Addressing Challenges

I. Low Wages

Since the year 2000, our nation has witnessed a significant growth of 120% in real GDP. Despite this notable economic expansion, the average real wages have seen a modest increase of only 4%, highlighting a substantial 30-fold disparity. This disparity underscores a systemic challenge where business-generated profits are not equitably distributed to the workforce. The resultant perception of relative deprivation, combined with a pessimistic outlook for the future, has prompted the younger generation to adopt a "lying flat" mindset. This phenomenon has, in turn, given rise to issues such as extended working hours, unattainable housing, and subsequently, diminishing marriage and birth rates, contributing to the interconnected challenges of an aging population.

II. Long Working Hours

In 2022, Taiwanese labor recorded the 6th highest average total working hours globally at 2008 hours annually, trailing behind Colombia (2381 hours), Mexico (2335 hours), Singapore (2293 hours), Costa Rica (2242 hours), and Chile (2026 hours). Notably, Taiwan surpasses neighboring Japan (1626 hours) and South Korea (1904 hours) in this aspect.

Furthermore, while European workers typically enjoy a minimum of 20 days of annual leave and Korean workers are granted 15 days starting from their first year, entry-level Taiwanese workers face a substantial disparity in vacation days. The combination of extended working hours and limited vacation time not only results in overwork but also significantly restricts the family time available to laborers. This contributes to broader issues such as sub-replacement fertility and workplace gender inequality.

III. Insolvency Threat to Labor Insurance Annuity

The Labor Insurance system, which serves as a safety net for worker retirement and labor security, is facing a crisis of financial imbalance. As indicated in a self-conducted actuarial report by the Ministry of Labor, the Labor Insurance Fund has operated at a deficit since 2017 and is anticipated to face insolvency by 2028. The accumulated hidden liabilities of the entire labor insurance system exceed NT$11.501 trillion. If left unresolved, this situation not only poses a threat to the retirement security for workers but also poses a risk to national security.

Solutions

1. Profitable Businesses, Increased Wages for Workers

a. Enactment of the “Minimum Wage Act,” delayed by the Tsai administration for nearly 8 years, is proposed. This involves respecting scientific data and adjusting the basic wage according to a specified formula. Listed companies are required to disclose information regarding employee compensation levels and adjustments, thereby fulfilling their corporate ESG responsibilities.

b. A proposed amendment to the “Act for Development of Small and Medium Enterprises” Article 36-2, suggests that companies are allowed to deduct a percentage from their income when raising the average salary of grassroots employees. The deduction ratio is proposed to increase from 130% to 200%.

2. Friendly Environment, Labor Rights Protection

a. Increase the number of days for family care leave for workers and provide partial salary during the leave through employment insurance.

b. Introduce "parental leave" measured in hours to address the childcare needs of workers.

c. Designate Teachers' Day and Labor Day as national holidays to avoid 'One Family Two Systems' anomalies and demonstrate respect for teachers.

d. Ensure the protection of labor rights for "atypical employment, contracting, and dispatching personnel."

e. Propose the enactment of the "Delivery Platform Practitioner Rights Protection Act."

3. Urgent Pension Reform

a. Guarantee an annual allocation of NT$100 billion, prioritizing allocation with surplus tax revenue.

b. Convene a national conference to comprehensively review the sustainability of Taiwan's social welfare system and promptly gather consensus for pension reform legislation.

c. Improve the efficiency of the labor insurance fund operation, ensure transparency, and actively address issues.

d. Allow workers to voluntarily contribute an additional 6% to their retirement, with the government providing a corresponding incentive.

e. Encourage employers to increase the retirement contribution rate, with contributions exceeding 6% eligible for government tax incentives.

f. Promote "Long-Term Care Insurance," with contributions shared among labor, capital, and the government.

4. Talent Acquisition, A Nation founded on Human Rights

a. Promote the "Strong Generation Cultural Movement" to liberate work rights and empower financially. This involves job redesigning to increase the strong generation's participation in the workforce and labor regulation adjustment to encourage them to stay in workforce.

b. Moderately open the market for foreign worker with category-based total control.

c. Strengthen country-to-country direct hiring and establish additional training institutions.

d. Allow free transfering of migrant workers within industries to reduce escaping rate and employer waiting periods.

e. Establish a migrant worker learning system.

f. Lower the " Long-term Retention of Skilled Foreign Workers Program " retention period and threshold. Qualified migrant workers can apply for permanent residency in Taiwan.

g. Enact the "New Economic Immigration Bill" to attract more international talent.