An unpaid wage promised in a contract concerns an existing right; a union demand for higher future wages seeks a change in working conditions. Taiwan's Act for Settlement of Labor-Management Disputes, Articles 5–7, distinguishes these categories, and Article 53 generally bars a strike over a dispute about existing rights. A US or Japanese parent should establish what the Taiwan subsidiary actually agreed to before treating every wage demand as a potential strike dispute.
Mediation and the vote are separate requirements
Either party may apply for mediation with the local authority where the employees provide their services. The application identifies the parties, the matters to be mediated and the selected mediation method. The authority appoints a mediator or establishes a mediation committee according to the method requested by the applicant. A committee proposal accepted and signed by both sides settles the mediation; rejection means mediation fails. Act for Settlement of Labor-Management Disputes, Articles 9–11 and 19–21
Article 53 says dispute action cannot generally proceed until mediation has failed. Article 54 imposes another condition: a union cannot declare a strike or set up a picket line without a direct, secret vote approved by more than half of all union members. That denominator is the full membership, not the ballots cast. A passed vote does not itself establish that mediation failed or that the proposed action is otherwise lawful. The statute also restricts strikes by certain workers and requires necessary service terms for specified public-interest sectors; sector-specific conditions matter before either side sets an operational plan. Act for Settlement of Labor-Management Disputes, Articles 53–54
There is a specific Article 53 route when the central authority has found an employer's breach of Labor Union Act Article 35 or Collective Agreement Act Article 6(1) through an adjudication decision. Its existence should not be mistaken for a general permission to strike over every existing-rights claim. During mediation, arbitration or adjudication, Article 8 also restricts dispute-related shutdowns, stoppages, dismissals and other adverse employer action, while restricting strike or other dispute action by labor. Act for Settlement of Labor-Management Disputes, Articles 8 and 53
Parent-company instructions can create a local record
Taiwan's Labor Union Act, Article 35, prohibits an employer or a person exercising management authority for it from penalizing workers for forming or joining a union, taking part in union activity or collective bargaining, or supporting dispute action. It also prohibits improper interference with a union's formation, organization or activities. Dismissals, demotions and pay cuts made in violation of that article are invalid under its second paragraph.
The subsidiary should keep the wage terms, collective agreement, union correspondence, mediation application and record, management approvals, and the dates and stated reasons for any staffing or pay decision. Keep the union's voting records distinct from the company's own records: Article 54 assigns the vote to the union. A parent company's cost target does not replace the Taiwan employer's explanation of a particular decision. These are practical recordkeeping steps; they do not assume that every proposed adjustment is unlawful.
A Taiwan labor lawyer can identify whether the claim concerns an existing right or a proposed change, review the mediation record and proposed response, and assess personnel decisions against the union protections. For related employment issues, see Taiwan severance law.
For advice on a Taiwan subsidiary's dispute, contact attorney Wei Tseng (曾雋崴) of Hovering International Law Firm at wei@hoveringlaw.com.tw. Office: 7F-2, No. 35, Sec. 1, Chengde Rd., Datong Dist., Taipei City 103, Taiwan.
Sources
Checked October 1, 2026: Act for Settlement of Labor-Management Disputes, Articles 5–11, 19–21 and 53–54; Labor Union Act, Article 35.
Frequently Asked Questions
- Does a union's strike vote alone permit a strike?
- No. Under the Act for Settlement of Labor-Management Disputes, a dispute generally must first reach unsuccessful mediation. A union also needs a direct, secret vote approved by more than half of all its members before it may declare a strike. Statutory restrictions and exceptions must be checked.
- Is the vote threshold a majority of ballots cast?
- No. Article 54 requires approval by more than half of the union's entire membership, not merely a majority of those who vote.
- May a Taiwan subsidiary dismiss employees for supporting the union?
- The Labor Union Act prohibits adverse treatment for union membership, collective bargaining, and participation in or support for dispute action. The facts and reason for any personnel decision need separate review.
This article provides general information and is not legal advice on any individual matter.
