Taiwan
Overview
As of July 2024, Taiwan employed nearly 800,000 workers from Indonesia, the Philippines, Thailand, and Vietnam, with nearly two-thirds of these workers employed in the manufacturing sector. According to reports by the US State Department and the International Labour Organization (ILO), the recruitment process involving agencies in the workers’ home countries often includes exorbitantly high fees and deposits paid to private recruitment agents.
Local and international media, along with civil society groups, report that migrant workers often take on significant debt to pay these fees, and face harsh working and living conditions, limited freedom of movement, excessive overtime, and the threat of repatriation for protesting labor conditions or attempting to change employers.
Although Taiwanese law allows migrant workers to change employers at the end of their contracts or under certain conditions during their contract, practical opportunities to do so are minimal. This leaves migrant workers with few options to escape abusive situations if they wish to stay in Taiwan. In July 2023, Taiwan’s highest supervisory and auditory branch of the government, the Control Yuan, recommended the gradual easing of these legal restrictions to improve workers’ ability to change employers.
Our Investigation
In 2022 and 2023, Transparentem investigators confidentially interviewed over 90 workers from Vietnam, the Philippines, Indonesia, and Thailand. The investigation uncovered ILO indicators of forced labor and other labor abuses at 13 facilities run by 9 suppliers. Transparentem shared these findings with the suppliers and their buyers, along with recommendations for remediation.
At Transparentem’s urging, and with support from the Fair Labor Association and the American Apparel and Footwear Association, several buyers are pushing for significant reforms by the Taiwanese government. A joint letter recommending these reforms has been signed by 50 buyers, including 32 involved in this specific investigation.
Transparentem continues to advocate for the implementation of effective remedies for workers and systemic changes to prevent the recurrence of these issues. For further details, please see Transparentem’s Interim Report.
In early 2025, Transparentem plans to release a detailed report identifying the investigated suppliers and the buyers we have engaged for remediation. This report will outline the corrective actions taken, highlight any gaps in due diligence, and present preliminary outcomes from our engagements with the government, including those related to public procurement.
Eliminating labor abuses beyond tier-one manufacturing is challenging and requires collaboration from businesses, workers, governments, and civil society. Successful efforts will protect workers, boost business competitiveness, and strengthen Taiwan’s manufacturing sector.