Taiwan weekly legal update: China Airline violated Free-Rider Clause

Taiwan weekly legal update: China Airline violated Free-Rider Clause

Administrative Court: China Airline violated the Free-Rider clause.

The Taipei High Administrative Court has delivered the judgment concerning the strike of flight attendants. The Taoyuan Flight Attendants Union (TFAU) initiated a strike on 23 June 2016, over the overtime work and harsh labor conditions. The TFAU and China Airline held a collective bargaining on 25, over the outstation allowance. The China Airline promise to improve the condition of outstation allowance and these conditions only enjoyed by the members of the union (TFAU). However, the members of China Airline Employees Union (CAEU) were granted the same condition of outstation allowance as the TFAU by China Airline. Thus, the Ministry of Labor adjudicated that China Airline violated the collective agreement [the Free-Rider clause] between TFAU. The China Airline filed a suit against the Ministry to Taipei High Administrative Court for revoking the adjudication.

The Court held that the collective agreement between TFAU and China Airline owns a contract-binding duty. And it is an achievement of TFAU that shares only between the union members which is the very spirit of “Free-Rider clause”. However, China Airline granted the same condition of outstation allowance to the CAEU which has never initiate strike or bargain, violated the Free-Rider clause. And causing a lowering-rate of new recruits joining the TFAU. The Court holding that China Airline indeed violated the collective agreement and Labor Union Act §35(1)(5)—Improper influence.

However, the Court held in its judgment concerning the collective bargain. The Court held that the collective agreement between TFAU and China Airline was not a proper “Collective Agreement” under the law. Thus, the parties were only binding by its contractual duty which has been criticized for its unusual reasoning of the Court.


Taiwan aiming to accelerate financial law reform.

The National Development Council has taken efforts to initiate “financial law reform” and “public discussion platform for new regulations” since last October. The Council described that since Taiwan has been critiqued for its late outdated, rigid regulations on financial industries, this platform is aiming to collect opinions from every aspect of industries. One with ideas or comments on new policies or law reforms can upload post their suggestions onto the platform and the Council would respond and take necessary measures to these reforms. The Council has also started to initiate the financial law reforms from every aspect. From now on, the Ministries of Executive Yuan would have to re-evaluate the post regulations and shall deliver monthly evaluation report.

Since last October, the Executive Yuan has done several reforms of regulations and law. The following are the brief introduction of these reforms:

1. The FSC has recognized Venture Capital as a financial related business and allowing banks to have VC investment. The FSC also allows online insurance and opening bank account through the Internet.
2. The Ministry of Finance released several tax incentives to the small business who adopted Mobile-Pay instruments. The FSC also allows credit cards to connect with Mobile-Pay.
3. In the stock market, the FSC allows “E-commerce” be listed on the stock market. In order to solve the problem of funding which has been bothering investors for a long time. The MOST allow government researchers to serve as the director of venture company and removes the limits on the percentage of technical value share for government researchers.

As for the innovation industries, the National Development Council has also put efforts to improve the investment environment. The Council described that the policy toward innovation industries is “negative list”, and the Council would support all the innovation industries who wish to invest Taiwan.


Anti-Money Laundering Policy for Certified Public Accountant.

The FSC has released a series of regulations for public accountants to comply with the anti-money laundering and counter-terrorist policy since last June. And the FSC aiming to take the evaluation of Asia-Pacific Group on Money Laundering (AGP).

The FSC has set up an online section: anti-money laundry and counter-terrorism for the public to understand the regulations. Several workshops and training programs were held for the public accountants to understand the legal compliance. The FSC would further establish an Anti-Money Laundering Office in Executive Yuan to coordinate the works between FSC and public accountants.




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