US embassy cable - 05TAIPEI4205

UNCLAS SECTION 01 OF 04 TAIPEI 004205 
 
SIPDIS 
 
PLEASE PASS AIT/W 
STATE FOR EAP/RSP/TC, DRL, G/TIP 
 
E.O. 12958: N/A 
TAGS: ECON, ELAB, PHUM, SMIG, TW, VM, ID, TH, PH, ILO, WCL 
SUBJECT: TAIWAN ADDRESSES FOREIGN WORKER ABUSE 
 
REF A) TAIPEI 03525 B) TAIPEI 03793 C) TAIPEI 03856 D) 
TAIPEI 03196 E) TAIPEI 03197 
 
1. Summary: The Thai labor riots (ref A, B and C) have 
highlighted the need for changes in Taiwan's treatment of 
foreign workers.  NGOs report that Taiwan employers are able 
to mistreat foreign workers because of inadequate laws. 
Mistreatment includes high broker fees, labor trafficking, 
and arbitrary deportations.  Almost half of the foreign 
workers are not covered by Taiwan's labor laws.  NGOs 
believe the Taiwan authorities have taken a business-as- 
usual approach now that the media are no longer focused on 
the Thai worker riots.  Officials at the Council of Labor 
Affairs (CLA) assert that substantial progress has been made 
in addressing the concerns of foreign workers.  CLA hopes to 
lower broker fees and prevent foreign workers from being 
deported without just cause.  End Summary. 
 
Background on Foreign Laborers in Taiwan 
--------------------------------------------- -------------- 
 
2.  There are a total of 314,000 foreign workers in Taiwan. 
They are composed of approximately 90,000 each from Vietnam, 
Thailand and the Philippines, 20,000 from Indonesia and less 
than a hundred from Mongolia.  The maximum amount of time 
they can work in Taiwan is six years. However, after the 
first three years they must return to their own country and 
re-apply for a second three year tour. 
 
3.  A little less than half of the foreign worker population 
(approximately 126,700) is engaged in domestic care.  They 
work in private homes taking care of the elderly or 
assisting in childcare.  The other half are involved in 
labor-intensive work such as construction.  Currently, the 
largest employer of foreign workers is the Formosa Plastics 
Corporation, which employs over 5,000 construction workers 
in building a new oil refinery in Mailiao, Taiwan. 
 
4.  Foreign workers are drawn to Taiwan because the minimum 
wage of approximately US$500 (NT$15,840) a month is one of 
the highest wages in Asia.  Foreign workers can make more 
money doing the same work in Taiwan than they could in Hong 
Kong or Singapore, two other popular destinations.  While, 
domestic care workers typically receive the minimum wage, 
other types of workers receive even higher wages.  In 
construction, wages for skilled labor such as welding 
approaches US$1,000 (NT$30,000) a month. 
 
Foreign labor's contribution to Taiwan's economy 
--------------------------------------------- -------------- 
 
5.  Foreign workers make substantial contributions to 
Taiwan.  Because Taiwan's population growth is one of the 
lowest in Asia at 1.24% (examined in ref D and E), Taiwan is 
facing a labor shortage.  By bringing in foreign workers, 
Taiwan can keep labor costs low for labor-intensive 
industries and help control inflation. 
 
6.  Foreign workers also help maintain Taiwan's social 
welfare programs.  Many foreign workers care for the 
elderly, which helps keep healthcare costs down for the 
government.  In addition, the 314,000 foreign workers are 
required to contribute to the national health insurance 
program and pay income taxes while they work in Taiwan.  The 
contributions are a boon for the social safety net since few 
foreign workers will claim any benefits in the short time 
they are in Taiwan. 
 
NGOs list four major issues that Taiwan government has not 
addressed 
--------------------------------------------- -------------- 
 
7.  Despite their contributions to Taiwan's prosperity, NGOs 
have long claimed that the Taiwan government turns a blind 
eye to the problems that foreign workers face.  There are 
four major issues that NGOs have told AIT need to be 
addressed.  First, high broker fees turn workers into 
indentured servants when they arrive in Taiwan.  Because of 
high demand and quota limits, brokers are able to charge 
high fees for a job in Taiwan.  For example, a domestic 
caretaker over the course of 3 years will pay on average 
US$4,000 to US$8,000 for a job in Taiwan.  Most workers 
expect to save almost nothing in the first 1-2 years to pay 
off the debt to the broker.  NGOs report that domestic 
caretakers receive approximately US$100 (NT3,000) to US$200 
(NT6,000) a month after deductions. 
 
High Broker Fees 
---------------- 
8.  Foreign workers can justify the high fees because once 
they pay off the broker fee after two years, they can keep 
most of their salary in their final year in Taiwan.  Even 
housekeepers that are paid the minimum wage may save 
US$4,000 after three years.  However, this does not always 
work out as planned.  Some dishonest brokers disguise 
additional fees in the form of loans.  Some workers may be 
sent home by their employers before they have repaid their 
broker fee.  As one foreign worker living at the government 
shelter said to AIT ECONOFF "it's a gamble.  But what do I 
have to lose? If I stay in the Philippines there is no job 
for me.  At least I have a chance in Taiwan." 
 
Bait & Switch 
------------- 
9.  Second, labor trafficking has not been adequately 
addressed by the Taiwan government.  NGOs report many cases 
where foreign workers, hired as domestic caretakers, are 
actually sent to factories after they arrive in Taiwan. 
Employers use this method to circumvent quotas on hiring 
foreign workers since domestic caretakers are exempted from 
quota restrictions.  The foreign workers are required to 
work in factories but then paid the same wages as a domestic 
caretaker; a fraction of the prevailing wage rate for a 
factory worker. Joyce Shiau, Director of the Taipei 
government shelter said this is the number one reason 
workers seek help at the shelter. 
 
10.  Penalties for employers involved in labor trafficking 
are light.  In one case, Joyce Shiau told AIT, that an 
inspector discovered an employer was making his housekeeper 
work in the employer's flour factory.  The inspector fined 
the employer US$1,000 (NT$30,000).  The inspector then 
returned the foreign worker to the employer's family so that 
she could continue working as a housekeeper.  Labor 
authorities will remove an employer's right to hire domestic 
caretakers only after the third offense. 
 
No Legal Protections for Domestic Staff 
--------------------------------------- 
11.  Third, domestic caretakers are not covered by Taiwan's 
labor standards law.  While foreign workers in construction 
are covered under Taiwan's labor laws, domestic caretakers, 
who make up about half of all foreign workers, are 
specifically exempt. Without any laws to protect domestic 
caretakers, time off, minimum wage and working conditions 
are decided by the employer.  AIT ECONOFF has learned of 
numerous cases where housekeepers have worked for one to two 
years without any time off.  To address this, NGOs have been 
advocating for a Household Services Law to regulate domestic 
caretakers.  However, officials at CLA have not supported 
the law and a commission created to write the bill could not 
come to a consensus. 
 
Deportation Problems 
-------------------- 
12.  Finally, Taiwan has no rules regarding the repatriation 
of foreign workers.  NGOs believe that foreign workers 
should have some kind of whistleblower protection if they 
face illegal working conditions. Without this protection, 
employers can arbitrarily deport foreign workers who raise 
concerns or seek help.  This was one of the contributing 
factors that led to the Thai worker riots. The Thai workers 
claimed that anyone who questioned their paycheck was 
immediately deported. (See ref A, B and C) A worker who is 
deported within the first two years may not be able to pay 
back the debt incurred from broker fees. 
 
NGOs Report on Recent Cases of Foreign Worker Abuse 
--------------------------------------------- -------------- 
 
13.  In addition to the Thai worker riots, NGOs have 
highlighted a few less widely reported cases of the foreign 
worker abuse.  NGOs believe that these cases show that the 
Thai worker riots were not an anomaly but part of a lasting 
trend.  In April 2005, a broker in Tainan, Taiwan was 
discovered to have raped up to thirty Vietnamese foreign 
workers that he brought to Taiwan.  NGOs point to the large 
number of victims as evidence that many foreign workers do 
not know that there are resources to help them.  In July 
2005, sixteen Filipino construction workers tried to stage a 
strike at the Formosa Plastics Corporation oil refinery 
about salary deductions.  They were allegedly beaten by 
guards and immediately deported. Four of them were still 
injured at the time they were deported and were later 
treated in Hong Kong.  The case is still under investigation 
by the CLA and Yunlin County Government.  In February 2004, 
New Party legislator Fong Hu-xiang was convicted of rape in 
a case involving his Filipino maid.  The case is currently 
on appeal. 
 
CLA Defends Themselves by Pointing to New Legal Aid Office 
--------------------------------------------- ------------- 
 
14.  Officials at CLA defend their policies.  CLA's Foreign 
Worker Affairs Director Liao Wei-ren explained that in 2004, 
Taiwan established a legal aid office that provides free 
legal services to foreign workers.  This office was 
instrumental in bringing cases against the broker in the 
Tainan incident involving the rape of Vietnamese workers. 
The legal aid office was able to arrange to have all the 
victims stay at government shelters and testify against the 
broker.  In addition, CLA has agreed to find them new jobs 
if they want to stay in Taiwan.  The case is still being 
investigated and the broker has been jailed while awaiting 
trial.  In the case of legislator Fong Hu-xiang, the 
housekeeper reported the case to the police and she was sent 
to a government shelter until she voluntarily left for the 
Philippines.  The legislator was sentenced to 4 years in 
prison. The case is on appeal but the legislator has been 
removed from office. As for the Filipino workers at Formosa 
Plastics Corporation, CLA officials admitted that the 
workers should not have been immediately deported back to 
Philippines.  An investigation is still pending. 
 
CLA has two new plans: Separate Processing at Airport and 
Bilateral Agreements 
--------------------------------------------- -------------- 
15.  In reference to the Filipino worker case, Liao admitted 
that employers have deported employees without cause.  To 
address the deportation problem, Liao said that the CLA is 
planning to build a separate waiting area for foreign 
workers at the airport.  No one except foreign workers will 
be allowed into the waiting area.  Foreign workers who 
arrive in Taiwan will be given pamphlets in their own 
language detailing their rights in the waiting area.  On 
departure the foreign workers will be allowed to report any 
illegal activity and be given the option to stay in a 
government shelter if they believe they are being deported 
without cause. 
 
16.  To address the issue of high broker fees, CLA is 
negotiating a bilateral agreement with the Philippine 
government to allow Filipino workers to apply directly to 
CLA if they want to return to Taiwan.  Currently, foreign 
workers who have finished three years in Taiwan need to 
leave Taiwan and apply for re-entry. This requires another 
broker fee.  Under CLA's plan, Filipino workers can bypass 
the brokers and apply directly to the CLA if they are 
returning for a second three-year contract. If successful, 
CLA plans to negotiate similar bilateral agreements with 
other countries.  With respect to the request by NGOs to 
completely abolish the broker system, Liao said that 
removing the broker system is not possible because the 
government does not have the resources to recruit foreign 
workers on its own. 
 
Translators, Hotline, Radio Programs and Pamphlets 
--------------------------------------------- -------------- 
 
17.  Joyce Shiau detailed all the services the Taiwan 
government provides. If foreign workers call the shelter 
hotline, they will be connected with a translator on staff. 
Depending on the nature of the complaint they can be 
directed to a shelter immediately.  The CLA has established 
24 offices around the island to provide counseling and other 
services to foreign workers.  Shiau also showed us pamphlets 
in four languages with information for foreign workers.  The 
police are required to give the pamphlets to all foreign 
workers when they apply for their Alien Resident Card.  She 
also showed the schedule for weekly radio programs directed 
toward foreign workers in their own language. 
 
18.  However, in a telling example that Taiwan's efforts are 
not as effective as officials claim, AIT ECONOFF met with 
two foreign workers who were living in the government 
shelter.  Both said, prior to being sent to the shelter, 
that they had never heard of any shelters, pamphlets, 
hotlines or radio programs offered to foreign workers.  They 
were directed to the shelter after going to the police.  One 
worker claimed that she was sexually abused by her employer 
and the other had been illegally employed.  However, to 
CLA's credit, both workers said they were impressed with the 
treatment they had received.  While CLA was arranging new 
employment for both of them, they were free to leave and 
enter the shelter and were provided free room and board. 
 
19.  Comment: The political environment in Taiwan is such 
that any case of foreign worker abuse that reaches the media 
receives major coverage.  The resignation of CLA Chairwomen 
Chen Chu over the Thai Labor riots shows that the Taiwan 
authorities were embarrassed by the riot and are paying 
attention to the problems foreign workers face in Taiwan. 
To its credit, CLA has successfully carried out plans to 
provide free legal services and operate government shelters 
for foreign workers.  One of the ruling party's most 
energetic and effective leaders, former Executive Yuan 
Secretary General Lee Yung-yuan, has succeeded Chen Chu as 
 
SIPDIS 
CLA Chairman.  This offers hope that CLA will continue to 
improve its performance.  However, problems such as high 
broker fees, arbitrary deportations and labor trafficking 
means that many foreign workers continue to suffer.  It 
remains to be seen whether CLA's plans to have separate 
waiting areas at airports and bilateral agreements to reduce 
broker fees will be successful.  End Comment.