8:30 am on Tuesday June 10, 2009
At WINTEK Corporation Headquarter Taiwan
10, Chien-Kuo Road, TEPZ Tantzu, Taichung, Taiwan, R.O.C
We will announce our operation investigation of Wintek, containing relevant information to institutional and individual investors
Contact：Secretary General of NAFITU, Chu Wei-Li 0981-238732；wei-li-1210@yahoo.com.tw
English Contact：Torrent, torrent.org@gmail.com
Do you invest in Wintek? Do you have shares of Wintek? Did you lend money to Wintek? Did you place orders with Wintek? Are you one of Wintek’s suppliers? Wintek will assemble a shareholders’ meeting on June 10, 2009. Wintek claimed it’s having an operation loss, thus no dividends this year. In the shareholders’ meeting, to raise local and oversea funds, Wintek will propose to issue new common shares participating in global depositary receipt and also a new private placement of common shares. But, with its significantly flawed management, the new fund sources imply worse investments and greater loss! National Federation of Independent Trade Unions, WINTEK bargaining team and other labor organizations will come to the Wintek shareholders meeting to announce the truth that investors need to know. Shareholders, institutional investors, suppliers, be aware of those inconvenient truth highly relevant with Wintek’s stock price!
Truth 1: Wintek cut salaries and laid off employees, but the operation cost still soars
Wintek claimed a loss and declared no dividends this year. According to its 2008 statement of operations, compared with 2007, the sales have increased $6.87 billion TWD. Nonetheless, because of the high operation cost ($28.85 billion TWD more than 2007), the gross profit has declined sharply ($21.97 billion TWD lower than 2007.) Wintek cut salaries, laid off workers, forced employees to take unpaid leaves, stopped paying overtime compensation since December 2007; but the operation costs still soared in 2008. Investors need to examine this unusual cost increase. Why did operation costs still sky rocketed after cutting labor costs? Where has the money gone? Did Wintek’s flawed management raise the defective rate and end up in high indemnities?
Truth 2: The labor disputes in Wintek attracted global attention and became a concern to Wintek’s customers!
Wintek has been involved in labor disputes since the extensive layoff occurred in December 2008 and the large-scale 7,000-worker strike took place at MASSTOP in Dongguan in April 2009. The labor disputes attracted global attention. All Wintek’s global brand manufactures and Chinese suppliers received workers’ joint statement of protest. In the shareholders’ meeting on June 10 2009, the labor organizations in China and Taiwan will announce the most updated “Wintek Labor Investigation Report.” According to the report, Wintek continues to exploit labor. The illegal labor measures include forcing workers to work overtime, illegally extending overtime working hours, cutting compensations and salaries, canceling holidays, providing unsanitary food which caused on-site food poisoning. The Wintek executives haven’t faced up to these labor disputes. These labor disputes have already damaged Wintek’s corporate image and they have become a concern to the foreign customers, lowering their incentive to place orders to Wintek. Did president Huang know that the labor disputes already damaged Wintek’s image and sales? Did president Huang know that the illegal labor measures already lowered the product quality and boosted indemnities?
Truth 3: The executives enjoy high salaries, while the workers and shareholders pay the price!
According to the operation costs in 2008, the salary expense was only 6% of total operation cost but the outsourced processing costs amounted to 46%. Wintek paid a huge amount to the outsourced companies but spent little on its own on-site labor. Since the on-site labor was only a small portion of operation costs, there is no need to cut the on-site salary at the price of damaging corporate image.
The majority of workers who got laid off were factory laborers. However, compared to the executives’ compensation, the average salary of factory workers is very low. The average salary of the executives at Wintek is more than $100,000 TWD per month and the additional monthly manager bonus range from $5000 to $40,000 TWD. Some managers even get $500,000 TWD a month. Is it fair for the workers and shareholders? The executives enjoy high salaries, but the workers and shareholders have to pay the price. The executives have to take responsibility for labor disputes and operation losses. We shareholders and workers demand the executives to take full responsibly and cut their own high salaries!
The salary
gap between basic workers and executives
| Basic workers | 2A | 3D |
| 2A~3D | $14,880~$22,400 TWD per month | $ 25,000~$55,000 TWD per month |
| Executives | 6 | 12 |
| 6~12 | $40,000~$120,000 TWD Per month | $90,000~$500,000 TWD Per month |
*The additional monthly
manager bonus range from NT$5000 to NT $40,000.
The salary gap between basic workers and executives
From the statistics above we can see that the executives at Wintek enjoy high salaries but don’t pay the price of their own bad management. The executives and managers do not take responsibility and the price of flawed management should not be paid by shareholders and basic workers.
To protect the shareholders’ rights, we demand that the executives at Wintek face up to the labor disputes immediately. Wintek should negotiate with the labor representatives selected both by employees and laid-off workers, improve labor conditions at once and replace the unqualified manager Cheng-Hwei Chen.
1. WINTEK must restore the jobs taken from the workers who were laid off in Taiwan and China, withdraw the demonstration lawsuit, and promise no retaliation on workers.
2. WINTEK must improve its working conditions immediately, pay the overtime compensation, provide sanitary food and abandon the fine system in the China manufacturing sites.
3. Present Huang and Vice President Hsu must hold direct talks with the labor representatives, negotiate a practical solution to the labor disputes, and examine the working environment and labor rights.
4. The executives at Wintek must apologize to all the employees and promise to protect all workers’ rights.
5. The executives at Wintek must provide its workers with the labor rights trainings. The training should be held by the officials or labor organizations.
Initiating Organizations:
Taiwan: National Federation of Independent Trade Unions, WINTEK bargaining team, Solidarity Union, Youth labor union 95, Taiwan Labor Information & Education Association, Confederation of Trade Union in Taipei City, Taoyuan County, Hsinchu County, Miaoli County, Tainan County and Kaohsiung County, Workers' Democracy Association (WDA), Taiwan International Workers' Association, Taiwan Association for Victims of Occupational Injuries (TAVOI), Raging Citizens Act Now (RCAN), Taiwan Corporate Watch, Taiwan Labor Front, The Green Party Taiwan, Taiwan Environmental Action Network, Green Citizens' Action Alliance (GCAA)
Hong Kong: Globalization Monitor, SACOM, HKCTU, Labour Action China
Mainland China: China Worker Studies
Japan: Asian Pacific Workers Solidarity Links
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