ESG at Walsin Lihwa

SDGs

Status on Employment

As of the end of December 2022, we have a total of 6,888 employees worldwide (5,444 male, 1,031 female), most are regular employees, 1.0% are contractors (62 male, 9 female), and the percentage of foreign migrant workersNote remained at 5.0% (all male). We do not have any part-time workers.

The Company recruits talent on a merit basis through fair and open channels. We hired nearly 1,531 new employees in 2022 to satisfy the Company's overall operational requirements, creating opportunities for employment and development. Walsin Lihwa has always maintained that employees are the Company's most important asset. A total of 1,105 employees resigned in 2022, which is a turnover rate of 16.0%. Voluntary separation rate was lower than 15% since 2018. When an employee tenders his/her resignation, the human resources unit will verify the resignation and arrange an exit interview to understand the reason for the resignation, urge the employee to remain with the company, and demonstrate care and concern.

2022 Total number and ratio of new and resigned employees

Note:
Recruitment rate = New employees in the current year/Number of employees as of the end of the current year, calculated using denominators based on gender and age groups.
Turnover rate = Number of employees who resigned in the current year/Number of employees as of the end of the current year, calculated using denominators based on gender and age groups.

The company employs local employees in all regions, except in Mainland China, where as required by management needs that the vice president and higher level managers are still mainly from Taiwan.

Number of Managers/Non-Managerial Personnels in Each Region

Note: Managerial positions are the positions higher than section or division chiefs.

Percentage of local management in local headcount

Note:
1. Managers refer to managerial positions at or above the sector level (inclusive), and senior managers refer to managerial positions at or above the division level (inclusive). This year, the proportion of local residents employed as senior management is calculated based on the sector level (inclusive) and above.
2. Local refers to the country where the organization operates (and where the employees work), and is proportional to whether the nationality of the employees is equivalent to the local nationality.

Because our wire and cable as well as stainless steel operations fall in the heavy manufacturing industry category, the workforce at our plants consists primarily of males and therefore the percentage of male workers is higher than that of female workers. Managers are mainly between the ages of 41 and 50; regular employees are mainly between the ages of 31 and 40. Insulated wire & cable and stainless steel are technology and labor intensive industries. In terms of educational background, most managers graduated from college or above (inclusive), while regular employees mainly graduated from senior high school (inclusive) or lower. Factoring in prevalent legal prohibitions of employment of child workers, Walsin Lihwa complies with local labor laws and regulations in the areas where it has business presence and does not employ anyone under 16 years old. Walsin Lihwa Taiwan has 32 employees with mental or physical disabilities, amounting to approximately 1.07% of the total number of employees in Taiwan.

Structure of Managerial Positions & Regular Employees by Age

Structure of Managerial Positions & Regular Employees by Education

Note:
1. The employee structure at the following Walsin Lihwa sites are disclosed: Taiwan: Taipei head office, Yangmei plant, Hsinchuang plant, Yenshui plant, Taichung plant; Mainland China: Walsin China Investment, Dongguan Walsin, Shanghai Walsin, Yantai Walsin, Changshu Walsin, Jiangyin Walsin (Steel Cable), Jiangyin Walsin (Specialty Alloy Materials) , Nanjing Walsin (Real Estate), Nanjing Walsin (Property Management), Nanjing Formosa Trade Center; Malaysia: Walsin Precision Technology Sdn. Bhd. Indonesia: PT. Walsin Lippo, PT. Walsin Nickel Industrial
2. Managerial positions are the positions higher than section or division chiefs.

Structure of Managerial Positions by Gender

Structure of Regular Employees by Gender

Note:
1. The employee structure at the following Walsin Lihwa sites are disclosed: Taiwan: Taipei head office, Yangmei plant, Hsinchuang plant, Yenshui plant, Taichung plant; Mainland China: Walsin China Investment, Dongguan Walsin, Shanghai Walsin, Yantai Walsin, Changshu Walsin, Jiangyin Walsin (Steel Cable), Jiangyin Walsin (Specialty Alloy Materials), Nanjing Walsin (Real Estate), Nanjing Walsin (Property Management), Nanjing Formosa Trade Center; Malaysia: Walsin Precision Technology Sdn. Bhd. Indonesia: PT. Walsin Lippo, PT. Walsin Nickel Industrial
2. Managerial positions are the positions higher than section or division chiefs.

Human Resources Policy

Human Right Policy

Walsin Lihwa complies with the local laws and regulations wherever the company has business presence to uphold employee human and legal rights in consistency with the Universal Declaration of Human Rights of the United Nations, the United Nations Global Compact, the International Labor Organization Convention, and other internationally recognized human rights conventions and standards to friendly, impartially, reasonably, and respectfully treat all its employees including official and temporary employees, migrant employees, interns, contracted workers, and even business partners. Guiding principles are as follows:

▪ Healthy and Safe Work Environment Development

Objectives and Actions
Healthy and Safe Work Environment Development
Measures implemented
The ISO 45001 (Occupational Safety and Health Management System), disasters prevention and other improvement activities are introduced to ensure a safe working environment. In addition to providing a safe and healthy working environment in accordance with the laws and regulations, we have set up special units and committees for occupational safety and health, employed professional doctors and nursing staff, conducted regular education and training on safety and health, fire prevention, etc., and taken necessary preventive measures to prevent occupational hazards and reduce the risk factors in the working environment.

▪ Fair and Reasonable Compensation and Work Conditions

Objectives and Actions
Effectively protect labor rights for the harmony of labor relations, which factors in the fairness of employment, compensation and fringe benefits, education and training, as well as assessment and promotion criteria while effectively responding to and addressing employee complaints to timely prevent employee rights from being compromised.
Measures implemented
Implementation of Work Equality: Comply with the Act of Gender Equality in Employment in order to protect the equal rights of men and women to work. We handle recruitment, screening, employment, distribution, performance appraisal, promotion, education and training, and welfare measures without differential treatment based on gender.

▪ Equal Employment Opportunities Without Discrimination

Objectives and Actions
For the purpose of ensuring employees' equal opportunity in employment, employers are prohibited from discriminating against any employee on the basis of gender (including sexual orientation), race, class, age, marital status, language, thought, religion, political party, place of origin, place of birth, appearance, facial features, and disability.
Measures implemented
Creating a Diverse and Inclusive Culture: We respect internationally recognized basic human rights, do not discriminate on the basis of gender, race, age, marriage, political affiliation, religious beliefs, nationality, etc., encourage the exchange of ideas, value team members, allow our members to feel sincerity and respect, and actively create a diverse and inclusive workplace.

▪ No Employment of Underaged Workers

Objectives and Actions
Comply with the local labor laws and regulations wherever the company has business presence in consistency with the minimum age requirement for employment to refrain from employing underaged workers.
Measures implemented
In order to ensure compliance with corporate social responsibility and ethics, child labor is explicitly prohibited during recruitment operations, and as of the end of December 2022, the total number of employees is 6,888, of which there is no child labor.

▪ No Forced Labor

Objectives and Actions
Comply with relevant labor laws and regulations with due attention to employee attendance to work doing away with forced labor.
Measures implemented
We will not force or coerce any unwilling employee to perform a labor act. The daily and weekly working hours, extended working hours, vacations, special leave and other types of leave for employees are in compliance with the laws and regulations. We also set up a reminder function when employees apply for overtime in the attendance system, and provide overtime pay or compensatory time off after overtime work, and have specialists to review and control the factory working hours on a monthly basis.

▪ Respect for Freedom of Association

Objectives and Actions
Respect employees' basic human rights and, in particular, labor human rights such as organization of labor unions, and ensure harmonious labor relations by providing diverse communication channels.
Measures implemented
Respecting employees' freedom of association and rights to collective bargaining. According to the Taiwan's Trade Union Act, employees have the right to organize and join labor unions.

▪ Privacy Protection and Harassment Prevention

Objectives and Actions
To ensure humane treatment and a healthy and safe working environment.
Measures implemented
Conduct relevant regulatory compliance promotion for new recruits, including sexual harassment prevention, anti-discrimination, anti-harassment, working hour management, and the healthy and safe working environment that ensures humane treatment. Moreover, through the relevant announcements, employees can further understand that they also have the responsibility to avoid the abovementioned workplace violence when they are on duty. Privacy Protection: In the event workplace violence, the company has set the grievance hotline and is committed to protecting employee privacy when they are reporting the case, thereby creating a friendly working environment.

▪ Employee Complaint System and Channel

Objectives and Actions
The Company has set up various communication channels for employee to report problems such as the grievance hotline, grievance mailbox, employee information website, employee platform for discussion, and labor-management meetings.
Measures implemented
The Auditing Office has set up an e-mail address for complaints and a dedicated personnel will handle the complaints: For the prevention and control of sexual harassment, we set up the "Regulations for Establishing Measures of Prevention, Correction, Complaint and Punishment of Sexual Harassment at Workplace" to protect gender equality at work and to provide a working environment free from sexual harassment for employees and employees who comes in contact with us. In the event of sexual harassment, the victim or his or her representative may file a complaint with the Sexual Harassment Grievance Committee, either verbally or in writing. In addition, the company has established relevant regulations in its internal documents for the protection of employees' human rights and set up a complaint channel for employees when their legal rights are violated or improperly treated and cannot be resolved in a reasonable manner.

▪ Assistance to Employees in Maintaining Physical and Psychological Wellbeing and Balance between Life and Work

Objectives and Actions
We provide a variety of activities to care for the physical and mental health of our employees.
Measures implemented
Providing free health checks on a regular basis as well as health management lectures, employee family outings, massage relaxation, cultural, sports, and family day events for employees and their families, as well as employee associations and clubs to facilitate collegial interaction for their balance between life and work.

▪ Regular Review and Assessment of Human Rights Measures to Decrease Related Risks

Objectives and Actions
Through the management practices in the human rights management framework, employees, we are able to reduce human rights risks through our efforts or reduce the impact of human rights incidents through remedial measures for the suppliers, partners, and the environment in which we operate.
Measures implemented
Identify the risks associated with human rights and accordingly develop corresponding measures to effectively implement the Employee Human Rights Policy by policy effectiveness assessment on a regular basis to control and decrease such risks and perfect the protection of human rights related to different issues. Ensure effective implementation of the Employee Human Rights Policy at individual plant sites through contractual binding of suppliers and relevant requirements with sample checks by the Administration Division and Human Resources Division to ensure compliance with the Employee Human Rights Policy to safeguard employees' physical and psychological wellbeing.

▪ Education and Training

Objectives and Actions
We continue to train our employees on human rights protection issues and provide training courses on issues such as business conduct standards, anti-corruption, privacy, safe and healthy working environment, and sexual harassment prevention training courses to create a friendly working environment with equality, inclusiveness, and respect. The content of training related to human rights protection is tailored to local conditions and appropriately adjusted in response to different legal requirements in different regions to ensure that colleagues can fully abide by local laws and regulations when performing their tasks.
Measures implemented
Conduct education and training on human rights protection through meetings with suppliers to ensure human rights protection at suppliers as well as Walsin Lihwa sites: September 2022: (Shanghai Walsin) A total of 12 suppliers participated. October 2022: (Dogguan Walsin) A total of 12 suppliers participated.

Incentivized Compensation System

Walsin attaches importance to employee benefits and upholds the concept of employee profit sharing. We conduct regular market surveys in hopes of providing employees with competitive overall salaries, so that we can attract outstanding talent to join the team of Walsin Lihwa. Walsin Lihwa offers a competitive salary and compensation system. Permanent employees are entitled to:

We comply with relevant local laws and regulations, and strive to establish harmonious labor management relations within the scope of the law.
Starting salaries for fresh-out-of-school employees and foreign national workers in compliance with relevant local laws and regulations.
Reasonable yet competitive total rewards based on the market value of individual professional functions and job contributions to the company.
Employees are rewarded with bonuses based on the Company's business performance, team goal attainment, and individual contribution and performance.
Employees' salaries and compensation are determined by their education, knowledge, skills, professional experience, and individual performance. In no way does gender, race, religious belief, political affiliation, marital status, or membership in a union play a part in these decisions.
Raises are planned each year based on the Company's profitability and comparison with results of the salary survey.
Promotions are planned each year based on employees' performance and development potential, organizational requirements, and employees' aptitude and career advancement intentions.

Number of non-managerial, full-time employees in Taiwan, their average salaries and differences from the previous year

Note: Non-managerial employees refer to all employees (excluding managers), under the same scope of managers reported by the Company and disclosed in the annual report of the Annual Shareholders' Meeting

The times of average remuneration differences by gender and position in 2022 are tabulated as below

Note:
1. The remuneration systems at the following Walsin Lihwa sites are disclosed: Taiwan: Taipei head office, Yangmei plant, Hsinchuang plant, Yenshui plant, Taichung plant; Mainland China: Walsin China Investment, Dongguan Walsin, Shanghai Walsin, Yantai Walsin, Changshu Walsin, Jiangyin Walsin (Steel Cable), Jiangyin Walsin (Specialty Alloy Materials), Nanjing Walsin (Real Estate), Nanjing Walsin (Property Management), Nanjing Formosa Trade Center; Malaysia: Walsin Precision Technology Sdn. Bhd.
2. Managerial positions are the positions higher than section or division chiefs.