Legislative Yuan Approves Draft Amendments to the Labor Union Act

07/01/2010

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On June 1, 2010, draft amendments to the Labor Union Act (the "Amendments") passed final reading at the Legislative Yuan. The highlights from the Amendments are:
l	The Amendments identified three types of unions – corporate unions, industrial unions, and craft unions. Under the Amendments, employees will be legally obligated to join the corporate union at their respective companies, but there will be no penalties for non-complying individuals.
l	The Amendments ensure the right of workers and teachers to organize and participate in labor unions. Teachers may organize craft or industrial unions, subject to the requirements of Taiwan's school system. Moreover, the Settlement of Labor Disputes Act (the "Dispute Act") will continue to prohibit teachers from going on strikes, in order to minimize disruptions to students' education.
l	The Amendments explicitly prohibit and provide penalties for employers' engaging in unfair labor practices, such as hindering the organization or operation of unions and discriminating against union leaders.
l	The Amendments define the types of unions and specify their scope of organization. In the future, together with the duty of good faith in the Collective Bargaining Agreement Act ("Bargaining Act") and the dispute resolution mechanisms in the Dispute Act, the Amendments will allow all unions to protect their members' labor rights. Also, the process for organizing unions will be further streamlined.
l	Unions will have discretion over the standards for the election, dismissal, and suspension of their directors and supervisors. In addition, foreign laborers may hold the position of union officers.
The Council of Labor Affairs commented that it is expecting the Amendments to take effect on January first or May first next year, along with the Bargaining Act and the Dispute Act.