TSMC employees forced to take unpaid leave

EVERYONE LIKES having days off work, but being forced to take unpaid leave is hardly popular, and its something Taiwan Semiconductor Manufacturing Co (TSMC) is asking its employees to do in order to cut costs and make it through the financial crisis.

In a video address to employees, the firm’s chief exec, Rick Tsai, told staff it looked as though the economic crisis would last a while, making business difficult.

"Although our performance was very good in the first three quarters of the year, it began to decline rapidly in the fourth quarter," he said, noting the firm would be doing its best to lower costs. "At the same time," he added, "we will also do all we can to protect employees’ jobs."

The first to be affected will be TSMC employees who work in manufacturing departments; these have been asked to take as many as five unpaid days a month starting this month.

In January, staff from other departments will also be made to take one unpaid leave day a week.

The move comes after TSMC revised its revenue forecast for this quarter, cutting it by over eight per cent, whilst also slashing gross margins by four per cent.

Last month the firm pessimistically predicted it might have to lop 20 per cent off its capital spending in 2009, down from the $1.8 billion it spent in 2008.

TSMC is aware that employees will be none too pleased to be taking forced holidays and massive paycuts, but the firm says it will try and make right of the situation by setting aside a chunk of its profits for redistribution amongst employees to help make up for it.

Now, get back to not working! µ

L'Inq
Taipei Times