Long hours and low pay to become the norm in Taiwan: observer

Long hours and low pay to become the norm in Taiwan: observer

Monday, Sep 23, 2013

The China Post/Asia News Network

TAIPEI – Long working hours and low pay will become the norm in Taiwan’s labour market as a result of the fast growth in atypical employment, an observer said Saturday. The number of atypical workers, including those who have only temporary employment or work on assignments by dispatch agencies, has risen to 740,000 so far this year, said Lin Yu-min, chief executive of the Chinese Personnel Executive Association (CPEA).Atypical employment used to be a segment in the labour market for students and housewives looking for part-time work, but more and more regular laborers have been unable to find suitable work and are turning to atypical employment, Lin said.

Atypical workers receive low pay at a monthly average of NT$19,038 (S$805), Lin said, stressing that the growth in atypical employment is also curbing salary levels in the regular job market.

Employers are now more prone to outsource less important work, or hire dispatched workers. In both cases, employers do not have to bear the extra labour costs that they would otherwise have to pay: labour insurance, health insurance and pensions.

Lin said employers now calculate their labour costs very carefully following recent rises in insurance costs and minimum wages, and salary levels in Taiwan have been stagnant.

Lin cited an international labour report as indicating that Taiwan’s average salary stood at NT$45,888 per month last year, the lowest of the so-called Four Little Dragons in Asia (the other three being Hong Kong, Singapore and South Korea). Taiwan’s average working hours amounted to 2,140.8 hours a year.

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Kee Koon Boon (“KB”) is the co-founder and director of HERO Investment Management which provides specialized fund management and investment advisory services to the ARCHEA Asia HERO Innovators Fund (www.heroinnovator.com), the only Asian SMID-cap tech-focused fund in the industry. KB is an internationally featured investor rooted in the principles of value investing for over a decade as a fund manager and analyst in the Asian capital markets who started his career at a boutique hedge fund in Singapore where he was with the firm since 2002 and was also part of the core investment committee in significantly outperforming the index in the 10-year-plus-old flagship Asian fund. He was also the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company. Prior to setting up the H.E.R.O. Innovators Fund, KB was the Chief Investment Officer & CEO of a Singapore Registered Fund Management Company (RFMC) where he is responsible for listed Asian equity investments. KB had taught accounting at the Singapore Management University (SMU) as a faculty member and also pioneered the 15-week course on Accounting Fraud in Asia as an official module at SMU. KB remains grateful and honored to be invited by Singapore’s financial regulator Monetary Authority of Singapore (MAS) to present to their top management team about implementing a world’s first fact-based forward-looking fraud detection framework to bring about benefits for the capital markets in Singapore and for the public and investment community. KB also served the community in sharing his insights in writing articles about value investing and corporate governance in the media that include Business Times, Straits Times, Jakarta Post, Manual of Ideas, Investopedia, TedXWallStreet. He had also presented in top investment, banking and finance conferences in America, Italy, Sydney, Cape Town, HK, China. He has trained CEOs, entrepreneurs, CFOs, management executives in business strategy & business model innovation in Singapore, HK and China.

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