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Top Taiwan LCD makers pare back forced unpaid leave

Post Time:Feb 10,2009Classify:Industry NewsView:341

AU (2409.TW) and Chi Mei (3009.TW), Taiwan's two biggest LCD makers, have recently pared back policies of forcing workers to take unpaid leave after receiving rush orders, sending their shares higher on Monday.

The two companies said they had brought back workers to certain production lines that recently saw surges in new orders, in response to local press reports that they had called back many workers due to rush orders from China.

At 0339 GMT, shares of AU and Chi Mei jumped 3.2 percent and 4.9 percent respectively, outpacing the main TAIEX's 1.1 percent gain.

"We have made adjustments on some production lines due to the effect from rush orders recently," Loreta Chen, a Chi Mei spokeswoman, told Reuters.

AU and Chi Mei both said they have called back many workers for production lines that have received sudden surges in orders, while unpaid leave policies are still in place for lines where orders remain weak, according to an Economic Daily report.

Both companies can only accurately forecast their needs through about April, the newspaper said.

Many manufacturers in Taiwan's export-reliant tech industries have introduced forced unpaid leave over the last half year, in a cost-saving move as orders dropped sharply and exports plummeted.

The Taiwan government is expected to report on Monday that exports fell by a record 48 percent in January alone, although the drop was magnified in part due to seasonal factors involving the timing of the lunar new year.

To help Taiwan, China pledged in December to buy $2 billion worth of Taiwanese flat screen monitors to support the industry during the global economic downturn.

That pledge came as ties between China and Taiwan warm under a China-friendly administration that took office last year.

Source: ReutersAuthor: shangyi

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