Taipei: Labor Minister Hung Sun-han announced Wednesday that the Ministry of Labor's (MOL) subsidies for businesses impacted by the 32 percent tariff announced by U.S. President Donald Trump will focus on efforts to reduce unemployment and the number of people put on unpaid leave.
According to Focus Taiwan, the MOL has laid out a "worker support policy" to prevent employees from being laid off by businesses affected by the tariffs and a contraction of the job market, which precludes unemployed people from returning to the workforce. Hung Sun-han discussed these measures with reporters at the legislature before attending a meeting, noting that the MOL has earmarked NT$15 billion (US$455 million) for this initiative.
The MOL has proactively contacted unions and trade associations that might experience significant impact from the tariffs to understand the employment situation at companies and within the industry. This approach aims to quickly devise response measures to mitigate the tariffs' effects.
Hung's remarks followed a statement from Taiwan Workers' United, a coalition of workers' unions, urging government measures to prioritize the prevention of layoffs and degradation of working conditions in response to the U.S. tariffs.
During a legislative session, Hung faced questions about which industries might be most affected by the tariffs. The Minister identified export-oriented sectors, such as manufacturers of machinery, autoparts, plastics, petrochemicals, plumbing, nuts and bolts, fasteners, and wires and cables, as the ones more susceptible to the negative impact.
Hung also mentioned the possibility of increasing the fund to assist businesses if the United States announces additional tariffs, potentially affecting other sectors. Under the MOL's employment stabilization policy, people on unpaid leave at companies where furloughed workers represent a certain percentage of all employees are eligible for subsidies to cover their pay shortfalls.
However, sectors must first gain approval from the "employment stabilization initiative advisory committee" to be eligible for the subsidies. The MOL plans to discuss this matter with relevant agencies and submit motions during a committee meeting, which could occur as early as next week.