ChipMOS is dedicated to protecting all employees, maintaining their human rights, and extending our impacts to suppliers to protect the rights and interests of all members of our supply chain. We guide suppliers of ChipMOS to jointly follow the Responsible Business Alliance (RBA) Code of Conduct through comprehensive supply chain management mechanism, so as to respect workers, undertake ethical management, be environmentally-friendly, and to provide a safe and worry-free workplace environment.
Human Rights Risk Management
ChipMOS conducts an annual risk assessment of labor rights and ethics to ensure that human rights risks in the entire plant are effectively controlled and to reduce or eliminate various labor rights and ethical risks. Since 2016, we have conducted annual self-assessment questionnaires (SAQs) based on the Responsible Business Alliance (RBA) Code of Conduct, as well as internal audits, to assess human rights risks. Through proactive self-evaluation, we ensure effective management and mitigation of human rights risks throughout our fabs. Our aim is to reduce or eliminate various risks related to labor rights and ethics. This process enables us to identify and implement specific measures to improve human rights practices and foster an inclusive and equal working environment. According to the RBA 7.1.1 SAQ criteria, the assessment results are scored on a scale of 0 to 100. They are then categorized into three risk levels: (1) ≥ 85 indicates low-risk, (2)≥ 65 and ≤ 85 indicates moderate-risk and (3) < 65 indicates high-risk. According to the assessment results, all our fabs scored ≥85, indicating them to be low-risk facilities. These include our Hsinchu fab., Zhubei fab., Zhubei fab. 2, Hukou fab. and Tainan fab. (including Tainan fab. 2).
ChipMOS Human Rights Risk Assessment and Response
Human Rights Related Training
To protect employees’ interests and fulfill the corporate social responsibilities, ChipMOS has promised to conform to RBA 7.0 code of conducts, to ensure employees fully understand their own interests, healthy and safe working fields, environmentally protective actions, Regulations Governing Professional Moral Conduct of the Company, and the implementation of human right education and corporate social responsibilities in the management system. All employees must receive the human rights education and trainings when they come onboard. In 2022, a total of 3,186 new employees received RBA and other on-the-job human rights courses, completing a combined total of 1,151.3 hours of training, which translated to 60% of all employee training hours.
Diversification and Inclusion
ChipMOS also insists on recruiting the right people for the right job. In terms of the nationality distribution of employees, 80.28% are nationals and 19.72% are non-nationals, mainly Filipinos. At the same time, we offer proper care for our foreign employees and their renewal rate has stayed consistently over 75% during 2020~2022; as of the end of 2022, 54% of our foreign employees have stayed at ChipMOS for more than 5 years, and it reflects the fact our foreign workers are able to enjoy and stability whilst working at the Company. Apart from our foreign employees, due to the impact of the COVID-19 pandemic on the talent market in 2021, the Company started to hire foreign spouses to promote the employment rate, regardless of nationality, to provide foreign spouses with learning opportunities and enable them to acquire skills.
Principles of Foreign Employee Care
Diverse Communications and Appeal Systems
ChipMOS has established diverse and open channels of communication and committed to the promotion of labor-management communication and friendly management of human rights. At the same time, we have established a comprehensive internal and external complaint mechanism, which includes meetings, employee suggestion boxes, audit committee mailboxes, Information Security Management System(ISMS) suggestion boxes, chairman's mailboxes, communication hotlines/interviews, and more. Through these channels, complainants can raise concerns about potential or actual negative impacts caused by the company and seek assistance. This ensures the protection of the rights and interests of all employees and stakeholders. The responsible departments handle these matters with complete confidentiality and anonymity, aiming to facilitate open communication and effectively address relevant issues. If there is a complaint of sexual harassment, it will be investigated and trialed by the handling committee, and it will be coordinated and completed in accordance with laws and regulations; the medical office will also share articles related to gender relations from time to time, and in accordance with the regulations of Article 6 of the Occupational Safety and Health Law, to carry out the the risk identification and assessment survey of illegal workplace violations to educate employees on preventing gender discrimination incidents.
ChipMOS holds quarterly "labor-management meetings" in compliance with the law. These meetings provide a platform for elected labor representatives from each of our fabs to report on the latest labor-related updates. These reports cover topics such as the Company's workforce status, personnel training and development, employee welfare activities and so forth. The purpose of these meetings is to strengthen communication between labor and management, as well as encourage employee participation in decision-making and discussions. ChipMOS adheres to the spirit of the Responsible Business Alliance (RBA) Code of Conduct. If employees have concerns about policies or wish to provide practical suggestions, the Company encourages them to approach the audit department or the appropriate responsible unit with their proposals and improvement ideas, fostering a spirit of collaboration for the common good. When stakeholders have concerns about the Company's business activities, such as illegal or improper incidents, or situations that may harm their own interests, they can report them through the Audit Committee mailbox or directly approach the Legal Department and Audit Department. This ensures the protection of the rights of all individuals involved.
There are no labor disputes in 2022; in 2022, a total of 40 related opinions and responses from employees were received, and all feedback was responded to and processed immediately. The acceptance and closing rate is 100%, and there are no special cases, and there is no delay or accumulated cases.
Note 1: Evaluate whether it is a special case according to the actual situation of the case, such as violation of national laws, company regulations or cases that may affect the operation of the company
Diverse Communication Channels