Workplace reviews and discussion: 栢悅國際股份有限公司

The issue of low wages for domestic workers has recently sparked considerable discussion. The reasons identified by the various discussions currently include the ineffective transformation of Taiwan’s industrial structure, companies operating through price-cutting competition by reducing labor costs, generally low wages in the service sector, the devaluation of academic credentials due to an oversupply of degrees, workers’ insufficient bargaining power over wages, and the anchoring effect of the 22K salary figure, among others.

While most discussions focus on industrial structure and labor-market factors, some market observers examine the causes of Taiwan’s low wages from the perspective of popular sentiment and culture. Many businesses in Taiwan are family enterprises. On the one hand, they may lack sufficient capital to pay high salaries; on the other hand, when designing compensation packages, some family businesses may be more inclined to consider the interests of family members, resulting in relatively low salaries for other employees. Public opinion has also criticized Taiwanese business owners for being stingy with pay, treating employees more as “workers” than “partners,” being less willing to provide sufficient training or help employees grow, and believing even more strongly that there is no need to pay higher salaries. These values stem primarily from Taiwan’s long-standing culture of careful penny-pinching, especially among businesses operated as family enterprises.

For example, market observer Chen Zhendong notes that in Taiwan’s family businesses, family members often occupy senior management positions. In particular, executives at Taiwan-listed companies are frequently major shareholders: they pay themselves high salaries and arrange for family members and relatives to serve as executives and receive high salaries. Yet, in order to answer to shareholders, they must suppress entry-level wages to maintain profit levels. He therefore believes that executives’ self-interest, which causes an unequal distribution of salaries, is one of the reasons that wages for entry-level workers in Taiwan are low.

【Guest Contribution】Without a Rich Dad, You’re Still Treated as Cheap Labor… An Examination of Family-Controlled Enterprises and Taiwan’s Low-Wage Phenomenon

https://opinion.cw.com.tw/blog/profile/52/article/14038

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https://www.cw.com.tw/article/5102982?template=transformers