Salary benefits and rights

Salary benefits and rights

To attract more talents, Unimicron sets incentive systems to attract and retain outstanding employees. The Company conducts performance evaluation on all employees every year as a reference for salary adjustment and promotion. We also participate in external salary and benefit surveys every year to regularly review the relation between salary/ benefit measures and the market, and adjust employees’ salaries in a timely manner to let more talented employees create value for Unimicron.

Employee salary level

Unimicron’s salary level is based on employees’ professional knowledge and skills, job mastery, academic background and work experience, and individual performance, all combined with the Company’s operating objectives to determine their overall salary. There is no difference in salary regardless of gender, race, religion, political views, marital status, etc. Salary level complies with that stipulated by the law. In order to promote cohesion of the Company, in addition to the basic salary and annual salary adjustment, Unimicron also flexibly adjusts salaries according to the Company’s current operating conditions to improve morale and encourage outstanding employees.

Female-to-male basic salary ratios in various positions

Region Plants in Taiwan South China-Shenzhen East China-Suzhou East China-Kunshan Central China-Huangshi
Position Male Female Male Female Male Female Male Female Male Female
Vice president level or higher 0.96 1 --- --- --- --- --- --- --- ---
Assistant VP 1.02 1 --- --- --- --- --- --- --- ---
Manager level 0.95 1 1.04 1 1.32 1 0.94 1 0.85 1
General 0.94 1 1.06 1 1.06 1 0.95 1 0.9 1

Female-to-male remuneration ratio in various positions

Region Plants in Taiwan South China-Shenzhen East China-Suzhou East China-Kunshan Central China-Huangshi
Position Male Female Male Female Male Female Male Female Male Female
Vice president level or higher 1.33 1 --- --- --- --- --- --- --- ---
Assistant VP 0.93 1 --- --- --- --- --- --- --- ---
Manager level 0.96 1 1.01 1 1.14 1 0.91 1 0.78 1
General 0.9 1 0.98 1 1.11 1 0.90 1 0.87 1

The basic salary is the basic monthly salary, excluding the variable remuneration; remuneration is the total annual salary. Statistics do not include expatriates because the senior executives (assistant vice president level or higher) of the plants in Mainland China are all male Taiwanese.

Initial salary for entry-level personnel to local initial salary ratio

Region Entry-level salary of Unimicron’s general employees
Plants in Taiwan 1.1
South China 1
East China (Suzhou) 1.25
East China (Kunshan) 1.13
Central China - Huangshi 1.23

Notes:
1. The minimum wage includes the basic salary and other allowances, excluding overtime pay.
2. Basic wages are represented by region due to their difference in each plant in Mainland China.

Employee welfare

Unimicron believes that achieving a work-life balance is the best way to improve work efficiency. We attach great importance to employees’ physical and mental balance. Unimicron plans various welfare systems in the workplace. In addition to providing various insurance benefits and pension contributions in accordance with local laws and regulations, Unimicron also provides group insurance superior to what the law requires to protect the safety of employees’ work and life. At the same time, the employees can include dependents in the insurance at their own expense. Unimicron also values employees’ leisure by regularly organizing parties and family day activities to promote parent-child interaction, and to increase employee morale and encourage employees to devote themselves more spontaneously.

Unimicron has, according to the statutory pension system, set aside pensions for each employee, and 100% of employees participate in the pension plan. According to the Labor Standards Act and the Labor Pension Act in Taiwan, employees who joined the Company before June 30, 2005 (inclusive) are entitled to the old pension seniority system. Unimicron deposits the escrow amount as stipulated by relevant laws and regulations, and commissions actuaries at the end of each year to conduct calculations and ensure that the retirement reserve appropriated is enough to satisfy and safeguard the rights and benefits of the employees’ future pensions.

Plant Retirement plan Pension contribution ratio Pension participation rate
Taiwan Pension in the old system: Corporate Pension Account Employer 2%; Employee 0% 1 %
Pension in the new system: Individual Pension Account Employer 6%; Employee 0 - 6% 99 %
Mainland China Endowment insurance (employee account) (South China) Employer 13 - 14%: Employee 8%
(East China) Employer 13 - 19%; Employee 8%
(Central China) Employer 19%; Employee 8%
100%

Full-time employees’ basic benefits

item Results
Allowance from Employee Welfare Committee They include birthday gift vouchers, new year gift vouchers, and various amounts of allowance and subsidies provided for various events such as weddings and funerals, vocational training, hospitalization, and occupational injury. The total amount of subsidies for birthday gift vouchers, new year gift vouchers, and wedding and funeral subsidies amounted to NT$30,566,484 in 2018.
Overseas group insurance The company provides a comprehensive group insurance package for employees stationed abroad.
Free group insurance It includes life insurance, accident insurance, medical insurance, cancer insurance, and preferential insurance for dependents.
Subsidies for in-service training he Company provides in-service training and education subsidies for high school, college, university or higher education institution students each school year. The average amount of subsidies per semester is between NT$2,500 and NT$8,500. In 2018, a total of 92 people applied and the total subsidy amounted to NT$219,500. High-level supervisors who pursue domestic and foreign EMBA degrees are fully subsidized. Since 2016, a total of 6 employees have applied and the total subsidized amount is NT$782,825.
General employee health checkup Health checkups and special workplace health checks are performed regularly every year, and four cancer screenings, breast ultrasound examinations, and abdominal ultrasound examinations are held at each plant to provide employees with health self-management programs. A total of 10,860 employees completed health checks in 2018, with a 99% check-up rate. (Health checks will still be arranged for employees who were not able to be checked at the plant due to leave or personal reasons.)
Visually impaired massage service All plants are equipped with massage rooms and a total of 16 visually impaired masseurs are hired to provide employees with relaxing massage services. In 2018, the number of employees using massage services amounted to 2,197, for a total of 1,636 hours.
Female employee care The Company provides lactation rooms and care measures during pregnancy (face-to-face health education, medical consultation, work environment and content suitability assessment, and shift adjustment) within plants in Taiwan. In 2018, a total of 264 people received pregnancy and postpartum care.
Club activities There are 16 clubs throughout the Company, and the Company provides subsidies that allow employees to choose a club that corresponds to their interests. In 2018, the amount of club subsidies reached NT$523,514.
Gatherings The Company regularly holds year-end parties to enhance employee interaction and bonding.
Recreational activities The Company organizes departmental activities to promote a harmonious internal atmosphere.
Affiliated stores Activity information on food, clothing, accommodation, and transportation of affiliated stores is provided, activities are held from time to time and special services and discounts are provided for purchasing a variety of gift vouchers.
24-hour convenience store Sunrise Charity Convenience Store is a 24-hour convenience store in the Taoyuan Shanyin Plant that offers discounts to employees. The total amount of discounts provided in 2018 amounted to NT$5.98 million.

Statistics on parental leave in Taiwan

Item Gender 2016 2017 2018
Number of applicants qualified for parental leave (A) Male 751 707 709
Female 515 496 486
Total 1266 1203 1195
Actual number of applicants (B) Male 29 46 32
Female 70 104 99
Total 99 150 131
Application rate (B/A) Male 3.90% 6.51% 4.51%
Female 13.60% 20.97% 20.37%
Total 7.80% 12.47% 10.96%
Number of applicants qualified for reinstatement (C) Male 38 42 32
Female 125 126 124
Total 163 168 156
Actual number of reinstatements (D) Male 17 32 24
Female 73 89 85
Total 90 121 109
Reinstatement rate (D/C) Male 44.70% 76.19% 75%
Female 58.40% 70.63% 68.55%
Total 55.20% 72.02% 69.87%
Number of reinstatements in the previous year (E) Male 25 17 32
Female 69 73 89
Total 94 90 121
Number of people reinstated for one year in the previous year (F) Male 17 11 25
Female 45 47 71
Total 62 58 96
Retention rate (F/E) Male 68% 64.71% 78.13%
Female 65.20% 64.38% 79.78%
Total 66% 64.44% 71.07%

Note: Mainland China does not implement the system of parental leave without pay, so it is not included in the statistics.
Note: The number of applicants qualified for parental leave is estimated based on the number of maternity/paternity leave applications made within the past 3 years.

Open communication channels

Unimicron values its communication with employees, and provides diverse communication channels for all employees, so that ethey can give feedback or consult at any time. We also provide an exclusive e-mail address for anonymous appeals and complaints to assist employees in solving a wide range of problems and provide comprehensive assistance.

In order to understand the work and living conditions of expatriate employees in plants in Mainland China and to improve their retention rate, the Company conducts surveys 3 months and 18 months after their dispatch. In addition, a forum is held every quarter. In addition to solving issues related living conditions, it invites department heads to participate in the forum, care for employees’ problems and suggestions regarding work and local life, and provide relevant assistance. With regard to employee feedback and questions, Unimicron invites relevant departments to respond and follow up those cases. Taking Taiwan plants as an example, in 2018, a total of 226 cases were formally submitted through the employee communication channel, while 337 cases were submitted in plants in Mainland China, and 100% of them have been solved. The contents of the appeal cases were mostly about the living / work environment, and the conditions have been improved and the responses sent back to the employees through the communication channel.

Unimicron currently has no labor union, but conducts bilateral communication by means of regular employer/employee meetings, and respects the right of all employees to participate in collective negotiation and peaceful gatherings. Upon conclusion, important matters and the advocated matters of the employeer/employee meeting shall be sent to all units, so that each employee can accurately and simultaneously understand the Company’s latest policies and handling of related issues, all in order to enhance employees’ cohesion and professionalism.

Employees’ Feedback in 2018

Complaints Appeals Suggestions Inquiries
104 6 69 47

Human rights related training

To establish a culture of equality, tolerance, and open communication, Unimicron will continue to adhere to a fair and respectful attitude to implement labor policies and their spirit. We will also conduct relevant training to ensure respect towards human rights.

Course name Training participants Number of employees that should be trained Number of employees trained Training rate(%) Total hours (man- hour)
RBA Taiwan (including staff in Taiwan and the Taiwanese staff dispatched to Mainland China) 14,499 13,367 92.2 2
Sexual Harassment Prevention Act Act of Gender Equality in Employment The entire Company (for employees employed for longer than three months) 14,499 14,218 98.1 2
Code of Business Ethics Taiwan (including staff in Taiwan and the Taiwanese staff dispatched to Mainland China) 14,499 14,218 98.1 2

Note:
The above courses have been planned among the newcomer training course to implement the training mechanism and increase the training rate. Some of our employees who are dispatched overseas and senior executives have not been trained. We will strengthen our promotion and urge them to complete these courses. We also provide training opportunities to our dispatched employees for advancing towards our goal of achieving 100% training rate.

Taking the prohibition of child labor as an example, the Company checks the age data of employees in the mMainland China plants. If it is found that the employee has not reached the legal working age, the Company shall carry out the following measures to ensure the rights and interests of both the employees and employer, including:

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