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In Taiwan, collective bargaining is a legally structured negotiation between an employer (or qualifying employer organization) and an eligible labor union. The parties negotiate a written collective agreement in good faith, complete the required internal approvals, and then file and disclose the signed agreement. Eligibility, approval rules, and the route for handling a deadlock depend on the parties and the circumstances.

Who can bargain collectively in Taiwan?

The main laws are Taiwan’s Collective Agreement Act and Labor Union Act. A collective agreement is a written agreement between an employer—or a qualifying employer organization with legal-person status—and a union established under the Labor Union Act.

Not every union automatically has bargaining eligibility with every employer. The Collective Agreement Act recognizes enterprise unions, specified industry and occupational unions that meet membership conditions, and combinations of unions. A union found eligible through the labor-dispute decision process may also qualify. Where several unions or employer-side organizations are involved, the other party may ask them to select bargaining representatives. If they cannot agree on representatives, the statute provides for selection in proportion to membership. The Ministry of Labor’s bargaining guidance covers eligibility and multiple-union situations.

How does the bargaining process work?

1. Identify the parties and representatives

First establish which employer or qualifying employer organization will bargain and which union or unions meet the statutory eligibility rules. Confirm whether representatives will act for one organization or be selected among multiple organizations; the applicable membership and employer relationship matter.

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2. Prepare proposals and exchange necessary information

Preparation is a practical step, not a rule requiring disclosure of every business record. Parties can prepare proposed terms, supporting information, representatives, and meeting arrangements. The Act allows a party to require confidentiality for information supplied for bargaining and to seek necessary expenses. It also treats refusal to provide information necessary to bargain as a possible unjustified refusal. The Ministry’s practical materials include preparation and meeting resources.

3. Negotiate in good faith

The Act states: “The labor and management sides shall bargain a collective agreement in good faith; neither party may refuse to bargain without justifiable reasons.” It identifies examples that may amount to an unjustified refusal: rejecting reasonable proposed content or meeting arrangements, failing to respond to a written bargaining notice and bargain within 60 days, or refusing necessary bargaining information. Whether conduct violates the rule depends on the facts and the applicable labor-dispute decision process.

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4. Agree on the subjects and terms

The possible scope is broad. The Ministry lists wages, working hours, allowances, bonuses, transfers, layoffs, retirement, occupational-injury compensation, union operations and facilities, grievance procedures, occupational safety and health, and welfare among potential subjects. An official Ministry publication also gives examples from newly signed agreements, including overtime-pay calculations, scheduled salary-increase negotiations, rights related to mergers or transfers, preferential layoff or retirement schemes, job guarantees, occupational-accident compensation, and insurance for union members. Those are examples, not a measure of how common any term is.

5. Obtain approval and sign

Internal approval depends on how the organization enters the agreement. According to the Ministry’s FAQ, updated September 3, 2026, when a union or employer organization signs in its collective name, its charter generally governs approval. Otherwise, the statutory alternatives are approval at a meeting attended by more than half of the members, with at least two-thirds of attendees approving; or written approval from at least three-quarters of all members. An agreement signed without required approval does not take effect until the approval process is completed and it is ratified.

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Certain public-sector agreements require prior approval by the relevant authority. The Ministry FAQ identifies public enterprises and specified government bodies and schools; the applicable authority depends on the counterparty. For a live matter, check the current Chinese statutory text and the Ministry’s current guidance for the exact approval route.

6. File and make the agreement available

After signature, the labor-side party submits the agreement to the competent authority for record. Both parties must publicly display it and keep a copy available for interested parties to inspect. The Ministry’s guidance on collective agreements also addresses implementation and effect.

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What happens if one side refuses to bargain?

A refusal is not automatically unlawful: the Act prohibits refusal without justifiable reasons. The listed examples—unreasonable rejection of proposed terms or arrangements, failure to respond to a written notice and bargain within 60 days, and withholding necessary information—are assessed in context. The formal finding is tied to the labor-dispute decision process, so a party should preserve notices, responses, proposed meeting arrangements, and relevant information exchanges.

The statute does not make arbitration automatic when negotiations stall. Only after bargaining has continued for more than six months, and a decision under the labor-dispute settlement law finds a specified unjustified refusal, may a local competent authority refer the case to arbitration. The authority must consider the parties’ interests and the likelihood of reaching an agreement, and the parties may agree otherwise. The six-month period alone does not trigger referral.

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What does a collective agreement do once it takes effect?

The Ministry says the agreement’s applicable terms bind the relevant employer and union unless the agreement provides otherwise. The signed text therefore matters: it records the commitments and procedures the parties negotiated, while the statutory filing, display, and access requirements make the agreement available to those concerned.

The Ministry offers an official collective bargaining reference handbook and practical guidance. No current agreement-count or worker-coverage figure is established here, so the legal framework should not be mistaken for a claim about how many Taiwanese workers are covered in practice.

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