Control Yuan: Government Must Reform Labor Laws to Meet International Standards Amid Forced Labor Allegations in Textile Industry

In a report released today, Control Yuan members Chi Hui-jung and Wang Yu-ling addressed concerns raised by the U.S.-based organization Transparentem, which identified nine Taiwanese textile suppliers involved in forced labor practices, including the charging of exorbitant recruitment fees and passport confiscation.

Investigations revealed that while Taiwan’s textile industry is globally recognized, 95% of these firms are small-to-medium enterprises (SMEs) struggling with human rights compliance. The Control Yuan emphasized that after previous manufacturing giants faced U.S. withholding release orders (WROs), this serves as a critical warning for the textile sector to improve its industry transformation and human rights protections.

Regarding labor inspections, the members noted that current enforcement is often superficial. Penalties for excessive overtime—sometimes reaching 134 hours per month—remain negligible, ranging from NT$20,000 to NT$150,000, failing to deter large enterprises. Furthermore, many forced labor allegations were closed without substantial investigation, lacking coordination with judicial authorities.

The Control Yuan urged the Ministry of Labor to integrate international forced labor indicators into standard inspections. Additionally, they highlighted that Taiwan’s practice of allowing service fees to be charged to migrant workers contradicts international fair recruitment principles. While the government aims to achieve zero-fee recruitment within three years, the resulting financial burden on SMEs requires comprehensive legislative review and state-assisted transition plans.

Finally, the members pointed out that the 1955 hotline currently lacks the authority to provide concrete remedies or compensation. They advocated for the establishment of independent, credible third-party grievance mechanisms to replace internal systems that risk being biased. To maintain global competitiveness, Taiwanese firms must pivot from low-price competition to a model built on quality and human rights compliance.