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Social Responsibility

Human Rights Due Diligence and Mitigation

According to UN “Universal Declaration of Human Rights” and “United Nations Global Compact” TECO develops “Declaration of Human Rights” to manage internal HR policies. Human right issues cover parent company, subsidiaries, and suppliers. Document is open for public access on CSR website:

Issues of Concern	Target topics	Risk assessment	Stakeholders	Mitigation measures	Implementation results
Safe and healthy work environment	Formulation of health care plans for maternal employees	Assessments are carried out based on work environment and operating hazard evaluation charts	Female employees	Task adjustment based on risk communication and consensus, provision of breastfeeding facilities and exclusive parking spaces	5 employees had protected status in 2020. 3 employees currently have protected status in 2021. The ratio of female employees has been increased from 27.7% to 29.3% in the last three years.
Prohibition of forced labor	Overtime work is not encouraged; rest times of employees are respected	HR and Occupational Safety track overtime statistics on a monthly basis	Employees	It is announced in labor-management meetings and quarterly meetings that overtime work is not encouraged	Overtime rates are maintained between 3%-11% and controlled adequately during on- and off-seasons.
Prohibition of forced labor	Overload hazard risk assessment (every three years)	Ratio of employees at overload risk levels 3 and 4: 0.04%	Employees	Establish overload hazard preventive plan, perform consulting health education, operation adjustment according to the assessment result and track improvement.	Overload risks are controlled adequately with a goal of 0 for overload risk levels 3 and 4.
Prohibition of child labor	Supplier Code of Conduct: Signing of a Pledge to Human Rights and Environmental Sustainability	Compilation and audits in the context of supplier evaluation standards	Employees Supplier	Audits of employees aged 15 and above in accordance with relevant laws starting from recruitment	Controlled adequately without risks
Elimination of discrimination	Focus on the spirit and future development of the Modern Slavery Act	Examination of the living and work conditions of foreign workers to rule out unequal treatment	Migrant workers	All foreign workers have official employee status	Controlled adequately without risks
Freedom of association and right to collective bargaining	Guarantee of the right to form labor unions and convene labor-management meetings	Guarantee that employee grievance channels are secure and unobstructed, regular employee satisfaction surveys	Employees	Monthly Director and Supervisor meetings are convened to discuss various employee-related issues. Company representatives attend these meetings to communicate with the labor representatives.	Percentage of union-protected employees: 90.38%

The President convenes OSH Committee meetings every quarter. The health of maternal employees is examined on a regular basis. The Company is firmly committed to preventing ergonomic hazards, excessive workloads, and unlawful infringements.
Estimated number of people under overload hazardous risk assessment: Remaining people levels 3 and 4 after improvement: 1 person/average total number of people of 2327 people=0.04%
Employees include indigenous people and new immigrants.
Data covers only Taiwan sites, with coverage rate of 51.46%

Disclosure of one non-gender harassment incident

Two reprimands were issued upon review in accordance with employee work rules.

incident

It was determined that this incident should be categorized as verbal bullying. The chairperson educated top executives in a “Chief of Staff” meeting and anti-bullying education is provided internally for all staff members.

Corrections

During the quarterly employee meeting, the chief officer of safety and health again propagated the four occupational safety rules (incl. anti-bullying) and informed all participants of available grievance channels. Relevant information was also included in the internal publication for employees (TECO Magazine Issue 352) to reinforce relevant concepts.

The Group has stipulated a Zero Workplace Violence Policy and a Plan for the Prevention of Unlawful Infringement in the Performance of Duties. TECO affiliates have formulated other related internal regulations (Wuxi TECO, Wuxi TECO Precision, TECO Electro Devices, TWMC)

Labor union and labor-management meetings

TECO set up its own labor union in July 1974 to pursue higher work efficiency, improved labor conditions, and open communication of opinions of labor and management. TECO further signed a collective agreement with union representatives on December 28, 1981 which safeguards the rights and interests of all employees pursuant to the Labor Union Act and the Collective Agreement Act to safeguard the rights and interests of both sides and ensure harmonious relationships between labor and management. The union convenes annual general meetings for the election of representatives, 11 Directors and 4 Supervisors by all members in attendance. Monthly Director and Supervisor meetings are convened to discuss various employee-related issues. Company representatives attend these meetings to communicate with the labor representatives. Labor union offices have been set up in plant areas to give employees a chance to communicate and exchange opinions with union representatives during working hours. TECO also organizes semi-annual conferences that serve the purpose of direct communication between union Directors and Supervisors and the president. In addition, model workers (one for every 100 employees) are selected and recognized on an annual basis. A total of 20 model workers were selected in 2019. All business activities of TECO strictly conform to the Labor Standards Act. Employees are notified of major operational changes 7 days in advance.

Labor union

Established in 1974
Collective agreement signed in 1981 and accepted by all TECO staff members.
General union meetings are convened on an annual basis for the election of union directors and supervisors.
Conferences convened by the Chairman, President, union Directors and Supervisors are held on a semi-annual basis.
Monthly Director and Supervisor meetings are convened to discuss various employee-related issues. Company representatives attend these meetings to communicate with the labor representatives.

Committees	Ratio of labor representatives
Plant labor-management meetings	50%
OSH committee	33%

Number of employees of the Group under protection of unions and percentage 90.38%

Data covers 71.0% of total TECO Group subsidiaries by renune, There are total of 3,221 people qualitied to join the unions. 2,911 (90.38%) people joined and 9.62% of the employee or contractor not joining unions.
TECO has established various complaint filing channels. For personnel not joining unions, their rights and interests can be protected via TECO’s system, and they may also report to the labor-management negotiation representatives in order to obtain protection for their rights and interests.

Contact window: CSR Task Force/Jay LC Huang, Special Assistant, csr@teco.com.tw