Chunghwa Telecom Responds to Union's Call for Overall Wage Increases

Rhea-AI Summary

Chunghwa Telecom (CHT) engaged in discussions with its Workers' Union on November 21 regarding salary increases amidst economic uncertainty. The company previously raised salaries by 4% in January 2022 and has implemented various employee benefits. Chunghwa's competitive compensation was highlighted, with salaries above industry peers in 2021. Despite challenging global economic conditions, Chunghwa remains committed to employee welfare, offering enhanced benefits and maintaining communication with the union to address employee concerns.

Positive

• Implemented a 4% salary increase in January 2022 and previous increases of 3-5% in 2020.
• Competitive salaries for non-managerial staff, above industry peers in 2021.
• Established 9 workplace teaching and care centers for employee support.
• Increased maternity leave from 7 to 10 days and maternity pension for 2023 to NTD 20,000.
• Recognized by Forbes as sixth in establishing a female-friendly workplace.

Negative

• Economic uncertainties and geopolitical tensions may impact operational performance in 2023.

TAIPEI, Nov. 30, 2022 /PRNewswire/ -- Chunghwa Telecom Co., Ltd. (TAIEX: 2412, NYSE: CHT) ("Chunghwa" or "the Company") announced that it has engaged in talks with the Chunghwa Telecom Workers' Union on November 21^st to respond to their call for comprehensive salary increases. The Company said that it will take the economic uncertainty and the actual operating results of year 2022 into consideration in deciding the extent of wage increases and make an announcement at a proper time.

Chunghwa Telecom stated that the Company has its internal policies for annual salary increments on the basis of individual assessment, and carries out comprehensive wage increases from time to time based on operating performance and market conditions. In January of 2022, the Company made an announcement to raise overall salaries by 4% in response to a more challenging economic environment as well as offer a one-time encouragement bonus to staff members in recognition of staff contribution to outperforming operating results in 2021. Prior to that, the Company also raised overall salaries by 3% to 5% in 2020 for talent retention. Chunghwa said the recent salary increases had demonstrated its willingness to share operating success with employees and place great emphasis on employees' salaries and benefits.

Chunghwa further highlighted its competitive compensation scheme in the telecom industry of Taiwan. According to an analysis of the average salary of publicly traded companies published by the Taiwan Stock Exchange, the average salary of Chunghwa's non-managerial full-time staff in 2021 was ahead of its peers.  

In addition to pay scheme, Chunghwa commits to staff's welfare and offering a favorable work and family balance environment for all employees. Consequently, the Company has launched a variety of employee benefits plan over time. In 2022, the Company has offered to establish 9 workplace teaching and care centers with 16 classes in six cities in Taiwan in order to enhance mutual care at the workplace, which allow employees to look after their families while working. Moreover, the Company provides employees with more benefits than what  the government stipulates. For example, Chunghwa led by initiating a program that allows employees with children under the age of three years old to work one hour less per day. The Company has also increased paternity and maternity leave to 10 days from 7 days in which the government requires. Recently, the Company announced a raise to the maternity pension per child to NTD 20,000 in 2023, as well as a raise in the monthly subsidy to employees with children between the ages of 0-6 to NTD 1,000 per month. Due to its commitments and practices, the Company had won recognitions and awards for its pioneered initiatives during the year. Notably, "The World's Top Female-Friendly Companies 2022 Survey" released by Forbes has ranked Chunghwa Telecom the sixth leading telecom service and cable companies in the world in terms of establishing a female-friendly workplace.

"Our employees remain our most important and precious asset, and we also place great importance to the lasting relationship with our labor union. We will ensure the rights and interests of our employees are protected and we are pleased to share company profits with our employees as a result of their work contributions. Chunghwa will continue to communicate with our labor union to factor in employee demands and concerns to jointly create a prosperous future for the Company's sustainable development," Mr. Chi-Mau Shieh, Chairman and Chief Executive Officer of Chunghwa Telecom, commented.

"The global macroeconomic environment has changed materially due to the impact of pandemic, war between Russia and Ukraine, and interest rate hikes by the US Federal Reserve. We believe the global economy will continue to face challenging factors that include geopolitics, market volatility, climate abnormality, and global supply chain constraints moving forward. The Taiwan Institute of Economic Research and other notable international research institutes predict such economic headwinds will continue into the next year.  As such, Chunghwa will likely face these operational headwinds in 2023 as well. Despite a challenging domestic and global environment, we are pleased with our employee incentive efforts to motivate and reward staff while also being in compliance with our corporate governance objectives. Chunghwa will continue to pursue and practice prudent corporate social responsibility in an effort to create ever greater value for all of our stakeholders," Mr. Shieh concluded.

About Chunghwa Telecom

Chunghwa Telecom (TAIEX 2412, NYSE: CHT) ("Chunghwa" or "the Company") is Taiwan's largest integrated telecommunications services company that provides fixed-line, mobile, broadband, and internet services. The Company also provides information and communication technology services to corporate customers with its big data, information security, cloud computing and IDC capabilities, and is expanding its business into innovative technology services such as IoT, AI, etc. In recent years, Chunghwa has been actively involved in corporate social responsibility and has won domestic and international awards and recognition. For more information, please visit our website at www.cht.com.tw

Contact: Angela Tsai
Phone: +886 2 2344 5488
Email: chtir@cht.com.tw

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SOURCE Chunghwa Telecom

FAQ

What salary increases has Chunghwa Telecom (CHT) announced?

Chunghwa Telecom announced a 4% salary increase in January 2022, following previous increases of 3% to 5% in 2020.

When did Chunghwa Telecom engage with the Workers' Union regarding salary discussions?

Chunghwa Telecom engaged in discussions with the Workers' Union on November 21, 2022.

What employee benefits does Chunghwa Telecom provide?

Chunghwa Telecom provides various benefits, including enhanced maternity leave, a maternity pension, and the establishment of workplace teaching centers.

How does Chunghwa Telecom's salary compare to its peers?

Chunghwa Telecom's average salary for non-managerial staff was reported to be ahead of its peers in 2021.

What are the anticipated economic challenges for Chunghwa Telecom in 2023?

Chunghwa Telecom anticipates facing economic headwinds due to geopolitical tensions and global economic volatility.