The Plight of Migrant Workers in Taiwan’s Manufacturing Sector
In February 2025, Transparentem, a prominent NGO focused on supply chain transparency, released a significant report highlighting the precarious recruitment experiences of migrant workers in Taiwan’s manufacturing sector. This report follows closely on the heels of another investigation, “Following the Thread – Labor Abuses in Taiwan’s Textile Industry,” emphasizing the pervasive issues faced by migrant laborers in this critical region.
Insights from the Report
Transparentem’s findings are based on interviews with 22 Vietnamese workers employed by four suppliers in Taiwan’s textile and electronics industries: Johnson Controls-Hitachi Air Conditioning, Hantic Precision Technology, GFUN Industrial Corporation (which is part of the Singtex Group), and Gianta. These companies play essential roles in the supply chains of many internationally recognized brands, placing them at the nexus of labor practices and corporate responsibility.
Supply Chain Connections
The investigation revealed a web of connections linking these four suppliers to 21 potential buyers. Notably, while names of four less relevant buyers were omitted, the remaining 17 included major players like Hitachi, Johnson Controls, Bosch, and Amazon. This extensive network underscores the global nature of the manufacturing industry and compels a closer examination of ethical practices within these supply chains.
Recruitment Fee Abuses
One of the most alarming issues reported is the practice of charging recruitment fees to migrant workers. This often forces them to take out loans, plunging them into financial burdens that can lead to debt bondage. Such practices raise serious ethical concerns about how these workers are treated and the environmental context of their employment, where financial exploitation can install a cycle of dependency and abuse.
Labor Abuses at Gianta
The investigation did not stop at recruitment fees. It revealed a disturbing array of labor abuses at Gianta, including passport confiscation, which restricts freedom of movement, and wage theft, which denies workers their rightful earnings. Further, intimidation tactics and unsuitable living conditions highlight the urgent need for comprehensive reforms in these industries to protect the rights and dignity of workers.
Response from Suppliers and Buyers
Following the release of these findings, Transparentem reached out to all involved suppliers and potential buyers. The response was varied. Notably, all four manufacturers, along with several buyers, indicated plans for action. Reimbursement of recruitment fees was among the primary measures discussed, reflecting a recognition of the accountability needed within these supply chains.
Proactive Measures Taken
Johnson Controls and Hitachi were particularly swift in their response. Within three months, their joint venture announced that they had reimbursed all current workers, alongside several former employees. Other companies, such as Hantic Precision Technology, reported an implementation of a zero-fee recruitment policy and planned reimbursements starting mid-2025. Meanwhile, Gianta committed to substantial improvements, including the removal of curfews and renovations for better living accommodations.
Ongoing Challenges
Despite these positive steps, some companies, including Broadcom, Promise Technologies, Festool, and Sony, did not respond to Transparentem’s inquiries. This silence raises questions about the commitment of some larger corporations to addressing these critical labor abuses within their supply chains.
A Call for Industry-Wide Change
The findings from Transparentem’s report serve as a clarion call for greater accountability and ethical practices across the Taiwanese manufacturing sector. As global consumers become increasingly aware of labor conditions associated with the products they purchase, there is a palpable demand for businesses to reevaluate and reinforce their commitment to ethical sourcing.
While immediate steps have been taken by some companies to rectify recruitment-related injustices, the overarching challenge remains: ensuring that all workers are treated with dignity and fairness, regardless of where they come from or the industry in which they labor.