People First, Well-being Always

Human Rights Policy Declaration

TECO has established a formal policy to manage large-scale workforce reductions, which includes clear provisions for minimum consultation and notice periods. In accordance with Article 9, Chapter 2 of the Collective Agreement at the Taiwan headquarters, employment contracts may only be terminated after thorough efforts to coordinate and reassign employees across departments have been exhausted. This reflects the company’s strong commitment to minimizing involuntary terminations.
If layoffs become necessary, TECO strictly complies with relevant regulations, including Articles 11 and 16 of the Labor Standards Act, ensuring either advance notice or severance payment, as well as adherence to the legal notification and consultation requirements under the Act for Worker Protection in Mass Redundancy. These measures uphold employee rights and ensure transparency.

In addition, TECO commits to fully complying with the minimum notice period requirements stipulated by local laws in each operating region during times of operational change, and provide at least 60 days’ advance notice to employees and the relevant government authorities in accordance with legal requirements, and offer the necessary explanations and assistance. 
Overall, the company adheres to a “prevention first, consultation first, and reassignment first” principle. TECO actively strengthens communication and engagement mechanisms with labor unions and employees to reduce uncertainty and mitigate the impact of workforce adjustments.

Equal Treatment and Opportunity

In 2024, the total number of regular employees at global core business production and sales sites was 5,259; the number of contract and part-time employees was 658.
The scope of this report covers 5,917 individuals; parent company headcount: 2,494 (as of December 31, 2024, including contract and part-time employees).

• Data disclosure scope includes: (5259/5259) Number of regular employees in global core business operations including production and sales sites / Number of regular employees in global core business operations including production and sales sites.
• Definition of junior management level: Supervisors, and managers.
• Definition of top management level: Directors, vice presidents, and business group general managers.

Women 31.4% in 2024; targets set for 2025 in management and STEM

Talent Career Development

Talent Development Programs

Cultural education
Since 2023, the Company has been actively planning and implementing various Diversity, Equity, and Inclusion (DEI) initiatives, including:

• Establishment of the WAO! (TECO Women’s Ability Organization) Club: The “WAO!” club was founded to promote workplace equality and encourage female employees to take on responsibilities. Through a series of diverse lectures and training programs, the initiative supports the personal and professional growth of women employees.
• DEI Awareness Education and Training: In 2023 and 2024, three DEI courses were introduced and designated as mandatory annual credits for all employees. These courses have also been incorporated into managerial KPI indicators, aiming to enhance gender equality awareness and foster an inclusive mindset among employees, thereby building a friendly and respectful workplace environment.
• DEI Series Activities: Activities such as the “DEI Slogan Contest,” “Taste of Mom’s Home Cooking,” and the “What Is DEI?” video project were organized to strengthen employees’ recognition of and engagement with DEI values.

Through these efforts, the Company has received multiple honors, including the 2024 Womany “DEI Vision Award – Gold,” the “Taipei City Gender Equality Certification – Silver,” and the “DEI Friendly Mature Workforce Employer Award.”

Talent Retention

•           The data disclosure scope covers 100% of the core business under regulatory management.

• Internal recruitment: 37.8% manufacturing-related vacancies filled internally; male-to-female ratio 2.33:1; 37.24% aged 30–39 as the main composition.
• External recruitment: Compared to 2023 new employees, male employees still accounted for the majority, with 226 males and 129 females, a male-to-female ratio of 3:2. Although there were more male employees, the proportion of female employees increased compared to the past. In terms of age distribution, employees aged 20–50 accounted for the majority, among which the 40–50 age group had the largest number, indicating that the middle-aged group became the main labor force in 2024.
• Departing employees were statistically categorized by gender: males accounted for 67.26%, females accounted for 32.73%; categorized by age into three groups: under 30, 30 to 50, and over 50, with proportions of 25.56%, 62.78%, and 11.65% respectively. The 30 to 50 age group accounted for the highest proportion. Therefore, the Company will plan a knowledge transfer mechanism in the future to remind departments to establish internal SOPs to prevent the impact of personnel turnover, and improve the workplace experience to enhance retention willingness.

Compensation Plan 

Link between sustainability KPIs and performance

Working Conditions and Communication

TECO demonstrates its commitment to labor-management relations through its Industrial Union, established in 1974, with a collective agreement first signed in 1981 under the Labor Union Act. In 2023, a revised agreement—effective until February 20, 2026—was finalized after 13 formal meetings over four years, exceeding legal requirements and covering 100% of union members (1,983 employees; 75–100% revenue coverage). The union governance body, elected every four years (11 directors, 3 supervisors), engages members via annual assemblies, semiannual top management meetings, and monthly board sessions with company participation. Union offices at all plant sites support continuous communication. Aligned with ILO Conventions and the Labor Standards Act, TECO provides 60-day advance notice for major operational changes, supported by transparent communication. Annual employee recognition programs further strengthen engagement and relations. 

Employee Engagement 

Employee Satisfaction Survey 

TECO conducts an annual employee opinion survey covering four dimensions—satisfaction, engagement, happiness, and work stress—across 13 aspects, including leadership, teamwork, innovation, digital awareness, benefits, performance, career development, and work-life balance. In 2024, wording was refined to align with Diversity, Equity, and Inclusion (DEI) principles while maintaining survey structure and comparability. The survey covers all employees at TECO’s major plants in Taiwan, the United States, and mainland China, with results provided to plant-level and above department heads across business groups. Findings are incorporated into annual training and performance review discussions led by the Human Resources Center to drive improvement actions. 

1. In September 2024, TECO conducted an anonymous online employee opinion survey across domestic and overseas affiliates, covering four dimensions: satisfaction, engagement, happiness, and work stress. Key indicators include job satisfaction, role clarity, workplace happiness, and stress levels. Analysis identified career development, engagement, and work stress as lowerscoring areas, with stress showing the largest decline, attributed to innovation-driven changes and decentralized management. The global response rate was 36% (parent company: 58%, up 2% YoY), with 62.9% of employees expressing strong recognition of TECO. The Company aims to raise global recognition to 70% by 2025, with results integrated into HR-led improvement actions.

2. Issues identified and improvement measures for overseas affiliates are as follows: 

• Issues identified: Employees at overseas affiliates generally reported higher levels of work stress, particularly mentioning issues related to compensation, benefits, and engagement, but have not perceived significant improvement.
• Improvement measures: Strengthen internal communication; it is recommended to review and gradually adjust the compensation structure annually. Improve and optimize employee benefit programs so that employees can be properly cared for outside of work. 

 Occupational Safety and Health Commitment

Occupational Safety and Health 

Environmental Safety Concept: “Pollution-free Environment, Zero Occupational Accidents” TECO has established a dedicated Safety and Health Team under the Office of the President, responsible for company-wide EHS policy formulation, program oversight, and internal supervision. In addition, each plant has its own EHS unit to ensure effective implementation and continuous improvement of the occupational health and safety management system.  TECO has established an environmental and occupational safety and health management system based on ISO 14001 and ISO 45001 (Environmental Management, and Occupational Safety and Health Management Systems) and promotes the operation of its management system model. TECO has a total of 15 production sites, all of which have obtained ISO 14001 environmental management system certificates, demonstrating the Company’s emphasis on environmental governance. Among them, 10 sites have obtained ISO 45001 occupational safety and health management system certificates; the remaining 5 sites (Jiangxi TECO, Jiangxi TECO AC, Wuxi TECO Electro Devices, Shen Chang Electric, and Westinghouse USA) have not yet completed the certification of this system. However, they have implemented self-management and internal audits in accordance with the unified Group environmental safety and health management policy and internal control mechanism to continuously monitor their environmental and occupational safety risks and ensure operational safety and compliance. In addition, three sites—including Chungli Plant, Hukou Plant, and TESEN—have also obtained CNS 45001 (formerly TOSHMS) national occupational safety and health management system certificates, further strengthening compliance with local regulations and standards. The Occupational Safety and Health Committee (with more than one-third of members being labor representatives) convenes quarterly (January/April/July/October) to carry out occupational safety and health communication and management exchanges. In accordance with the ISO 45001 Occupational Safety and Health Management System, the 90 following are implemented： 

Occupational Injury Statistical Data 

According to internal regulations, occupational injury incidents are classified into major, moderate, minor, and near miss levels. In 2024, there were no employee fatalities due to occupational injuries. For contractors, there was 1 fatal occupational injury case involving 3 people.

Major Occupational Safety Accident Handling Procedure