TAIPEI (TVBS News) — In these challenging economic times, Taiwan's manufacturing sector shoulders the weight of the downturn.
The Ministry of Labor's latest report discloses a staggering figure: out of 12,105 individuals grappling with reduced work shifts, a remarkable 10,083 belong to the beleaguered manufacturing sector.
The primary culprit behind this crisis? The dwindling number of foreign orders.
According to Chiu Ta-sheng, a researcher at the Taiwan Institute of Economic Research, the decline in foreign orders engulfed Taiwan's manufacturing sector, affecting not only high-tech electronic components but also traditional sectors like plastics, rubber, fuel refineries, and mechanics.
All these sectors witnessed a double-digit decline in July compared to the previous year. The diminishing orders have sapped business motivation, leading to the adoption of reduced work shifts.
Meanwhile, New Taipei City has cracked down on employers found in violation of the Labor Standards Act.
A total of 315 enterprises stand accused, with the most frequent offense being the failure to provide overtime pay as mandated by law.
Hsiao Hui-min, section chief at New Taipei City Government's Department of Labor, underscored that the manufacturing sector, encompassing electronics, PC-related manufacturing, optoelectronic semiconductor industries, and medical instrument manufacturers, accounts for the lion's share of Labor Standards Act violations.
The primary reason behind this trend is the sector's vulnerability to high and low seasons. During peak seasons, enterprises maximize working hours to meet skyrocketing orders.
The manufacturing sector finds itself navigating a precarious balance. Some employees grapple with reduced work shifts due to dwindling orders, while others work overtime during peak seasons.
Both scenarios reflect effective cost management strategies deployed by businesses to weather economic uncertainty.
The silver lining emerges as the Ministry of Economic Affairs (MOEA) anticipates a gradual uptick in export orders over the next few quarters.
With inventories replenishing to healthier levels, a resurgence in the manufacturing sector looms on the horizon.