CDF strictly abides by local labor laws, respects and supports various international human rights conventions, including various international human rights standards such as the “UN Universal Declaration of Human Rights”, the “UN Global Compact”, the “UN Guiding Principles on Business and Human Rights” and the “UN International Labor Organization”. The Company has a “CDF Human Rights Commitment” in place since 2017. In order to strengthen human rights management, the Company amended the relevant provisions of the commitment in 2021, covering the Company’s employees, suppliers and new business partners.
Since 2017, the Company has conducted Human Rights Due Diligence every year based on the CDF Human Rights Commitment, monitored the implementation and risk impact of human rights-related issues, and actively stands firmly in opposition to any business conduct that may infringe upon human rights,. In 2021, the Company issued questionnaires to 100% permanent employees, with 1,029 valid questionnaires were recovered, accounting for 7.7% of all permanent employees. The topics of the questionnaires include: work-life balance, freedom of association, smooth labor-management communication, workplace health and safety, no discrimination, no bullying, no harassment and no forced labor.
The Company requires all employees to take human rights-related promotion courses and workplace harassment and discrimination prevention courses every year. In 2021, the training hours totaled 34,234 hours, and the total number of trainees was 17,634 person-times. In 2021, the Company has not committed any human rights violations, or suffered from any labor-related penalties.
The Company adopts a performance-oriented compensation and bonus system is, taking into consideration the market competitiveness, linking operating results with individual performance, to achieving a triple-win outcome for employees, the Company and shareholders. Salary conditions are in compliance with the labor laws and regulations of the place of operation. Employees’ starting salary are determined based on their professional ability and the position held, following the rules of equal appointment. We provide competitive salary for employees, the maximum starting salary for freshmen is 2.7 times of the legal basic salary.
Employee compensation includes basic salary, allowances and variable bonuses, as well as annual performance bonuses based on overall business results and individual performance, so as to optimize the resource allocation, achieve outstanding performance or enable special contributors to receive corresponding rewards. The 2021 Employee Engagement Survey Report shows that, regardless of employees or organizations, they all agree that employees shall be rewarded for their contributions.
The Company participates in the market salary survey every year. The independent directors of the remuneration committee also review the remuneration system. The Company adjust employee salary based on the market salary level, economic trend and individual performance, promote outstanding talents through a fair and continuous promotion mechanism, and offer them higher positions and better pay. In 2021, the Company’s average salary increase rate was 3.5%, and that for excellent employees was more than 10%.
The Company’s remuneration policy for directors and managers shall be implemented and reviewed in accordance with the provisions of Remuneration Committee. Please refer to “2.2.4 Remuneration Policy” for details.
| Employee Level (Domestic) | Female (average salary) | Male (average salary) | Ratio(%) |
|---|---|---|---|
|
Executive level (Base salary only) |
3,715,294 |
4,205,197 |
88 |
|
Executive level (base salary + other cash incentives |
11,796,940 |
11,433,614 |
103 |
|
Management level (base salary only) |
996,822 |
1,085,675 |
92% |
|
Management level (base salary + other cash incentives) |
2,001,233 |
2,139,966 |
94 |
|
Non-management level |
1,133,769 |
1,091,956 |
104% |
Only healthy employees can create a bright future for the company. Therefore we have long held improving the health and happiness of our employees as part of our business philosophy. Since 2017, CDF has implemented the “Employee Caring and Health Care Projects” to provide a better work environment, medical consultations, and health examinations. In addition to more annual leave than required by the Labor Standards Act, we offer employees group insurances, as well as accident insurance, hospitalization/healthcare insurance. All of these are the concrete actions we take to take care of our employees and their family members. We have also designed a more flexible career plan for employees qualified for voluntary retirement which is superior to the law of labor. Since 2019, we have offered maternity allowances, more flexible work arrangements, and childcare service rendered by third-party partners, to help improve the declining birth rate.
Employee Caring and Health Care Projects
| Project | Content |
|---|---|
|
Flexible working hours / Part-time working options |
CDF provides flexible working hours (a 30-minute grace period after/before the scheduled clock-in/clock-out time) so that employees can take care of their young children. Moreover, employees can choose to start their lunch break early or late by 30 minutes to achieve work-life balance. Employees can also apply for part-time working options if necessary. |
|
Working-from-home arrangements |
In response to COVID-19, CDF has formulated the Workplace Epidemic Response Plan. Since 2021, we provided effective information system support, made working from home arrangements, maintained business continuity, and provided daily transportation allowance for employees who commute to work. |
|
Allowances for COVID-19 vaccinations |
In the early stage of the COVID-19 outbreak, we provided colleagues with allowances for vaccinations. |
|
Strengthen group insurance coverage |
We insure our employees with epidemic prevention insurance - “New Group Hospitalization Medical Health Insurance for Statutory Infectious Disease”, which will be included in the group insurance coverage in 2022. |
|
Childcare contribution |
CDF has contracted with external childcare centers to provide preferential childcare service for employees. |
We offer a maternity allowance amounting to NT$20,000 per child to increase employees‘ willingness to bear children, so as to resolve the declining birth rate.
Parental Leave
| Parental Leave | Female | Male | Total |
|---|---|---|---|
|
Number of eligible applicants |
98 |
60 |
158 |
|
Number of actual applicants |
56 |
8 |
64 |
|
Number of expected reinstatement |
109 |
24 |
133 |
|
Number of actual reinstatements |
96 |
30 |
126 |
|
Reinstatement rate(%) |
88 |
83 |
87 |
|
Reinstatement rate of the previous year |
97 |
100 |
97.5 |
1. Eligible applicants in 2021 included the aggregate of employees asking for maternity leave and male employees applying for a maternity allowance only.
2. Retrun to Work Rate = Number did Returned / Number should Returned.
3. Retention Rate = Returned over One Year / Number did Returned in the previous year (Reason of the employees who returned for less than one year included resigned voluntarily or applied for unpaid leave again).
We offer employees life insurance, accident insurance, hospitalization/healthcare insurance, cancer insurance, long-term group insurance coverage including extended epidemic insurance, and other group insurances that offer better protection than what is legally required, and provide travel insurance for employees on business trips. Employees’ dependants can also be enrolled in accident, hospitalization/healthcare, cancer, and other policies.
In accordance with the “Labor Standards Act” and “the Labor Pension Act”, we have formulated an “Employee Retirement Code”, make monthly pension contributions to employees’ personal accounts maintained by the Labor Pension Supervisory Committee and the personal account for pension fund. Before the end of a fiscal year, the Company estimates the difference between the balance of the personal account and the total pension payable in the next year, and then makes up the difference. The retirement contributions are completely separated from the Company and not included in the financial statements. At present, the new defined contribution plan applies to all employees except those who chose to apply the defined benefit plan before July 1, 2005.
Defined Contribution Plan: CDF and its subsidiaries in Taiwan contribute 6% of monthly salary to employees’ personal pension accounts as required by the Labor Pension Act. In 2021 and 2020, total pension reserves amounted to NT$696,837 thousand and NT$635,366 thousand, respectively. Overseas subsidiaries make contributions according to local regulations. In 2021 and 2020, total pension reserves were NT$2,181 thousand and NT$ 2,716 thousand, respectively.
Defined Benefit Plan: CDF and its subsidiaries in Taiwan distribute pensions to retired full-time employees based on their years of service and base salary upon retirement, as required by the Labor Standards Act.
| Plan | 2019 | 2020 | 2021 |
|---|---|---|---|
|
Present value of defined benefit obligation |
3,169,236 |
3,379,741 |
3,389,240 |
|
Fair value of employee benefit plan assets |
(2,126,435) |
(2,168,700) |
(2,019,685) |
|
Net defined benefit liabilities |
1,042,801 |
1,211,041 |
1,369,555 |