Friendly Workplace

Human Rights Policy

The Company respects and supports internationally recognized human rights norms and principles, including the Universal Declaration of Human Rights, the UN Global Compact, and the International Labor Organization's Declaration on Fundamental Principles and Rights at Work, and complies with the laws and regulations of the jurisdiction where the Company is located. In accordance with the United Nations Guiding Principles on Business and Human Rights, the Company has formulated the human right policy. The Company’s human right policy applies to the Company’s subsidiaries, foundations to which the Company’s cumulative direct or indirect contribution of funds exceeds 50 percent of its endowment, and other institutions or juristic persons that are effectively controlled by the Company (hereinafter referred to as “group enterprises and organizations”). In accordance with relevant laws and regulations, the Company regularly takes inventory of related forms and documents and reviews the legality of various operation processes.

Human Rights Policy

1. Diversity, Inclusion, and Equal Opportunity

  • In accordance with all national labor laws, the Company prohibits child labor and forced labor and does not tolerate discrimination. The Company strives to create a diverse, open, equal, and harassment-free work environment and provides an effective and appropriate grievance system to protect the rights and interests of its employees.
  • Employment is based on professional abilities and experience, and employees are not to be treated differently or discriminated against in any form based on race, class, language, ideology, religion, party affiliation, place of origin, place of birth, gender, sexual orientation, age, marriage, appearance, facial features, disability, zodiac sign, blood type, or previous union membership; where otherwise provided for in other laws, such provisions shall prevail.

2. Safe and Healthy Work Environment

  • The Company is committed to providing a safe and healthy work environment as well as necessary health and first aid measures to eliminate any factor that may be hazardous to the health and safety of its employees in the work environment, reducing the risk of occupational disasters.
  • The Company regularly provides labor safety related education and training, annual employee health checks, and various health promotion activities, in order to take care of the physical and mental health of its employees.

3. Freedom of Assembly

  • The Company respects the rights of employees to form and join various social organizations. Diversified communication systems and platforms are provided for employees to ensure a harmonious and win-win labor-management relationship.

Compensation Policy

The Company provides reasonable and competitive compensation to attract, retain and motivate talents to facilitate the long-term development and achieve the business goals of the Company. The salary payment is based on stable compensation, and flexible bonuses that take into account the content of each job, the responsibility, contribution and personal work performance are also provided. The Company’s compensation policy has been set up based on the principle of profit sharing.

Compensation Policy

1. Employees remuneration policy

  • Standard of remuneration payment is based on the Company’ s salary structure standard for each position. It also refers to the salary market and the state of operation, which involved the individual’s responsibility, learning and working experience, professional skill, job tenure and personal working performance.

2. Managers remuneration policy

  • Managers remuneration payment depends on the entire market positioning, result of industry investigation, and degree of goals achieving and contribution. The Salary and Remuneration Committee will regularly evaluate the payment with rationality.

3. Directors remuneration policy

  • Based on the Company’s articles, the total allocation for directors’ remuneration should not exceed 2% of the Company’s earnings for the year and should be distributed by performance evaluation of each director.
  • Salary and Remuneration Committee proposes that the Company pays a monthly fixed amount for directors’ remuneration by referring to the payment level of other listed companies in the same industry and the responsibility of each director. Thereafter, the above proposal will be evaluated and approved by the board of directors.
  • Besides the monthly fixed remuneration for directors, an allowance for their attendance will also be provided based on the actual frequency of their participation in the board meeting.
  • If the directors also served as other functional members in the committee, they are entitled for an additional monthly fixed payment based on the actual frequency of their participation in the Board meeting.

4. Independent Director remuneration policy

  • Independent directors get a monthly fixed payment. In addition, an allowance for their attendance will also be provided based on the actual frequency of their participation in the Committee meeting. However, they cannot participate in the distribution of earnings.
  • The fixed payment mentioned above is based on the degree of the participation and contribution of an individual in the Company’s operation and refers to the payment situation of other listed companies in the same industry. It is submitted to the remuneration committee for discussion, then proposed in the Board of Directors for evaluation and approval.
  • If the independent directors also served as other functional members in the committee, they are entitled for an additional monthly fixed payment based on the actual frequency of their participation in the Committee meeting.

Distribution of Employees

To establish a harmonious, friendly, and healthy working environment, Tung Ho Steel hires employees in accordance with Labor Standards Act, Act of Gender Equality in Employment and Occupational Safety and Health Act. As of the end of 2022, the total number of employees in Tung Ho Steel was 1,938, including 1,676 full-time employees (1,505 males and 171 females) and 262 temporary employees Note 1. Senior management Note 2 are 100% Taiwanese nationals, and all employees are full-time employees. In addition, there were 3 staff members without guaranteed working hours and 220 non-employee workers. The Company hired 60 indigenous employees (accounting for 3.1%) and 26 employees with disabilities (accounting for 1.3%), higher than the 1% standard of the government’s employment quota prescribed in the People with Disabilities Rights Protection Act. However, due to the characteristics of the iron and steel industry, there are more male employees, and the gap between the number of male and female employees is large. The number of people employed by the Company’s important operating bases in Taiwan increased by 161 compared with 2021, mainly due to the increase of the operating needs and the acquisition of the land, plant and equipment of Daya Works in August, 2022, which made it necessary to increase manpower accordingly to strengthen the technology and experience of the team.

1. Temporary employees refer to specific contract personnel, mainly foreign workers.
2. High-level management refers to management positions including the president, vice president, assistant manager and factory director.
3. The main work of the Company is all conducted by the employees hired by the Company, and there is no dispatched manpower and does not include board members.
4. The employee statistics mentioned above are from the HR system, and there are no numerical assumptions.
5. Local places refer to Taiwan region, and the major operating bases include the Head Office, Taoyuan Works, Miaoli Works, Kaohsiung Works, Daya Works, Taoyuan Fabrication Center, and Taichung Harbor Logistic Office.

Labor-Management Communication

The Company does not hinder the right to freedom of association and enterprise unions have been established in all operating bases, with labor-management meetings being regularly held. Trade union members can elect labor representatives to participate in labor-management meetings for labor-management communication, coordination of labor-management relations and promotion of labor-management cooperation.

In 2022, more than 99% of employees in the Company joined the trade union. The enterprise union in Miaoli Works officially signed a collective agreement, covering 100% of the total number of employees. Collective agreements have not yet been signed in other works. The Company has set up the Employee Welfare Committee and the Supervisory Committee of Workers' Retirement Fund, both of which have representatives elected by the enterprise union to serve as the committee members to supervise and protect the employees’ rights and interests.

Employee Benefits

Tung Ho Steel regards employees as the most important assets of the Company. In order to take full care of the employees and provide great working conditions to satisfy employees’ needs, we not only provide basic protection in accordance with legal requirements but also specifically provide or sponsor the promotion of welfare programs with establishment of the Joint Employee Welfare Committee among the major operating bases (including the Head Office, Taoyuan Works, Miaoli Works, Kaohsiung Works, Daya works, Taoyuan Fabrication Center, and Taichung Harbor Logistic Office) to organize various employee welfare activities and subsidies.

Talent Cultivation

To stimulate the potential of our employees and enhance their professional capabilities, we have provided diverse learning resources and channels, including the orientation training for new recruits, technical and professional training for various functions, management training for supervisors at all levels, and general education courses like languages and courses in arts and humanities. It is hoped that all employees can be in appropriate job fit through a complete education and training system to enrich the human resources of the Company. To encourage our employees to continue on-the-job learning to obtain more knowledge and skills, the costs for participating in education and training at home and abroad of the employees are 100% covered by the Company in accordance with the Education and Training Regulations. If the education and training courses are held beyond normal working hours, the employees can apply for overtime or switch shifts as prescribed.

We have established regulations on integrity and anti-corruption, including the Ethical Corporate Management Best Practice Principles, Procedures for Ethical Management and Guidelines for Conduct, Corporate Governance Best Practice Principles, Guidelines for the Adoption of Codes of Ethical Conduct for Directors and Managers, and Work Rules for Employees. In addition, we also carry out communication or training concerning anti-corruption on an irregular basis. We established the Risk Management Policy and Procedure that includes the recognition, prevention and control of fraud risks to strengthen corporate governance and integrity management. In 2022, the education and training course entitled “Anti-corruption norms and case study under the principle of integrity” was held for supervisors, sales personnel, trade/material personnel, finance and accounting personnel, and procurement personnel company-wide, and a total of 134 people participated in the course, with a total of 268 training hours. In addition, to strengthen the concepts of human rights and corporate social responsibility of our employees to protect their own rights and interests, relevant matters and regulations issued by the competent authorities, such as insider trading-related laws and regulations, advocacy of major information, and Q&A on handling guidelines will be emailed to all employees and also released on the intranet of the Company from time to time. In addition, we also publicize anti-corruption and sexual harassment prevention measures and require all employees to read relevant contents to strengthen the concept of compliance.

For unfit employees, the Company has set up relevant measures for performance improvement. The supervisors assist the employees to jointly establish the improvement plans and take corresponding measures, and three to six months will be provided for improvement. We aim at achieving the purpose of enabling employees to be in appropriate job fit.

Employee career education and training system
Orientation training for new recruits
Management training
Professional functions training
License training
Safety and health training
Human rights and corporate social responsibility-related training
General education courses like languages and courses in humanities and arts

Retirement System

The Company has set up the pension plan for the employees in accordance with the Labor Standard Act and Labor Pension Act and has approved the establishment of the Supervisory Committee of Labor Retirement ReserveNote. Actuarial calculation of the labor pensions of the old system is made year by year ( from 2015 to 2017 the allocation rate was 7%, and starting from 2018, the allocation rate was adjusted to 10%), and a meeting is convened regularly to protect the employees' rights and interests. As of the end of 2022, the pension reserve has been sufficient to cover the pension of employees who are qualified for retirement in a year. A 6% of monthly contribution to the individual pension account in accordance with the Monthly Contribution Classification Table is made for employees eligible for the new pension system, and the voluntary contribution percentage ranges from 0%~6%. As of the end of 2022, employees applicable to the pension system accounted for 86.5%. Temporary employees are specific fixed-term contract personnel, and do not apply to the pension system.

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