Formosa Group to Hold Salary Negotiations on 14th, Union Demands 3.66% Raise

According to reports from Central News Agency, senior management of Formosa Group will meet with union representatives on July 14 for the annual salary negotiation meeting to discuss this year's pay adjustment plan. With the combined after-tax profit of Formosa's four core companies—Formosa Plastics, Nan Ya Plastics, Formosa Chemicals & Fibers, and Formosa Petrochemical—reaching NT$108.453 billion in the first half of 2024, a significant turnaround from last year's losses, the union is demanding a 3.66% salary increase to reflect inflationary pressures and improved profitability. The market is closely watching whether the final adjustment will exceed last year's 2%.

This year's negotiation marks the first annual pay decision since Formosa Group's new chairman, Wu Jiazhao, took office, signaling the company's full transition into a professional management-led operation, making it particularly significant. Last year, the company granted a 2% raise across the board, which translated to an average monthly increase of approximately NT$1,190 for frontline workers earning around NT$59,000 per month.

The strong financial recovery in the first half of the year, combined with growing pressure to retain talent, adds weight to the union's demands. The outcome of these negotiations could set a benchmark for wage adjustments across Taiwan's manufacturing sector, especially within the petrochemical industry.