Chunghwa workers threaten privatisation

18 May 2005

More than 500 employees of Chunghwa Telecom went on strike outside the Taiwanese telco’s headquarters yesterday and the company’s labour union has warned that it will do everything in its power to derail Chunghwa’s forthcoming privatisation. Workers are unhappy with the government’s plan to issue of American Depositary Receipts equivalent to around 14% of the telco’s outstanding shares; a tender for management of the sale is expected to be launched later this month. The union says that the sale of ADRs violates a resolution passed last year that prevents the state selling any of its 65% holding in Chunghwa until an agreement is reached safeguarding employees’ rights.

Taiwan, Chunghwa Telecom