China Steel to raise wages by 3.5%
Taipei, March 26 (CNA) China Steel Corp., the largest steel maker in Taiwan, has decided to raise employee wages by 3.5 percent after posting its highest net profit in eight years.
A board meeting held on Monday approved the wage hike plan, which is expected to take effect April 1, marking the seventh consecutive year the steel maker has raised wages, China Steel said.
It is also the second consecutive year China Steel has hiked salaries by 3.5 percent, the company said. From 2013-2017, wage increases ranged from 2.2-2.8 percent.
China Steel said the company currently has a workforce of about 10,300 and along with bonuses the upcoming salary hike is expected to increase labor costs by more than NT$700 million (US$22.7 million) a year.
In 2018, China Steel posted NT$400.67 billion in consolidated sales, up 15.46 percent from a year earlier on the back of an increase in steel prices, while net profit hit NT$24.45 billion, up 44.65 percent from a year earlier.
The company's earnings per share for 2018 stood at NT$1.58, the highest since 2010, when its EPS hit NT$2.83.
This is also the first time China Steel has generated sales topping NT$400 billion since it was established in 1971.
Due to the improving bottom line, China Steel has proposed issuing a NT$1 cash dividend for each common share, the highest in four years, while the company has also suggested a NT$1.4 cash dividend for each preferred share.
The dividend proposals will be voted on at China Steel's annual general meeting scheduled for June 19.
The company said domestic steel prices declined on the back of slow season effects in the first quarter of this year but that trend could be reversed in the second quarter, when new public work projects and home constructions are expected to start.
