It is reported that Norway's $1 trillion wealth fund excluded Formosa Chemicals and Fibre and Formosa Taffeta Co., Ltd. due to its labor management of its investee enterprises risk of human right violations.
On this matter, Formosa Taffeta Co., Ltd. (FTC) makes a clear statement:
The Council on Ethics for the Norwegian Government Pension Fund Global claimed that FTC attempted to conceal the actual practice of the subsidiary in Dong Nai Plant. It underestimated the credibility of the information that the Company provided. Therefore, the Council gave weight to its own investigations.
According to its report, the Council concluded that the actual working hours and wages could not be verified and considered the statements from the interviewees that they rarely worked overtime and never worked on Sundays seemed to be coached. Therefore, the Council did not believe the statements from the Company and most of our employees. It demonstrated that the audit process seemed quit unfair. In addition, a closing meeting was not held, and the Council considered the credibility of the information FTC provided weak but without checking with our side, which gives a negative impression that the Council reviewed the information with its own subjectivity.
FTC never illegally deducts wage. Withholding items include board and lodging expenses and withholding income tax in line with law.
FTC’s working environment and equipment are all in accordance with the law. However, perspectives on working conditions may vary from person to person. Therefore, the Company will keep improving the working environment to meet the employees’ expectations.
Established in 2004, Formosa Taffeta Dong Nai CO., LTD. has followed strictly the company philosophy of FTC. We value labor rights, comply with the national legislation and fulfill its corporate social responsibility. Formosa Taffeta Dong Nai CO., LTD. was recognized as a cultural standard enterprise by Confederation of Labor at Dong Nai Province, Vietnam in 2012 which means the Company meets the standards of corporate policy, environment and employee welfare. Moreover, it has been awarded a superb corporation by the Vietnam government for consecutive nine years between 2012 and 2020.
FTC has accepted CSR’s audits from many brand customers and kept improving the social responsibility management. In 2019, FTC has acquired a scored A- in Carbon Disclosure Project higher than the Asia regional average C. In 2020, FTC was even elected as the constituent company in the FTSE4GOOD Taiwan ESG Index based on the assessment of FTSE Russell’s Environment, Social, and Governance system. These achievements prove that FTC has done all the possible efforts on corporate social responsibility and earned high recognition.
FTC respects the investment decisions made by investors. But, an unfair and non-objective audit to influence FTC’s reputation is totally not allowed.