Labor-management Relations

Labor-management Relations

Viewing employees as an important asset, Novatech is obligated to provide every employee a safe and comfortable work environment and well-established personnel systems that contain competitive compensation packages. We set aside performance bonuses based on the business results and distribute earnings according to the "Articles of Incorporation." In addition to various employee benefits, we determine a raise based on each employee's performance. The employee welfare expenditure in 2019 totaled NT$2,223,558.

 

Management Approach

Disclosure	Novatech's Practices
Importance	Achieve the goal of long-term talent cultivation in accordance with the Labor Standards Act and increase employees' quality and expertise to improve work quality and performance for the Company.
Management strategies	Draw up related regulations to standardize the appointment and approval process Conduct on-the-job training in line with the Company's goals and improve employees' health through health examinations and activities. Submit the "Work Rules" to the authority in charge for review
Policies/ commitments	Training Quality Management Manual Training Regulations Regulations Governing Employee Appointment Regulations Governing Employee Compensation
Goals and targets	Introduce and complete the Talent Quality Management System (TTQS) to increase the benefits and quality of talent cultivation Carry out physician outpatient services on site four times a year (two hours each time) and nurse counseling on site four times a month (two hours each time Publish more than 10 digital health education articles
Responsibility	President
Resources	Supporting Center, Administration Department and ISEP Department
Grievance mechanisms	Company website: Stakeholder/Stakeholders Communication Channel s Employee contract: Jamie Yu E-Mail: Jamie_Yu@novatech.com.tw Tel:03-6676868 Ways of communication:email, telephone, employee voice, Employee Welfare Committee, labor-management meetings EHS contact: Ching Liu E-Mail:Ching_Liu@novatech.com.tw Tel:03-6676868 Ways of communication: email, EHS meetings and training
Action plans	Hold "labor-management meetings" on a regular basis to discuss labor issues Conduct regular performance evaluation, salary adjustment, and promotion every year Provide a free health examination for incumbent employees every year, distribute digital health education articles on a regular basis, and encourage employees to take up road running Conduct a survey of training needs to draw up an annual training plan, and organize required training to increase project knowledge Establish an employee training system and apply for the Talent Quality Management System (TTQS) of the Workforce Development Agency, Ministry of Labor
Effectiveness assessment	Keep a record of training hours and resources in 2019. No employee complaints were lodged in 2019 The training performance was approved by the TTQS of the Workforce Development Agency, Ministry of Labor.

 

Compensation and Benefits

Novatech has formulated the "Regulations Governing Employee Compensation," "Regulations Governing Employee Evaluation," and "Regulations Governing Rewards and Disciplinary Actions for Employees" in accordance with relevant laws and regulations. The goal of these announced, defined regulations is to reward employees who perform well and give poor performers room for improvement in hopes of achieving the Company's business philosophy and corporate social responsibility. Each year, the Supporting Center reviews the salary scale on the market on a regular basis, so as to provide reasonable compensation for employees. Bonuses are also calculated based on the annual budget achieving rate and employees' personal performances. We attach great importance to the growth of employees along with the Company and offer competitive compensation to retain outstanding employees. In 2018, the salary expenses averaged NT$965 thousand per person, ranked fifth among the electronics companies listed on the TPEx. In 2019, we offered and continued to raise the monthly basic wages more than the statutory requirements. The salaries of non-managerial regular employees averaged NT$1,059,128 in 2019, an increase of NT$964,833, or 9.77%, from 2018, and the median salary of non-managerial regular employees was NT$879,873 in 2019.

 

 

 

 

 

Employee Benefits

Besides insurance and pensions offered in accordance with local laws and regulations or practices, the Company offers group insurance more than the statutory requirements to protect the safety of employees at work and in life. We also provide maternity leave, paternity leave, family care leave, marriage leave, wedding cash gifts, and maternity cash gifts to encourage our employees to get married or bear children.

 

Type of Benefits	Measures
Employee care	Regular health examinations every year Group insurance, including life insurance, accident insurance, medical insurance, and cancer insurance Dinner parties and birthday parties every year
Subsidy	Marriage and childbirth funds Hospitalization subsidy for employees and their spouses and children and funeral subsidy for immediate family members Travel subsidy for employees and family members Birthday cash gifts, Dragon Boat Festival, Mid-Autumn Festival and Labor Day cash gifts, year-end party and lucky draw, year-end bonuses, remuneration, and employee stock options

 

Employee welfare expenditure in 2019 totaling NT$2,223,558.
Type of Benefits	Amount	Number of Employees
Cash gifts for three Chinese festivals	562,500	567
Flexible benefits	1,661,058	335
Subsidy for health examinations	36,000	120

 

Employee Travel to Liuqiu

 

Health Examinations and Health Promotion Activities

We take our employees' health seriously and strive to create the safety and health culture. According to the established "Health Protection and Occupational Disease Prevention Management Process," we organize health examinations at least once every year to keep track of the employees' health conditions, ensuring that every employee works with peace of mind. The full-time industrial safety personnel are assigned to each operation to attend external safety and health seminars from time to time; the personnel in charge of occupational safety and health management are also required to attend statutory refresher training on a regular basis to improve occupational safety and health management to perfection. We also share information on health education and EHS with our employees via email to remind them of the importance of being safe and healthy at work. In 2019, seven emails regarding occupational disaster cases were sent to increase employees' safety awareness, building a comprehensive health care network. In 2019, Novatech was awarded the Accreditation Badge for a Preliminary Healthy Workplace in recognition of our dedication to workplace safety. We expect to carry out physician outpatient services and nurse counseling on site on a regular basis and continue promoting the health of employees through digital publications and seminars.

Certifications



 

Insurance Coverage

Besides social insurance, namely, labor insurance and health insurance, and pensions offered according to law, the Company offers group insurance, including life insurance, accident insurance, medical insurance, and cancer insurance, to employees. We also take care of our employees' family members by allowing employees to purchase insurance for their spouses and children at a preferential rate, providing employees an insurance policy with full coverage.

 

Number of Employees	Number of employees covered by group insurance	Percentage of employees covered by group insurance
159	159	100%

 

Leave System for Work-Life Balance

To facilitate work-life balance, Novatech offers employees special leaves more than statutory requirements and honorable leave for those with outstanding performances; other paid leaves are also provided for employees, including marriage leave, pregnancy checkups leave, maternity leave, paternity leave, funeral leave, military service leave, occupational sickness leave, official leave, special leave. Employees may schedule leave based on personal needs, so as to achieve work-life balance.

 

Retirement System

The Company sets aside pensions in accordance with the "Labor Standards Act" to take care of and protect the work and life of employees. All of our employees have adopted the new pension system except for 28 employees who stick to the old pension system. Novatech sets aside and pays pensions to employees according to law.

In accordance with the "Labor Standards Act" and the "Labor Pension Act," the retirement system is divided into a new system and an old system, which is specified in the "Work Rules" as follows:

 

Pension Reserve Funds

According to law, Novatech sets aside (old system) or withholds (new system) pension reserves for every regular employee. In point of the old system (Labor Standards Act), we set aside the pension reserves based on 2% of the total monthly salary and review the annual rate on a regular basis; on the part of the new system (Labor Pension Act), we withhold 6% of every employee's monthly salary to his/ her dedicated pension account according to the salary scale. Employees may also choose to withhold up to 6% of their monthly salaries to their dedicated pension accounts according to the salary scale to protect their rights and interests.

 

Unpaid Parental Leave

We view employees as our important partner and make every endeavor to protect their rights and freedom. We offer parental leave to qualified employees in accordance with the "Labor Standards Act." In accordance with the "Act of Gender Equality in Employment" and " Regulations for Implementing Unpaid Parental Leave for Raising Children," employees who have served for one year or more are eligible to apply for unpaid parental leave for up to two years before their children reach the age of 3. After unpaid parental leave expires, the Company will reinstate the employees according to the job vacancies and personal volition to protect and value their career development. In 2019, 100% of the employees on unpaid parental leave were reinstated.

 

 

Reinstatement Rate & Retention Rate in 2019

 

Diverse Communication Channels

Novatech places importance to two-way communication with employees. We strive to create a highly engaged workplace where employees' voices can be heard promptly and properly through positive, unimpeded, and open communication and step-by-step instructions are given to help employees find the solutions to their problems. We encourage employees to point out all kinds of problems they are faced in the workplace using the "Internal/External Feedback Sheet." This allows stakeholders to share their opinions, communicate, and make inquiries with us freely and smoothly, creating an inclusive and constructive communication and feedback system.