Impending Minimum Wage Increase in Taiwan Means
Nothing for Migrant Workers
Taipei, Taiwan
3 June 2007

As we present to the Council of Labor Affairs (CLA) the initial signatories that we have gathered from more than a thousand migrant workers from the Philippines and Indonesia and from our local and other friends, we would like to reiterate our view on the impending minimum wage hike.
 
The impending minimum wage hike this coming July 1 will mean nothing for migrant workers in Taiwan if the Council of Labor Affairs pushes through with its following pronouncements.
 
That those working in homes as caretakers and domestic helpers would be exempted from the increase, as the Labor Standards Law does not cover them.
And those of other job categories will have an increase in the deduction of their board and lodging fees to NT$1500 a month.
 
In effect the minimum wage hike is just a show. For one, it excludes 46% of the migrant population who works in homes as caretakers and domestic helpers. For another it even imposes a wage cut for the rest as the increase in deduction is even a little bigger than the amount of the proposed wage hike of NT$17,280. 
 
The new CLA head, Minister Lu Tien-lin who used to be chair of the Taiwan Confederation of Trade Unions (TCTU) seems more interested in cushioning the impact of the minimum wage hike on the employers. We vividly remember that in 2001, the TCTU which he headed then was the only labor federation to agree with the CLA to impose a board and lodging fee on migrant workers from NT$2,500 – NT$4,000 and to legalize the brokers fees in the guise of monthly service fees. The former is basically a wage cut and these two together with other mandatory fees are essentially legalized extortion.
 
Because of these, the take home pay of Filipino migrant workers account for only 51 – 77% of the actual present minimum wage of NT$15,840 a month. On the other hand, Indonesians only get between 36 – 63% of the monthly wage.
 
This clearly violates the provisions of the International Labor Organization (ILO). The ILO stated in its 91st Session in 2003 that:
The Committee has on a number of occasions emphasized the importance of est ablishing an overall limit to the deductions that can be made from the wages of workers since, although in practice no difficulties exist when the deductions are small fractions of the wages, problems arise or can arise when the total amount of the various deductions is such as could either completely or virtually wipe out the wage.
 
In so me countries, the law seeks to protect the worker from excessive deductions not only by prescribing the maximum proportion of earnings which may be deducted, but also by providing that the minimum wage should remain immune from deductions.
 
Thus, there is no recourse left for us but to go to the streets and raise our voices against the CLA’s pronouncements on the minimum wage hike issue.
 
We also vow to undertake the following:
1. Continue to gather more signatories for the petition letter;
2. Conduct series of public forums and small group discussions;
3. Meet the Philippine and Indonesian representative offices in Taiwan for a dialogue and inquire about their stand on this issue;
4. Raise the issue to the international level.
 
Include Migrant Household Service Workers in the Impending Minimum Wage Hike!
No to Any Increase in the Board and Lodging and Other Fees Imposed on Other Migrant Workers!
Abolish the Levy (Employment Stabilization Fee) on Employers Hiring Migrant Household Service Workers!
Impose Mandatory Direct Hiring on Migrant Household Service Workers!
Stop the Exorbitant Mandatory Deductions on the Pay of Migrant Workers!
 

Asia Pacific Mission for Migrants (APMM)
Migrante International – Taiwan Chapter
Gabriela Women’s Party – Taiwan Chapter