoffs, more than for the same period in 2011, at 68 companies. In the first half of 2012, 2967 people were laid off — 148 people fewer than in the first of 2011.

CLA Department of Labor Relations Director Jerry Liu (劉傳名) said that from February to June 2012 there was a decrease in the number of large scale layoffs. He said the number of companies conducting large scale layoffs in Taipei and Taichung accounted for 52 percent of total large scale layoff cases.

Taipei City Department of Labor (台北市勞工局) warned on Aug. 16 that up to that date 50 companies had submitted redundancy plans in 2012, affecting 1,498 people. These figures were similar to those that emerged during the global financial crisis.

In 2011, only 674 people in 35 companies were laid off, according to the Department of Labor.

The department said that during the financial crisis only people in the financial industry were seriously affected. However, in 2012, it was largely Taipei-based companies in the electronics industry, the services industry, and in the business of department stores that were submitting redundancy plans.

The Department of Labor also predicted that the labor market could worsen in the second half of 2012 and the first half of 2013.

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