Employee care

Employee care management policy description

Policy Health management New employee care
Commitment Achieve work-life balance Concern for new employee adaptation
Responsible unit Human Resources Department Human Resources Department
Resources invested Resident physicians *2
Nurses *12
Health promotion activity expenses
Employee relations contact point
Complaint mechanism Employee suggestion box
Employer/Employee meetings
E-MAIL
Complaint line
Satisfaction questionnaire
Employee suggestion box
Employer/Employee meetings
E-MAIL
Complaint line
New employee questionnaire
Goals Health promotion satisfaction Excellent employee retention rate
Action plans Interview with resident physicians
Job redesign project
Massage service
Female employee care program
Health promotion activities
Four types of cancer screenings
Disease prevention vaccination
Health check-up
New overseas employee caring interview
New engineer caring interview
Team Consensus Camp (Winning team)
Establish a counseling mechanism
Other measures - -

International regulation implementation

We comply with the RBA Code of Conduct of the Responsible Business Alliance (formerly known as the EICC). In order to comply with international regulations, we establish relevant documents and standards:

Guidelines Document/SOP
Freedom to choose profession · Work rules
· Code of Business Ethics
· Personnel appointment process
· Regulations on overseas labor selection
Young workers · Work rules
· Personnel appointment process
· Safety and health protection measures for women and workers under the age of 18
Working hours · Work rules
· Attendance and leave regulations
· Rules on working hours
Wages and benefits · Rules on the salaries of Taiwanese employees
· Rules on the salaries of foreign employees
· Regulations Governing Administrative Rewards and Punishments
Humane treatment · Work rules · Regulations Governing Administrative Rewards and Punishments
No discrimination · Work rules
· Regulations Governing Complaints and Sexual Harassment
Freedom of association · Regulations for Implementing Labor-Management Meeting

Unimicron’s business locations can be found all over the world. In this highly competitive industry, talent is the key to a company’s success in the global market. In addition to complying with the local labor laws and regulations of our operating locations and the international human right standards such as the RBA Code of Conduct, Unimicron is committed to creating a happy workplace and providing employees with a place to fully showcase their capabilities.

Unimicron’s
labor policies
Fair employment – Prevent discrimination during recruitment, employment, evaluation and promotion
Humane treatment – Maintain equal opportunities and dignity for all employees
Employee communication – Encourage employees to express opinions, and protect the rights those who file a complaint
Improve working conditions – Offer a sound salary and welfare system, and strengthen occupational training in order to enhance employees’ competitiveness
Code of Integrity – Uphold the principles of integrity and honesty

Employment and retention

Employment status

Unimicron adheres to the principles of fairness and diversified employment. In terms of recruitment, employment, evaluation, and promotion, employees of different age, gender, race, religion, political views, marital status, labor union affiliation, and background are treated fairly and equally, where the only considerations are finding the appropriate candidate for the appropriate position, and creating fair and diverse employment opportunities for all operation sites to promote local economic growth.

In 2018, the total number of employees of Unimicron in Taiwan and Mainland China was 25,982. As the industrial production is semi-automated, some processes still rely on manual and labor-intensive work, and workers in some Management are exposed to chemicals. Therefore, the proportion of male employees is higher than that of female employees. Additionally, 95% of foreign employees in Unimicron’s plants in Taiwan are from the Philippines; as the Philippines is an English-speaking country, it is relatively easier to communicate. The educational background of most of the employees in our plants in Mainland China is below senior high school / occupational school mainly because 80% of employees of our plants in Mainland China are direct technical staff.

Unimicron’s Human Resource Structure in 2018

Category / Item / Area Taiwan Mainland China
Category Item Male Female Total Of total number of employees Ratio Male Female Total Of total number of employees Ratio
Number of employees Number of people 8,695 5,804 14,499 - 7,128 4,355 11,483 -
Non-fixed- term contract employees Direct employees 4,652 3,005 7,657 52.81% 5,723 3,478 9,201 80.13%
間接人員 2,137 993 3,130 21.59% 1,364 871 2,235 19.46%
Fixed-term contract employees (Dispatched) Contract workers 319 211 530 3.66% 41 6 47 0.41%
Foreign employees 1,427 1,551 2,978 20.54% 0 0 0 0.00%
Student trainees 160 44 204 1.41% 0 0 0 0.00%
Age Under the age of 30 2,668 1,895 4,563 31.47% 4,112 2,307 6,419 55.90%
Aged 30-50 5,785 3,642 9,427 65.02% 2,948 2,037 4,985 43.41%
Over 50 years old 242 267 509 3.51% 68 11 79 0.69%
Employee position distribution Vice president level or higher 32 1 33 0.23% 5 0 5 0.04%
Assistant vice president level 53 7 60 0.41% 24 2 26 0.23%
Manager level 593 147 740 5.10% 79 27 106 0.92%
General staff 8,017 5,649 13,666 94.25% 7,020 4,326 11,346 98.81%

Notes:
1.Vice president level or higher: It includes chairman/ presidents of SBUs / functional presidents / (senior) vice presidents / chief quality officer / chief
strategy officers / senior (project) special assistants.
2.Assistant vice president level: It includes senior (project) special assistants / assistant vice presidents/ factory managers / department managers / (senior) deputy factory managers / deputy department managers
3.Manager level: It includes (senior) managers/ (senior) project managers/ (senior) assistant managers/ (senior) project assistant managers.
4.General employees: They include (senior) section managers / (senior) project section managers / foremen / deputy foremen/ (senior/executive) engineers/ (senior/executive) administrators / (senior/executive) clerks / (senior/executive) technicians / (senior) technical engineers / assistant (technical) engineers/ assistant administrators / technicians / clerks / foreign workers/ interns / student trainees/ contract workers.
5.Student trainees: They refer to students employed through contracts with the educational partners, combining education and industry bilateral training to cultivate students’ vocational skills while they are still in schools. 6. 6.Direct employees: Assembly line workers. Indirect employees: Others.

Item 2016 2017 2018
Taiwan Mainland China Taiwan Mainland China Taiwan Mainland China
Number of local residents acting as senior executives 70 0 86 0 91 3
Total senior executives 70 20 86 28 93 31
Ratio 100% 0% 100% 0% 97.85% 9.67%

Note: Senior executives refer to assistant vice president level (inclusive) or higher employees. Local residents refer to nationals of the factory locations.

Year 2016 2017 2018
Taiwan Mainland China Taiwan Mainland China Taiwan Mainland China
Ratio of female employees (%) of total labor force 41% 36.51% 41.28% 37.02% 40.03% 37.93%
Ratio of female supervisors (%) (out of all supervisors) 18.42% 17.83% 18.15% 19.84% 18.61% 21.07%
Ratio of executive female supervisors (%) (out of all executive supervisors) 8.57% 5.00% 9.30% 9.30% 8.61% 6.45%
Ratio of entry-level female supervisors (%) (out of all entry-level supervisors) 19.46% 20.18% 19.21% 19.21% 19.86% 25.47%

Note: All supervisors refer to manager level (inclusive) or higher. Entry-level supervisors refer to manager level.

Recruitment and retention

Unimicron raises the Company’s growth momentum through various recruitment channels. We have established complete recruitment standards and mechanisms to ensure that employees can develop their talents and perform jobs they are apt for through appropriate tests and interviews. Our main recruitment channels include campus recruitment, cooperative scholarship programs with nearby schools, summer internships, and Research and Development Substitute Services. We hope that energy can be infused continuously into our Company.

Caring for new employees and talent retention

Unimicron has counselors for new employees, providing assistance in work and skills, and assists new employees to fit in and adapt to the new environment via various methods.

2018 New hires

Region Taiwan Mainland China
Age Gender Number of new hires Number of current employees New hire rate Number of new hires Number of current employees New hire rate
Under the age of 30 Male 507 2,668 3.50% 4,991 4,112 43.46%
Female 316 1,895 2.18% 2,861 2,307 24.92%
Total 823 4,563 5.68% 7,852 6,419 68.38%
Aged 30-50 Male 1,554 5,785 10.72% 1,895 2,948 16.50%
Female 732 3,642 5.05% 1,224 2,037 10.66%
Total 2,286 9,427 15.77% 3,119 4,985 27.16%
Over 50 years old Male 7 242 0.05% 7 68 0.06%
Female 4 267 0.03% 3 11 0.03%
Total 11 509 0.08% 10 79 0.09%

Note: Employment rate = Annual total new hires (non-fixed-term new hires employed for longer than three months) / Number of current employees(non- fixed-term employees) at year-end (December 31).

In terms of the management of departing employees, after the employee requests to resign, the relevant supervisor shall immediately interview the employee and the Human Resources Department will also conduct a one-on-one interview to understand the reasons for the employee's departure, and make work adjustment or care as needed. If the company has major operational changes, the advance notice shall be given in accordance with the labor laws and regulations. Plants in Taiwan comply with the Labor Standards Act. In Taiwan, notice should be given 10 to 30 days in advance based on length of service, whereas notice should be given 30 days in advance in our plants in Mainland China in accordance with the Labor Contract Law.

Optimize salary competitiveness and ensure the retention of outstanding talents .Salary adjustment due to excellent performance
.Retention bonus
Strengthen the rotation mechanism and cultivate T-shaped talents T-shaped talents represent width of their knowledge and depth of technique and know-how. The combination of the two accounts for deeper professional understanding, broader knowledge base, and cross-disciplinary abilities.

2018 Employee turnover statistics

Region Taiwan Mainland China
Item Number of employees departing Number of current employees Turnover rate Number of employees departing Number of current employees Turnover rate
Under the age of 30 Male 235 2,668 1.62% 2,069 4,112 18.02%
Female 189 1,895 1.30% 1,215 2,307 10.58%
Total 424 4,563 2.92% 3,284 6,419 28.60%
Aged 30-50 Male 850 5,785 5.86% 896 2,948 7.80%
Female 402 3,642 2.77% 640 2,037 5.57%
Total 1,252 9,427 8.64% 1,536 4,985 13.38%
Over 50 years old Male 15 242 0.10% 8 68 0.07%
Female 34 267 0.23% 12 11 0.10%
Total 49 509 0.34% 20 79 0.17%

Note 1: Employee turnover rate =Annual total number of employees departing (non-fixed-term resigning employees employed for longer than three months) / Number of current employees (non-fixed-term employees) at year-end (Dec. 31).
Note 2: The adjustment of the plant policy of Unimicron-FPC Technology (Kunshan) in Mainland China resulted in the loss of new hires (direct staff under the age of 30), so the turnover rate was higher.

Employee turnover rate

year 2016 2017 2018
Region Mainland China Taiwan Mainland China Taiwan Mainland China Taiwan
Overall turnover rate 50.68% 19.89% 45.67% 20.19% 42.15% 11.90%
Voluntary turnover rate 50.59% 18.05% 45.48% 19.82% 41.95% 11.59%

Voluntary turnover rate = Annual total number of employees departing (non-fixed-term departing employees employed for longer than three months) - number of involuntary resigned employees (non-fixed-term departing employees employed for longer than three months) / number of current employees (non-fixed-term employees) at year-end (Dec. 31).

Recruitment of potential new employees

Mutual benefits of cooperation between schools and employers

Unimicron has long been engaged in industry-academia collaboration with related technological schools to provide students with a good working and learning environment. For example, the Company has plans of comprehensive subsidies and care measures during students’ employment, including independent accommodation space, work and life adaptation assessment, consultation interviews, tuition and fee subsidies, reward contracts, and summer and winter internship opportunities. Unimicron has engaged in industry-academia collaboration with ten schools and a total of 199 people in 2018.

School Ranking by the number of students in industry-academia collaboration
St. John’s University 1
Ta Hwa University of Science and Technology 2
Minghsin University of Science and Technology 3
Yuanpei University of Medical Technology 4
National Taipei University of Technology 5
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