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Sustainability(2020)

Human Rights

■ Respect for Human Rights

Mega Holdings complies with labor regulations, respects the internationally recognized principle of labor's basic human rights, and protects legal rights and interests of employees; the Company also adopts a non-discrimination policy in the employment policy; that is, employees are not discriminated against gender, race, marriage, religion, and other factors; there is no forced or compulsory labor, infringement upon the rights of indigenous peoples, or infringement upon the interests of employees within the Group; no child labor under 16 is employed by the Company. In addition, the Company respects the rights granted to employees by law and never restrains or prevents employees from forming a union or clubs. We established the "Human Rights Policy" in accordance with the UN's Universal Declaration of Human Rights, UN Global Compact and related regulations of the UN International Labour Organization in September 2018 and disclosed it on the company website.

We also established the "Sexual Harassment Prevention Measures, Appeals, and Disciplines" and post the information (helpline and E-mail address) publicly in the office area to let employees understand more about the workplace sexual harassment prevention and response. There were no sexual harassment complaints in 2018. In addition, MICB sets up an anti-overtime working mechanism in the attendance system which controls and sends warning according to laws and regulations to prevent employees from working overtime and forced labor.

MICB has converted training on the Human Rights Policy (including sexual harassment prevention) to the digital learning system since 2017 to greatly improve the integrity of the training. In 2018, there were no reports of complaints regarding human rights or discrimination.

■ Collective Agreement

To facilitate labor relations, business development, and rights and benefits of employees, MICB enters into the collective agreement with the union. The collective agreement specifies labor conditions, such as remuneration, working hours, leaves, employment, transfers and dismissal, retirement and pensions, and health and safety; issues concerning health and safety account for 8%. Certain subsidiaries do not have a union, but the rights and interests of their employees are protected by related labor regulations. To secure the employees' right to work, the Company shall inform the employees in advance of any unit establishment, relocation or downsize and merge. If the change of business nature results in no suitable jobs for the employee, or the employee is incompetent in taking up the job, the Company shall, according to the Labor Standards Act, inform the employee of the termination of the employment contract at least 10-30 days prior to such termination. The Group has five labor unions in total, the Mega Bank Union has 5,298 members, accounting for 83% of the total number of its employees, and the Company's union has 48 members, accounting for 86% of the total number of its employees.

MICB organized regular labor-management meetings with the union in 2018. The labor-management meetings discussed a wide range of issues and labor and management representatives exchanged opinions on various issues to communicate. MICB also used other communication platforms (e.g. ad hoc discussions with the directors and supervisors of the union) to strengthen the stability of labor-management relations.

■ Employee Grievance Mechanisms

The Company has set up employee grievance mechanisms to help solve problems and increase cohesion. Employees may provide recommendations for working conditions, environment, health and safety, salary and benefits, human rights, and equality through these mechanisms. The Company takes action actively from the standpoint of employees. Each subsidiary has announced the regulations governing the handling of sexual harassment incidents and the grievance mechanisms according to the law. In 2018, there was no sexual harassment case reported.