Another disaster for business?
It was in some respects an awkward time for the bill's passage, what with a high unemployment rate and a generally poor business climate. It's one thing if a business is making money, but if a company running in the red has to give its employees extra days off, won't this just make labor costs too much to bear? And if a company thus closes up shop, won't the employees ultimately be the victims? This isn't just the concern of businesses; it's a fear of many wage earners!
In January the website 1111 Manpower Bank invited Windbond Electronics, the Chinese National Association of Industry and Commerce and other representatives of industry to discuss the impact of this new law on businesses. Executives of companies pointed out that although the one day of menstrual leave counts as a sick day for which employers are only required to pay half a day's wages, under the law these days off cannot affect attendance bonuses. Since any day a man takes off is counted against these bonuses, isn't this discrimination against men?
1111 Manpower Bank also surveyed 100 members of the financial services industry about the new law. More than 80% were against the provisions for maternity and paternity leaves and the requirement that businesses provide daycare facilities, believing that these would raise operational costs and create scheduling difficulties.
Off the record, an executive of a high-tech company located in the Hsinchu Science-Based Industrial Park said: "The women's rights movement has gone too far. It is affecting competitiveness." Some people are worried that industry might begin to believe that hiring women is more trouble than it's worth, with the result that women might lose job opportunities.
"Perhaps this is a danger," says Kuo Chi-jen, vice chairman of the Council of Labor Affairs. Nevertheless, Kuo points out that when the Labor Standards Law was passed in 1987, industry was up in arms, but now they have completely adapted. The LGEW ought to be much easier for them to comply with. The Council of Labor Affairs has decided to use incentives rather than penalties, in the hope of getting labor and management to come to a consensus.
"A critical response from industry was expected," says Chiao Hsing-kai, but many of the criticisms have been based on misunderstandings. For instance, the law stipulates that businesses which employ more than 250 people must provide daycare facilities. Many employers think that this requires them to establish such facilities in house, but actually the law isn't nearly so rigid, and there are numerous ways to comply. Companies can provide daycare subsidies to families, sign contracts with professional daycare providers to handle these services for their employees, or just post on their website a list of neighborhood day-care centers. Any of these will satisfy the law's requirements.
The Council of Labor Affairs has also drawn up financial incentives for businesses to provide daycare. If a company establishes a daycare center, it can obtain as much as NT$1 million in financial assistance. Companies that have already established daycare centers can obtain NT$300,000 per year for new equipment. If a company arranges for an alternative method of day care, it can obtain NT$100,000 a year.
Industry coddling
When the LGEW goes into effect on March 8, it is sure to meet with a chorus of critical voices. But the truth is that many companies already provide daycare voluntarily in the belief that it is a win-win situation.
In 1997 Accton Technology established its first daycare center on the first floor of its building. Then last year, when the space for the center became too small, the company established 300-plus square meter daycare center in a building that is a five-minute drive away. The classrooms have wood floors, five full-time teachers and more than 30 children. The youngest is only three months old. The cost is NT$9,500 a month. It's cheaper than hiring a babysitter, and allows the parents to be near their children. The center has been very well received.
Taiwan Semiconductor, which employs more than 14,000 workers, has a famous daycare center with a mixed-age bilingual environment. Currently, eight teachers take care of 100 students, with many more on the waiting list.
Kaohsiung's Nantzu Export Processing Zone, as well as the industrial parks of Linkou and Chungli, each have daycare centers that serve all of their companies. Chungli's center is well over 2000 square meters, and in addition to its classrooms it also has ample green space. Its more than 190 charges play happily both inside and out of doors.
"The LGEW isn't going to cause us great difficulties, because we were already offering benefits above what is now legally required," says Lin Tzu-chao, Accton's vice president of Operations. Lin sympathizes with women who have to do double duties at home and at work.
"Konosuke Matsushita, the Japanese management guru, once said that not making a profit is evil, because a company has so many workers to support," Lin says. Last year was Accton's most profitable in its history, and so the company was willing to pour money into benefits for its employees. This is also the trend in the advanced industrial nations.
A leader in the service industry, 7-Eleven (owned in Taiwan by President Foods) has long had a flexible personnel system. For many years they have offered two days for paternity leave and 14 sick days per year at half pay, as well as the opportunity to request a leave of absence of up to a year with the guarantee of the same salary upon one's return. Beyond a year, one can then request an extension of leave but will not be guaranteed the same job back.
It's not just for the women
The LGEW is well intended, but many people agree that it will require a period of adjustment before it really can be effectively implemented. The biggest obstacle is the requirement of two years of maternity leave. However, it turns out that in practice, few women want to take maternity leave.
Hu Pi-hua works for Nan Yang Industries (the local Honda affiliate) in Chungli Industrial Park. Finding it exhausting caring for her child at home, Hu decided to go back to work and let the grandparents care for the child. "Many families, when comparing the wife's salary to the cost of a baby sitter, will decide that it makes sense to let the wife go back to work."
Even though Accton announced a maternity leave program two years ago, among the 830 women employees, only three have actually applied to take a leave. Nan Yang and President have implemented similar leave programs, and alike found that few women take advantage.
Although the new law includes the words "gender equality" in its name, most people are under the impression that it is a policy that favors women.
"In truth, we also encourage men to take paternity leave," says Chiao Hsing-kai. "That misperception will gradually change." But since women make only 70% of what men make in Taiwan, it is inevitable that more women take time off to care for the kids.
"Even if I earned more than my husband," says Nan Yang's Hu Pi-hua, "It's hard for me to imagine asking my husband to leave work and care for the kids. I've got to look out for his sense of masculinity and self-respect."
Making both genders happy
Whether it's a question of "whose salary is higher" or "whose self-respect should be protected," there is no denying that Taiwan is gradually embracing the concept of gender equality
In Taiwan today the family that can be supported by a single breadwinner is rare indeed. Rather than the traditional "three generations under one roof," the nuclear family now predominates. How many families face the dilemma of having both parents at work, children at home and no one to care for the grandparents?
In balancing work and home, families in Taiwan now have a new choice: parents needn't fear that they will be forced out of the workplace forever if they choose to take maternity or paternity leave. By aiming to create a system of gender equality at the workplace, this new law may have given birth to a society of gender equality, where women's problems are everyone's problems.