LCD panel makers promise to protect workers' rights despite unpaid leave

Taiwan's LCD panel makers, which are being hit hard by the market slump, have promised to the do their best to look after their employees in line with labor laws, despite scaling back production by having many of them take unpaid leave.

Major makers such as AU Optronics (AUO) and Chi Mei Optoelectronics (CMO) are believed to be running at less than 60% of their capacities, with some industry observers even claiming that, on average, Taiwan's panel sector will have a utilization rate of only 20-30% in November.

CMO said the company previously had 4,000 contract workers, a few hundred of whom have already left. CMO has 800 foreign workers and 20,000 local workers, and the company will give priority to protecting local employees.

CMO said currently it has no layoff plans, and any unpaid leave is being arranged in line with labor laws, which means workers will still be entitled to collect minimum wage as stipulated by the law.

AUO and Chunghwa Picture Tubes (CPT) have also remarked that they will protect employee rights in line with labor laws.

Industry sources said unpaid leave for panel makers' employees ranges from three to seven days a month.

The situation is worse upstream at component suppliers, the sources claimed as panel clients have looked to renegotiate payment terms. At some companies some employees will only work four days in November, the sources noted.