DPP asks gov't to monitor state-run firms' bonus plans
The China PostBy Linger Liu--Opposition parties urged the central government to amend the budget for state-run enterprises' 2013 year-end bonuses at a legislative session yesterday.
January 10, 2013, 12:04 am TWN
Budget Proposal Procedure Should be Monitored
The Democratic Progressive Party (DPP) said that state-run firms such as Taiwan Power Co. (台電) and Taiwan Water Corp. (台水) have not made sufficient profits in recent past years and thus should not be able to hand performance bonuses to their employees.
The party said that the two companies removed the performance bonuses in their first audits and instead applied for bonus funds at the end of year and used different bonuses such as “competition bonuses” to promote employees' performance.
According to the DPP, Taipower did not request employee performance bonus funds earlier in the year, but in their final account on revenue and expenditure it proposed up to NT$4 billion for annul performance bonuses. On average, every Taipower employee is set to receive a year-end bonus of NT$160,000.
Taiwater did not propose a year-end bonus budget in 2010 or 2011, but by the end of both years it had applied for up to NT$500 million and NT$590 million for bonuses, respectively, said the DPP.
The DPP said that in 2007 CPC Corp., Taiwan (台灣中油) also did not reveal their budget proposal at the beginning of the year, instead announcing their final budget account, which ran to NT$2.62 billion, at the end of the year.
The opposition parties requested the Ministry of Economic Affairs be responsible for monitoring the state-run firms' budget proposals.
Lawmakers asked the state-run enterprises to propose their performance bonus budgets in their first audits. These audits should include all bonus details, such as amounts to be handed out as competition bonuses, they said.
The opposition legislators also requested that budget audit procedures be monitored by the Legislative Yuan.
President, Finance Minister Show Support
Speaking yesterday at the at the Kuomintang's (KMT) Central Standing Committee (CSC), President Ma Ying-jeou said that he supports Premier Sean Chen's efforts to reform the year-end bonus system.
The president said that he supports reforming the system, saying that bonuses should be based on the profit-making performance of each firm.
He also said that as bureaucracy in state-run businesses can be exceedingly deep, developing reform policies for them mandates a much more detail-oriented approach.
Finance Minister Chang Sheng-ford (張盛和) said that state-run companies have different enterprise structures compared to privately owned ones. He said that reforms should be based on the individual enterprises' characteristics and that any plans would need to have an eye on retaining talented employees.