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 nine suppliers.
Workers reported paying exorbitant recruitment fees of up to $6,000—two to three times what is typically found. Many also faced ongoing monthly “service fees” of $50 to $60 paid to Taiwanese brokers, amounting to more than two months’ base pay over a three-year contract. Some workers experienced the confiscation of their identity documents and restrictions on their movement.
We presented our findings and recommended remediation actions to more than 40 major international buyers across the apparel, bottling, and tech sectors. This led to collective efforts toward remedy, including corrective action plans at nearly all investigated suppliers. The American Apparel and Footwear Association and the Fair Labor Association are launching a new coalition to advance ethical practices in Taiwan’s textile industry. More than 50 brands signed a letter urging the government of Taiwan to enact legal reforms protecting migrant workers, followed by continued advocacy and workshops.
Transparentem remains committed to advocating for the implementation of effective remedies for workers and systemic changes to prevent these abuses from recurring. Eliminating labor abuses beyond tier-one manufacturing is complex and requires collaboration among businesses, workers, governments, and civil society. Meaningful action will protect workers, enhance business competitiveness, and strengthen Taiwan’s manufacturing sector.
