Treasure Talents

Based on the "people-orientated" philosophy, Pou Chen believes that employees are one of the most important assets of the Group. Hence, the Company sets up a systematic and well-established talent development mechanism, and holds team-building activities to build team cohesion as to let employees have a better understanding of the Company and its core values, “Professionalism, Dedication, Innovation, Service”. In order to attract talents, the Company provides quality jobs through diversified channels, good compensation, comprehensive training, and flexible career path for its employees. And this enables the Company to recruit and to retain the best talents for its positions. In addition, the Company deploys performance appraisal reviews for the purpose of aiming at employees’ personal development with the objective of strengthening the competitiveness of the Company’s human resources.

Respect Employees’ Right

Pou Chen is committed to the implementation of the principles of fairness and equality and human rights policy in accordance with local laws at each operation site, the Group's "Code of Conduct", and international human rights standards, including "UN Universal Declaration of Human Rights" and "ILO Declaration on Fundamental Principles and Rights at Work" to connect with international trends of requirements.

Pou Chen strives to provide a safe, healthy and friendly working environment to its employees as well as to promote harmonious labor/management relations. To protect the rights of all employees, the Company follows applicable laws and regulations of operation and its “Code of Conduct”. None of the Company’s employees shall be subject to any discrimination in employment on the basis of gender, race, religion, age, disability, sexual orientation, nationality, political opinion, social status or ethnic origin. Relevant management principles are also realized in the employment, compensation, benefits, promotion, discipline, and termination or retirement. In the meantime, no use of child labor and forced labor is strictly enforced. The Company recognizes and respects the right of employees to freedom of association and collective bargaining. The percentage of total employees covered by collective bargaining agreements within the Company is approximately to 93%. The Company will strive to further foster labor harmony, to increase team cohesion and to continuously improve its operating efficiency.

Pou Chen continues to strengthen the transparency in its production conditions. Since 2011, the Company has taken the initiative to accept Fair Labor Association’s (FLA) Sustainable Compliance Initiatives (SCI) assessment for designated regions and factories each year. Pou Chen will adopt corrective measures according to the suggestions on audit reports and regularly provide feedback with action plans, and will systematically and periodically receive Human Rights assessment and monitoring from NGO groups. The scope of FLA’s SCI assessment encompasses Pou Chen’s major production facilities. All audit reports are available at FLA’s official website. Below are the audit reports and corrective action plans in recent three years.

Meanwhile, in adhere to the spirit of human rights advocated by international organization and achieve the goal of effectively terminating forced labor, Pou Chen has signed the Commitment to “Responsible Recruitment” jointly promulgated by Fair Labor Association (FLA) and American Apparel & Footwear Association in November 2019 for the continued day-to-day promotion and advocacy of human rights, which sets out that:

(1) No workers pay for their job.
(2) Workers control of their travel documents and have full freedom of movement.
(3) All workers are informed of the basic terms of their employment before leaving home.

Upholding the above-mentioned principles, Pou Chen incorporates Responsible Recruitment practices in its business operations, and ensures that there is no forced labor through its internal audit mechanism.

Competitive and Fair Compensations System

Pou Chen sees employees as its greatest asset. To attract, inspire, and retain quality personnel, the Company provides attractive and competitive compensation conditions. The Company’s salary standard is based on an employee’s academic background and experiences, position, professional, technical competencies. The Company also uses an employee’s attitude, demonstration of professional competency, and overall performance as the basis to incentivize an employee. Besides, the Company regularly reviews the remuneration policy to ensure a competitive advantage in its compensation standards. The Company also ties performance management with differences in rewards and bonuses to recruit and to retain high-performing talent.

Besides performance bonuses given according to work performance in each month, to reward employee contributions and to inspire their motivation for work, the Company also allocate a certain ratio of earnings as year-end bonus and employee incentives based on the year’s profitability, so that employees can also share the Company’s management results.

Occupational Safety and Health Management

Other than complying with the relevant laws and regulations of the respective jurisdictions of operation as well as customers’ requirements, Pou Chen has also formulated a series of management procedures based on the international occupational safety and health management system standards, and Fair Labor Association’s “FLA Workplace Standards". In 2022, footwear factories that have implemented occupational safety and health management system and passed the third-party accreditation accounted for 58% of the total.

“Environmental, Energy, and Safety and Health Committee” has also been established at each factory and administration center of Pou Chen. The committee convenes regularly, and adopts a fixed-organizational method in which each responsible unit will review management tasks regarding safety and health. By implementing various principles and undertaking safety and health management at the factories, and through establishing a safety and health management performance system to execute and follow-up and an online-based abnormal incident management system, the Company is able to adopt data analytics to facilitate and focus on prevention of material risks.

Pou Chen's “Environmental, Energy, and Safety and Health Committee Management Procedures” stipulates that each committee needs to comprise at least seven members, including a Chairman, a head secretary, and a secretary, as well as at least four members. The Chairman has to be the highest-ranking manager or a deputy assigned by the highest-ranking manager in each factory. This is a regular position that cannot be alternated other than during extenuating circumstances. The head secretary shall be served by SD Manager, while the secretary position shall be assumed by the head of the Environmental, Safety, and Health Management (ESH). If no fixed ESH role has been assigned in a facility, the secretary position shall be assumed by a personnel who executes ESH-related tasks. Head secretary and secretary positions are regular positions that cannot be alternated other than during extenuating circumstances.

Factory ESH committee members will be appointed or elected by managers and employees from each facility. At least 50% of the four members need to be local employees, and members shall be re-appointed or re-elected at least every two years. If vacancies arise from resignation or reallocation of committee members, the vacant seats need to be filled within one month. Except for the management class and the dedicated window, the rest of members of the Environmental, Energy, and Safety and Health Committee are representatives of workers, accounting for approximately 80%. The management class continues to focus on relevant issues and track them through the ESH committee.

Precautionary Measures for Workplace Health and Safety

Benefits Measures and Pension System

Employee Benefits Measures

Pension System

(1) Pou Chen adopted the "Employment Retirement Rules" for the purpose of providing care for employees after retirement
      promoting employee relations and increasing work efficiency.
(2) The "Employee Retirement Rules" complies with Article 53 to Article 58 of the Labor Standards Act.
(3) Pou Chen is subject to the pension system under the Labor Standards Act, categorized as defined benefit pension plans,
      and has established a Supervisory Committee of Labor Retirement Reserve in accordance with the Act. The Company’s
      asset value of its retirement benefit plan and present value of the obligation from defined pension plans are calculated by
      certified actuaries. In 2022, the Company set aside accrued pension liabilities for 1.21% of total employee salaries,
      including 2% of the total employee salaries as the pension fund deposited monthly into the Company’s designated account
      at Taiwan Bank. According to Labor Standards Act 56-2, the Company also calculated the pension fund deposited into the
      Company’s designated account at Taiwan Bank to confirm the amount is fulfill to pay the retirement pension for employee
      who is qualified to retire in 2022.
(4) According to the Labor Pension Act, employees hired before June 30, 2005 and remained employed as of July 1, 2005 may
      choose to continue to be subject to the pension rules under the Labor Standards Act, or be subject to the pension system
      under the Labor Pension Act and retain their seniority accrued prior to the applicability of the Labor Pension Act.
      Employees hired after July 1, 2005 shall be solely subject to the pension system under the Labor Pension Act.