Giant Hit by US Goods Seizure Over Labor Rights; Control Yuan Urges End to "Cheap Migrant Labor" Mindset
Giant Group faced a US CBP Withhold Release Order last year due to forced labor concerns. Taiwan's Control Yuan pointed out a severe gap between domestic labor laws and international standards, urging the government to act and companies to abandon the "cheap labor" mindset.
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- 📰 Published: April 23, 2026 at 15:19
- 🔍 Collected: April 23, 2026 at 15:32 (12 min after Published)
- 🤖 AI Analyzed: April 23, 2026 at 15:44 (12 min after Collected)
Central News Agency
(CNA Reporter Wu Shu-wei, Taipei, 23rd) Bicycle manufacturer Giant Group faced a Withhold Release Order (WRO) from the US Customs and Border Protection (CBP) last year due to labor rights issues. The Control Yuan passed an investigation report pointing out the gap between Taiwan's labor human rights regulations and international standards, urging the Ministry of Labor to review and improve. Control Yuan member Wang You-ling stated today that companies can no longer harbor a "cheap migrant labor" mindset, as recruitment costs must be borne by the employer.
Control Yuan members Wang You-ling, Lai Chen-chang, and Chi Hui-jung held a press conference this morning for the investigation report titled "The Impact of the First US CBP Forced Labor WRO on Manufacturing on Our National Image." The Control Yuan passed the report yesterday and has formally requested the Ministry of Labor and the Ministry of Economic Affairs to review and make improvements.
Wang You-ling noted that the company whose goods were seized was reported by foreign media as early as June 2024 for suspected forced labor. Although the Ministry of Labor monitored public sentiment and tasked local governments with inspections, they concluded "no violations found" based solely on local government responses. They failed to establish further review or verification mechanisms, showing a lack of sensitivity to identifying forced labor risks.
Wang explained that the current system relies primarily on existing domestic labor laws for judgment and has not fully adopted the International Labour Organization's (ILO) forced labor indicators as standards for risk identification and auditing. This creates a gap between domestic "legality" and international "compliance requirements"—such as debt bondage, wage deductions, and living conditions—highlighting that there is room to strengthen the labor human rights governance systems of both enterprises and authorities.
Lai Chen-chang stated that the forced labor issue is a new challenge in US-Taiwan trade beyond tariffs. The company whose goods were seized is actually considered a model student in labor practices domestically, but being targeted internationally reveals a gap between Taiwan's standards and those abroad. Authorities should align with international standards, and the government must take responsibility for amending laws and educating, rather than leaving the burden solely on companies.
Chi Hui-jung explained that practices causing this huge gap include "debt bondage." Many migrant workers borrow large sums from brokers to work in Taiwan, resulting in continuous wage deductions in their first year to repay debts. This is strictly prohibited under international laws, but Taiwan lacks strict controls. Secondly, Taiwan allows brokers to deduct about NT$1,500 to NT$1,800 in service fees monthly from workers' wages, which also violates international standards.
Chi pointed out that costs such as flights, brokers, and medical exams for migrant workers coming to Taiwan are borne by the workers themselves. However, international standards dictate that employers must pay these costs. As Taiwan heavily relies on international trade, if companies want to do business globally, they must absolutely abandon the mindset of importing cheap labor. Migrant workers are actually not cheaper, because if calculated according to international human rights standards, the implicit costs of hiring them are high.
Regarding Giant Group's current situation, Chi mentioned that Giant has hired lawyers to communicate with CBP, refunded worker fees, and relocated dormitories. However, the CBP WRO has not yet been lifted. The hurdle is CBP's requirement for Giant to establish a "third-party grievance mechanism with external participation." The company originally hoped the government's 1955 hotline would satisfy this need, but the government clarified that 1955 is merely a reporting and referral platform, dashing the company's hopes and forcing them to build their own compliance mechanism to resolve the issue.
(CNA Reporter Wu Shu-wei, Taipei, 23rd) Bicycle manufacturer Giant Group faced a Withhold Release Order (WRO) from the US Customs and Border Protection (CBP) last year due to labor rights issues. The Control Yuan passed an investigation report pointing out the gap between Taiwan's labor human rights regulations and international standards, urging the Ministry of Labor to review and improve. Control Yuan member Wang You-ling stated today that companies can no longer harbor a "cheap migrant labor" mindset, as recruitment costs must be borne by the employer.
Control Yuan members Wang You-ling, Lai Chen-chang, and Chi Hui-jung held a press conference this morning for the investigation report titled "The Impact of the First US CBP Forced Labor WRO on Manufacturing on Our National Image." The Control Yuan passed the report yesterday and has formally requested the Ministry of Labor and the Ministry of Economic Affairs to review and make improvements.
Wang You-ling noted that the company whose goods were seized was reported by foreign media as early as June 2024 for suspected forced labor. Although the Ministry of Labor monitored public sentiment and tasked local governments with inspections, they concluded "no violations found" based solely on local government responses. They failed to establish further review or verification mechanisms, showing a lack of sensitivity to identifying forced labor risks.
Wang explained that the current system relies primarily on existing domestic labor laws for judgment and has not fully adopted the International Labour Organization's (ILO) forced labor indicators as standards for risk identification and auditing. This creates a gap between domestic "legality" and international "compliance requirements"—such as debt bondage, wage deductions, and living conditions—highlighting that there is room to strengthen the labor human rights governance systems of both enterprises and authorities.
Lai Chen-chang stated that the forced labor issue is a new challenge in US-Taiwan trade beyond tariffs. The company whose goods were seized is actually considered a model student in labor practices domestically, but being targeted internationally reveals a gap between Taiwan's standards and those abroad. Authorities should align with international standards, and the government must take responsibility for amending laws and educating, rather than leaving the burden solely on companies.
Chi Hui-jung explained that practices causing this huge gap include "debt bondage." Many migrant workers borrow large sums from brokers to work in Taiwan, resulting in continuous wage deductions in their first year to repay debts. This is strictly prohibited under international laws, but Taiwan lacks strict controls. Secondly, Taiwan allows brokers to deduct about NT$1,500 to NT$1,800 in service fees monthly from workers' wages, which also violates international standards.
Chi pointed out that costs such as flights, brokers, and medical exams for migrant workers coming to Taiwan are borne by the workers themselves. However, international standards dictate that employers must pay these costs. As Taiwan heavily relies on international trade, if companies want to do business globally, they must absolutely abandon the mindset of importing cheap labor. Migrant workers are actually not cheaper, because if calculated according to international human rights standards, the implicit costs of hiring them are high.
Regarding Giant Group's current situation, Chi mentioned that Giant has hired lawyers to communicate with CBP, refunded worker fees, and relocated dormitories. However, the CBP WRO has not yet been lifted. The hurdle is CBP's requirement for Giant to establish a "third-party grievance mechanism with external participation." The company originally hoped the government's 1955 hotline would satisfy this need, but the government clarified that 1955 is merely a reporting and referral platform, dashing the company's hopes and forcing them to build their own compliance mechanism to resolve the issue.