Identifier
Created
Classification
Origin
05TAIPEI4205
2005-10-17 08:04:00
UNCLASSIFIED
American Institute Taiwan, Taipei
Cable title:  

TAIWAN ADDRESSES FOREIGN WORKER ABUSE

Tags:  ECON ELAB PHUM SMIG TW VM ID TH PH ILO WCL 
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UNCLAS SECTION 01 OF 04 TAIPEI 004205 

SIPDIS

PLEASE PASS AIT/W
STATE FOR EAP/RSP/TC, DRL, G/TIP

E.O. 12958: N/A
TAGS: ECON ELAB PHUM SMIG TW VM ID TH PH ILO WCL
SUBJECT: TAIWAN ADDRESSES FOREIGN WORKER ABUSE

REF A) TAIPEI 03525 B) TAIPEI 03793 C) TAIPEI 03856 D)
TAIPEI 03196 E) TAIPEI 03197

UNCLAS SECTION 01 OF 04 TAIPEI 004205

SIPDIS

PLEASE PASS AIT/W
STATE FOR EAP/RSP/TC, DRL, G/TIP

E.O. 12958: N/A
TAGS: ECON ELAB PHUM SMIG TW VM ID TH PH ILO WCL
SUBJECT: TAIWAN ADDRESSES FOREIGN WORKER ABUSE

REF A) TAIPEI 03525 B) TAIPEI 03793 C) TAIPEI 03856 D)
TAIPEI 03196 E) TAIPEI 03197


1. Summary: The Thai labor riots (ref A, B and C) have
highlighted the need for changes in Taiwan's treatment of
foreign workers. NGOs report that Taiwan employers are able
to mistreat foreign workers because of inadequate laws.
Mistreatment includes high broker fees, labor trafficking,
and arbitrary deportations. Almost half of the foreign
workers are not covered by Taiwan's labor laws. NGOs
believe the Taiwan authorities have taken a business-as-
usual approach now that the media are no longer focused on
the Thai worker riots. Officials at the Council of Labor
Affairs (CLA) assert that substantial progress has been made
in addressing the concerns of foreign workers. CLA hopes to
lower broker fees and prevent foreign workers from being
deported without just cause. End Summary.

Background on Foreign Laborers in Taiwan
-------------- --------------


2. There are a total of 314,000 foreign workers in Taiwan.
They are composed of approximately 90,000 each from Vietnam,
Thailand and the Philippines, 20,000 from Indonesia and less
than a hundred from Mongolia. The maximum amount of time
they can work in Taiwan is six years. However, after the
first three years they must return to their own country and
re-apply for a second three year tour.


3. A little less than half of the foreign worker population
(approximately 126,700) is engaged in domestic care. They
work in private homes taking care of the elderly or
assisting in childcare. The other half are involved in
labor-intensive work such as construction. Currently, the
largest employer of foreign workers is the Formosa Plastics
Corporation, which employs over 5,000 construction workers
in building a new oil refinery in Mailiao, Taiwan.


4. Foreign workers are drawn to Taiwan because the minimum
wage of approximately US$500 (NT$15,840) a month is one of

the highest wages in Asia. Foreign workers can make more
money doing the same work in Taiwan than they could in Hong
Kong or Singapore, two other popular destinations. While,
domestic care workers typically receive the minimum wage,
other types of workers receive even higher wages. In
construction, wages for skilled labor such as welding
approaches US$1,000 (NT$30,000) a month.

Foreign labor's contribution to Taiwan's economy
-------------- --------------


5. Foreign workers make substantial contributions to
Taiwan. Because Taiwan's population growth is one of the
lowest in Asia at 1.24% (examined in ref D and E),Taiwan is
facing a labor shortage. By bringing in foreign workers,
Taiwan can keep labor costs low for labor-intensive
industries and help control inflation.


6. Foreign workers also help maintain Taiwan's social
welfare programs. Many foreign workers care for the
elderly, which helps keep healthcare costs down for the
government. In addition, the 314,000 foreign workers are
required to contribute to the national health insurance
program and pay income taxes while they work in Taiwan. The
contributions are a boon for the social safety net since few
foreign workers will claim any benefits in the short time
they are in Taiwan.

NGOs list four major issues that Taiwan government has not
addressed
-------------- --------------


7. Despite their contributions to Taiwan's prosperity, NGOs
have long claimed that the Taiwan government turns a blind
eye to the problems that foreign workers face. There are
four major issues that NGOs have told AIT need to be
addressed. First, high broker fees turn workers into
indentured servants when they arrive in Taiwan. Because of
high demand and quota limits, brokers are able to charge
high fees for a job in Taiwan. For example, a domestic
caretaker over the course of 3 years will pay on average
US$4,000 to US$8,000 for a job in Taiwan. Most workers
expect to save almost nothing in the first 1-2 years to pay
off the debt to the broker. NGOs report that domestic
caretakers receive approximately US$100 (NT3,000) to US$200
(NT6,000) a month after deductions.

High Broker Fees
--------------

8. Foreign workers can justify the high fees because once
they pay off the broker fee after two years, they can keep
most of their salary in their final year in Taiwan. Even
housekeepers that are paid the minimum wage may save
US$4,000 after three years. However, this does not always
work out as planned. Some dishonest brokers disguise
additional fees in the form of loans. Some workers may be
sent home by their employers before they have repaid their
broker fee. As one foreign worker living at the government
shelter said to AIT ECONOFF "it's a gamble. But what do I
have to lose? If I stay in the Philippines there is no job
for me. At least I have a chance in Taiwan."

Bait & Switch
--------------

9. Second, labor trafficking has not been adequately
addressed by the Taiwan government. NGOs report many cases
where foreign workers, hired as domestic caretakers, are
actually sent to factories after they arrive in Taiwan.
Employers use this method to circumvent quotas on hiring
foreign workers since domestic caretakers are exempted from
quota restrictions. The foreign workers are required to
work in factories but then paid the same wages as a domestic
caretaker; a fraction of the prevailing wage rate for a
factory worker. Joyce Shiau, Director of the Taipei
government shelter said this is the number one reason
workers seek help at the shelter.


10. Penalties for employers involved in labor trafficking
are light. In one case, Joyce Shiau told AIT, that an
inspector discovered an employer was making his housekeeper
work in the employer's flour factory. The inspector fined
the employer US$1,000 (NT$30,000). The inspector then
returned the foreign worker to the employer's family so that
she could continue working as a housekeeper. Labor
authorities will remove an employer's right to hire domestic
caretakers only after the third offense.

No Legal Protections for Domestic Staff
--------------

11. Third, domestic caretakers are not covered by Taiwan's
labor standards law. While foreign workers in construction
are covered under Taiwan's labor laws, domestic caretakers,
who make up about half of all foreign workers, are
specifically exempt. Without any laws to protect domestic
caretakers, time off, minimum wage and working conditions
are decided by the employer. AIT ECONOFF has learned of
numerous cases where housekeepers have worked for one to two
years without any time off. To address this, NGOs have been
advocating for a Household Services Law to regulate domestic
caretakers. However, officials at CLA have not supported
the law and a commission created to write the bill could not
come to a consensus.

Deportation Problems
--------------

12. Finally, Taiwan has no rules regarding the repatriation
of foreign workers. NGOs believe that foreign workers
should have some kind of whistleblower protection if they
face illegal working conditions. Without this protection,
employers can arbitrarily deport foreign workers who raise
concerns or seek help. This was one of the contributing
factors that led to the Thai worker riots. The Thai workers
claimed that anyone who questioned their paycheck was
immediately deported. (See ref A, B and C) A worker who is
deported within the first two years may not be able to pay
back the debt incurred from broker fees.

NGOs Report on Recent Cases of Foreign Worker Abuse
-------------- --------------


13. In addition to the Thai worker riots, NGOs have
highlighted a few less widely reported cases of the foreign
worker abuse. NGOs believe that these cases show that the
Thai worker riots were not an anomaly but part of a lasting
trend. In April 2005, a broker in Tainan, Taiwan was
discovered to have raped up to thirty Vietnamese foreign
workers that he brought to Taiwan. NGOs point to the large
number of victims as evidence that many foreign workers do
not know that there are resources to help them. In July
2005, sixteen Filipino construction workers tried to stage a
strike at the Formosa Plastics Corporation oil refinery
about salary deductions. They were allegedly beaten by
guards and immediately deported. Four of them were still
injured at the time they were deported and were later
treated in Hong Kong. The case is still under investigation
by the CLA and Yunlin County Government. In February 2004,
New Party legislator Fong Hu-xiang was convicted of rape in
a case involving his Filipino maid. The case is currently
on appeal.

CLA Defends Themselves by Pointing to New Legal Aid Office
-------------- --------------


14. Officials at CLA defend their policies. CLA's Foreign
Worker Affairs Director Liao Wei-ren explained that in 2004,
Taiwan established a legal aid office that provides free
legal services to foreign workers. This office was
instrumental in bringing cases against the broker in the
Tainan incident involving the rape of Vietnamese workers.
The legal aid office was able to arrange to have all the
victims stay at government shelters and testify against the
broker. In addition, CLA has agreed to find them new jobs
if they want to stay in Taiwan. The case is still being
investigated and the broker has been jailed while awaiting
trial. In the case of legislator Fong Hu-xiang, the
housekeeper reported the case to the police and she was sent
to a government shelter until she voluntarily left for the
Philippines. The legislator was sentenced to 4 years in
prison. The case is on appeal but the legislator has been
removed from office. As for the Filipino workers at Formosa
Plastics Corporation, CLA officials admitted that the
workers should not have been immediately deported back to
Philippines. An investigation is still pending.

CLA has two new plans: Separate Processing at Airport and
Bilateral Agreements
-------------- --------------

15. In reference to the Filipino worker case, Liao admitted
that employers have deported employees without cause. To
address the deportation problem, Liao said that the CLA is
planning to build a separate waiting area for foreign
workers at the airport. No one except foreign workers will
be allowed into the waiting area. Foreign workers who
arrive in Taiwan will be given pamphlets in their own
language detailing their rights in the waiting area. On
departure the foreign workers will be allowed to report any
illegal activity and be given the option to stay in a
government shelter if they believe they are being deported
without cause.


16. To address the issue of high broker fees, CLA is
negotiating a bilateral agreement with the Philippine
government to allow Filipino workers to apply directly to
CLA if they want to return to Taiwan. Currently, foreign
workers who have finished three years in Taiwan need to
leave Taiwan and apply for re-entry. This requires another
broker fee. Under CLA's plan, Filipino workers can bypass
the brokers and apply directly to the CLA if they are
returning for a second three-year contract. If successful,
CLA plans to negotiate similar bilateral agreements with
other countries. With respect to the request by NGOs to
completely abolish the broker system, Liao said that
removing the broker system is not possible because the
government does not have the resources to recruit foreign
workers on its own.

Translators, Hotline, Radio Programs and Pamphlets
-------------- --------------


17. Joyce Shiau detailed all the services the Taiwan
government provides. If foreign workers call the shelter
hotline, they will be connected with a translator on staff.
Depending on the nature of the complaint they can be
directed to a shelter immediately. The CLA has established
24 offices around the island to provide counseling and other
services to foreign workers. Shiau also showed us pamphlets
in four languages with information for foreign workers. The
police are required to give the pamphlets to all foreign
workers when they apply for their Alien Resident Card. She
also showed the schedule for weekly radio programs directed
toward foreign workers in their own language.


18. However, in a telling example that Taiwan's efforts are
not as effective as officials claim, AIT ECONOFF met with
two foreign workers who were living in the government
shelter. Both said, prior to being sent to the shelter,
that they had never heard of any shelters, pamphlets,
hotlines or radio programs offered to foreign workers. They
were directed to the shelter after going to the police. One
worker claimed that she was sexually abused by her employer
and the other had been illegally employed. However, to
CLA's credit, both workers said they were impressed with the
treatment they had received. While CLA was arranging new
employment for both of them, they were free to leave and
enter the shelter and were provided free room and board.


19. Comment: The political environment in Taiwan is such
that any case of foreign worker abuse that reaches the media
receives major coverage. The resignation of CLA Chairwomen
Chen Chu over the Thai Labor riots shows that the Taiwan
authorities were embarrassed by the riot and are paying
attention to the problems foreign workers face in Taiwan.
To its credit, CLA has successfully carried out plans to
provide free legal services and operate government shelters
for foreign workers. One of the ruling party's most
energetic and effective leaders, former Executive Yuan
Secretary General Lee Yung-yuan, has succeeded Chen Chu as

SIPDIS
CLA Chairman. This offers hope that CLA will continue to
improve its performance. However, problems such as high
broker fees, arbitrary deportations and labor trafficking
means that many foreign workers continue to suffer. It
remains to be seen whether CLA's plans to have separate
waiting areas at airports and bilateral agreements to reduce
broker fees will be successful. End Comment.