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Short of Labor Ails Taiwanese Fastener Companies
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2021-11-25
The inflow of orders has increased to the point of overwhelming Taiwanese fastener companies since the start of 2021, but it also unveils the problem of labor shortage in those companies working really hard to catch up with customers' lead times. For a long time, insufficient domestic labors has forced Taiwanese fastener companies to rely on foreign labors. However, the obstructions in introducing foreign labors during the pandemic is adding pain on the companies, and this is coupled with exchange rates, shipment fee, available and other variables. The companies describe this year as a crazy ride but still have to pre-deploy workforce.
Taiwan's policies on foreign labors have untightened a little for concerns over human rights. Furthermore, the gap of minimum wage between domestic and foreign labors is no longer an issue under the dire lack of labors. However, the policy that allows foreign labors to stay or change employers after 3 years of working, could give foreign labor agencies room for manipulation and encourages foreign labors to switch to employers offering higher payments. This will add to the hardship for Taiwan's conventional industries, because foreign labors are not mentally attached to the land they work in and the companies they work for, and it is quite difficult to retain them.
In the past, foreign labors helped with unwelcomed jobs. If they get to choose work environment and wage. What will be left for Taiwan fastener industry? Automation requires time, funds, facilities and technical upgrade which are a high hurdle for small and medium enterprises. Therefore, Taiwanese government should readjust policies, set up time schedules to reduce impact, and provide multiple solutions for transformation and upgrade, rather than watch small and medium enterprises getting edged out of the market.
Recently, Taiwan is loosing its edge in introducing foreign labors. As a result, both the government and the industries should make re-examination and re-adjustment. The labor shortage has called for the fastener as well as other industries to examine foreign labors' wage rise and deployment of automated production, in order to reach balance between labors and companies and keep the competitive edge in the international market.
Taiwan's policies on foreign labors have untightened a little for concerns over human rights. Furthermore, the gap of minimum wage between domestic and foreign labors is no longer an issue under the dire lack of labors. However, the policy that allows foreign labors to stay or change employers after 3 years of working, could give foreign labor agencies room for manipulation and encourages foreign labors to switch to employers offering higher payments. This will add to the hardship for Taiwan's conventional industries, because foreign labors are not mentally attached to the land they work in and the companies they work for, and it is quite difficult to retain them.
In the past, foreign labors helped with unwelcomed jobs. If they get to choose work environment and wage. What will be left for Taiwan fastener industry? Automation requires time, funds, facilities and technical upgrade which are a high hurdle for small and medium enterprises. Therefore, Taiwanese government should readjust policies, set up time schedules to reduce impact, and provide multiple solutions for transformation and upgrade, rather than watch small and medium enterprises getting edged out of the market.
Recently, Taiwan is loosing its edge in introducing foreign labors. As a result, both the government and the industries should make re-examination and re-adjustment. The labor shortage has called for the fastener as well as other industries to examine foreign labors' wage rise and deployment of automated production, in order to reach balance between labors and companies and keep the competitive edge in the international market.
台灣螺絲螺帽業
缺工
Taiwanese fastener industry
labor shortage
