Friendly Workplace

THSRC highly values the opinions and rights of all employees and recognizes that effective two-way communication is a crucial component of sustainable business operations. On March 31, 2022, THSRC achieved a significant milestone by signing a collective agreement with the corporate trade union for the first time. This achievement comes after nearly six years of negotiations and demonstrates the commitment of THSRC and the corporate trade union to collaborate and enhance the rights and interests of employees. The collective agreement includes fundamental regulations on the agreement's status, validity, and scope of application, as well as 13 articles on business leave for trade union councils and supervisors, official leave for the four statutory meetings, provision of clubhouse facilities, assistance in commuting to meetings, and assistance in labor education and training. This agreement applies to approximately 1,800 employees. As the current collective agreement's content is based on the Company's existing labor conditions, the labor conditions and benefits of other employees not covered by this agreement, except for labor education activities, remain unaffected.

SRC acknowledges and upholds the right of its employees to freely associate and conducts regular meetings to engage with both corporate and industrial trade unions, ensuring that their voices are heard. As of 2021, 38% of employees have joined trade unions. To better understand the needs of our employees, we hold regular meetings with THSRC unions and quarterly labor meetings at 19 business sites. Corporate trade unions convene monthly, while industrial trade unions meet every two months. In 2022, discussions will cover topics such as working days and holidays, special leave provisions, overtime procedures, and variable working hours regulated under standard working hours. Apart from trade unions and labor-management conferences, we have established various channels for complaints and communication, including a sexual harassment prevention and complaint channel (email: helpme@thsrc.com.tw, telephone: 02-87251319, fax: 02-87251329).

The chart below illustrates the procedure for addressing employee grievances at THSRC. In 2022, a total of 14 complaints were filed, primarily concerning interpersonal and management matters. All cases were resolved in accordance with the established employee complaint process, and all responses and cases were concluded. THSRC endeavors to enhance awareness of the process through trade union and labor-management conferences. The internal complaint mechanism has resulted in a substantial rise in the number of grievances. Going forward, THSRC will remain committed to proactively addressing employee complaints to foster harmonious labor-management relations and cultivate a transparent workplace environment.

THSRC is dedicated to eradicating sexual harassment and ensuring the physical and mental well-being of its employees in the THSR workplace. To achieve this, physical and online education and training will be provided to supervisors and colleagues. Units where sexual harassment occurs will receive specialized education and training, and psychological rehabilitation and counseling will be offered to victims. In 2022, 206 supervisors at or above the level of section chief participated in six sessions of sexual harassment prevention and education training courses. Additionally, 4,678 peers attended online e-learning courses, achieving a 100% participation rate.

In 2022, THSRC received a total of four sexual harassment complaints, all of which have been addressed and resolved. THSRC has established procedures for handling sexual harassment complaints, including deliberations and other measures. Immediate psychological counseling is provided to victims of such incidents, and all staff members are continuously educated on the prevention of sexual harassment and related legal issues. A Sexual Harassment Complaints Committee has been established, consisting of 13 members on a rotating basis, including internal members, external experts, and academics with legal backgrounds who serve as investigation and deliberation members. THSRC has developed a reference list of proposed sanctions and a scale of sanctions for sexual harassment cases to ensure open and fair criteria for scrutiny and to protect the physical and psychological safety of workers in the THSRC workplace.

Employee Grievances Process

THSRC has implemented internal equipment and care measures in compliance with the "Act of Gender Equality in Employment" and "Labor Health Protection Regulations" to ensure employee well-being. Additionally, the Company has established the "Mental Health Protection Regulation" to cater to the diverse needs of its employees. In 2022, THSRC introduced an external "employee support program" to create a more employee-friendly work environment. This program aims to assist employees in addressing various issues, provide timely support and assistance, and maintain their physical and mental health. Further details are as follows:

Occupational Safety Management Mechanism and Effectiveness

To promote a safety culture that is “people-oriented”, THSRC has implemented an occupational safety and health management system since its inception and continues to enhance its performance. In 2017, the Company achieved dual certification for the Taiwan Occupational Safety and Health Management System (TOSHMS) CNS 15506 and the International Certification of Occupational Safety and Health Management System OHSAS 18001, following a successful external accreditation. In 2020, THSRC passed an external review and obtained certification for (TOSHMS) CNS 45001 and ISO 45001, which have been routinely validated annually since. The Company's occupational safety and health management system encompasses stations, maintenance depots, facilities, and office spaces. At the end of 2022, the system covered 4,678 workers and 157,941 contractors. In 2018, THSRC received the recognition of the Ministry of Labor for “Occupational Safety and Health Management System Performance”, furthering its goal of creating a safe and sustainable labor operation.

THSRC has formulated the “Safety and Health Policy” and regularly convenes the “Occupational Safety and Health Committee”. The committee comprises one chairman, one executive secretary, and 17 members, including seven labor representatives, accounting for one-third of all committee members. The Company also holds occupational safety and health management meetings to encourage all units and labor representatives to jointly review various occupational safety and health issues. The resolutions are announced through internal and external websites.

We have implemented various systems and policies to enhance our company's overall occupational safety awareness. Additionally, we have continued to provide employee safety and health training, focusing on seven special hazardous operations aspects: production machinery, mobile elevating work platforms, hoists, construction, hypoxia, electric welding, and chemical use and disposal. This training is aimed at strengthening our employees' emergency response capabilities and confirming the implementation of the contractor's safety and health training through supporting documents. In 2022, a total of 534 employees completed these training sessions, totaling 2,988 hours. Please refer to the following table for detailed training information:

THSRC not only implements internal occupational safety and health management but also actively collaborates with its supplier partners to create a safe and healthy workplace. In January 2020, the Company introduced a formal occupational safety and health management system for contractors, which is built through the contractors' management system. The system incorporates all the steps of "management regulations signing, pre-construction safety and health education, personnel and equipment checking and inspection, construction work management, high-risk operation control, noncompliance management, and factory evaluation" into its management to minimize the operational risk of contracted personnel.

THSRC has established measurable and trackable indicators for evaluation. We have also implemented periodic and non-periodic inspections and audits to ensure the effectiveness and feasibility of our internal management mechanism. The table below outlines the achievement of our occupational safety and health management goals for THSRC employees, contractors, and suppliers, as well as our occupational safety indicators for 2022:

Occupational Safety and Health Management Goals

Notes:
1. The settlement date for occupational safety and health management targets was December 31, 2022.
2. Frequency-severity indicator = √［（Disabling injury frequency rate FR × Disablinginjury severity rate SR ）÷ 1000］
3. In 2022, THSRC employees experienced a total of 10 traffic accidents outside the workplace.
4. In 2022, there were zero disasters involving contractors that required hospitalization.

THSRC has implemented the “Hazard Identification, Risk Assessment, and Risk Control Procedure” to address occupational hazards and reduce the likelihood and severity of occupational accidents. This procedure involves identifying hazards, inspecting existing protective facilities, conducting risk assessments, and implementing control measures. THSRC has also adopted a hierarchical control system to eliminate hazards and minimize risks. Each unit has trained hazard assessment personnel who disclose hazard assessment information on the internal platform and re-check the effectiveness of hazard control measures annually to continuously mitigate and control the risk of each operation. In 2022, THSRC completed over 14,122 hazard identifications and risk assessments.

Hazard Identification, Risk Assessment, and Risk Control Procedure

THSRC encourages all workers to actively report any situations that may cause occupational safety and health risks. We require all units to report false alarms and occupational injuries truthfully, to eliminate concealment, discover the true root cause, and improve potential hazards and risks. We ensure smooth reporting of occupational accidents and accidents through company regulations and announcements. In 2022, there were 187 confirmed occupational safety and security incidents. THSRC encouraged the reporting of false alarm incidents to increase the integrity of the scope of hazard assessment of each unit and provide a safer working environment, as well as increase the completeness of the risk assessment scope of each unit and further provide a safer working environment. After understanding the actual situation, we continue to improve work safety through environmental optimization, safety publicity, and regular maintenance of protective equipment.

If a worker discovers that there is a risk of immediate harm when performing his/her duties, the “Occupational Safety and Health Act” shall prevail in priority, and the worker can stop the operation and retreat to a safe place. The immediate supervisor who is informed will initiate subsequent measures to eliminate hazardous situations to ensure the safety of workers. In case of a disaster, after the internal and local competent authorities are informed, THSRC will immediately initiate an investigation process as per the “Occupational Accident Notification and Investigation Process,” with the aim of handling the incident effectively and alleviating the negative impact as quickly as possible. During the investigation, the immediate unit supervisor of said worker will lead the occupational accident investigation team to carry out the investigation jointly with labor representatives to ensure labor rights.

Occupational Accident Notification and Investigation Process

In 2022, THSRC reported no fatalities or serious injuries resulting from occupational accidents among its employees. The number of occupational accidents causing incapacity in the workplace was 12. Falls were the primary cause of occupational injuries, followed by improper actions by personnel. Workers who are not employees but whose work and/or workplace is controlled by the organization did not experience any occupational injuries resulting in “death” or “affecting more than three people”. THSRC regularly publicizes the occupational accident cases and false alarms that happened to colleagues through multiple communication methods such as email, occupational safety and health bulletin board, agreement organization meeting, and toolbox meeting. As well as inviting occupational safety experts to give safety culture lectures to establish a safety culture. The management level strengthens on-site management and inspections, strives to instantly eliminate and improve unsafe conditions, and reminds colleagues to pay attention to work safety in real time. Under the principle of "non-hidden reporting", all occupational accidents on THSRC have been reported accurately in 2022, as well as no occupational disease-related incidents. In the future, we will continue to optimize occupational safety and health management measures to raise employees' awareness of safety protection.

Occupational Safety Index in 2022

Notes:
1. This table is calculated in accordance with the Occupational Safety and Health Act, the definition of occupational disasters and the indicators published by the Global Reporting Initiative (GRI).
2. Ratio of deaths resulting from occupational injuries = (Number of fatal occupational injuries/Total working hours) x 200,000
3. Ratio of severe occupational injuries = (Number of severe occupational injuries/Total working hours) x 200,000. Note: 0 employees for 0 day; 0 contractors for 0 days
4. Ratio of occupational injuries on record = (Number of reported occupational accidents/Total working hours) x 200,000. Note: 1 employee for 33 days; 4 contractors for 75 days. Notes 2 and 3 have been deducted
5. Total working hours for employees were 9,313,624 hours. For contractors, the total working hours were calculated as: annual cumulative number of people entering and leaving the venue (157,941 people) * 8 hours per day = 1,263,528 hours

In addition to implementing workplace safety measures, THSRC has organized health promotion lectures, courses, and strengthened relevant training for new employees to safeguard the health and well-being of internal partners. The health promotion activities carried out in 2022 are as follows:

Health Promotion Activities in 2022

Note: Non-full-time employees are also entitled to health promotion activities (except for annual health examination).

"T-SPORT" series of activities for THSRC personnel

In 2022, as the pandemic has been on a downward trend, THSRC devised a program called "T-SPORT" to promote healthy exercise habits and alleviate stress among its employees. The initiative aimed to foster team bonding and enhance staff cohesion through healthy cooperation and competition. The outcomes of the project are outlined below:

• “Summer Marathon”: Since the onset of the pandemic in 2020, the "Summer Marathon" online event was launched to encourage colleagues to upload their mileage records and share photos of their athletic achievements on the online platform via smart carriers. The objective was to promote a non-competitive, healthy sporting mentality among THSRC personnel, and to encourage departmental colleagues to engage in fitness activities, strengthen cohesion and identity, and maintain a robust physique. The event garnered participation from 6,183 employees, with 4,760 individuals completing the race, resulting in a completion rate of 77%. The total mileage covered by participants was an impressive 316,955 kilometers.
• “Mini Football Fun”: With the professional guidance of the “Football Association of the Republic of China”, our focus was to increase parentchild interaction and promote family harmony, in line with the social objective of promoting local care. A total of 60 groups of parents and children participated in the activity, creating lasting memories for all involved.
• “Ball games”: The sports activities comprised “badminton”, “billiards”, and “slow-pitch softball” tournaments, with a total of 32 teams and approximately 500 employees participating with great enthusiasm. These events have provided an opportunity for colleagues to improve their physical health and communication skills in the post-pandemic era.

THSRC firmly believes that a sound welfare system is key to strengthening labor partnership. To help employees balance work and life, THSRC provides a variety of benefits, including childcare support, work-life balance, work support, and subsidies. We have established an employee welfare committee in accordance with the law and regularly review our internal welfare policy through market surveys conducted by external consulting companies to ensure competitiveness. In response to the COVID-19 pandemic and vaccination needs, we provide statutory infectious disease insurance and vaccine insurance for our colleagues. THSRC also explores ways to protect employees' wages and career development without restrictions, encourage employees " Carey-Free about Pregnancy, Childbirth, and Childcare". For employees who apply for statutory unpaid leave, including parental, injury, illness, and military service, regardless of gender, if the Company implements a salary adjustment during the unpaid leave, the annual salary adjustment system can still be applied after reinstatement to protect their working conditions.

THSRC Employee Benefits and Work Support Items

Note: THSRC's health examination measures are superior to those tipulated in the relevant laws and regulations, where general employees aged 45 years old and above undergo health examination once a year, and those aged under 45 years old undergo health examination once every two years, while train personnel undergo health examination once a year. The 2022 and 2023 annual health examination for general and train personnel was completed from March to October, and 100% of train personnel completed the health examination.

Implementation of retirement plan system

To provide stable lifestyles for employees after retirement, the Corporation has set retirement procedures in accordance with law, and has established a Pension Reserves Supervisory Committee which convenes every quarter to discuss distribution of pensions and other matters.

The Corporation has established a retirement benefits plan according to the Labor Standards Act and the Labor Pension Act

(a) Defined benefit plan: Includes pension plans under the Labor Standards Act and the Labor Pension Act, as well as prior pension plans where tenure of services rendered was retained. The Corporation places 2% of employee monthly salaries into pension funds, and these are turned over to the Pension Reserves Supervisory Committee and deposited in a special savings account at the Bank of Taiwan in the Committee's name. Qualified actuaries review pension reserves every year and the Pension Reserves Supervisory Committee convenes periodically in accordance with relevant laws to protect the pensions and rights of our employees.
(b) Defined contribution plan: Includes pension plans under the Labor Pension Act. The Corporation places 6% of employee monthly salaries in individual labor insurance accounts to serve as pension reserves.
(c) Pension distribution table

Retirement conditions

(a) Voluntary retirement: An employee may apply for voluntary retirement under any of the following conditions:
I. Has reached the age of fifty-five and has worked for fifteen years.
II. Has worked for more than twenty-five years.
III. Has reached the age of sixty and has worked for ten years.
(b) Forced retirement:
I. Has reached the age of sixty-five.:
II. Is unable to perform his/her duties due to disability.
(c) Pension payments and standards:
I. Defined benefit plan: Employers shall pay employee pensions within 30 days from the day of retirement. According to Article 55 of the Labor Standards Act, pensions are calculated according to bases of tenure of services rendered and the six-month average salary amount following approval of retirement application. Two bases are given for each full year of service rendered. But for the rest of the years over 15 years, one base is given for each full year of service rendered. The total number of bases shall be no more than 45. An additional 20% on top of the amount calculated according to the preceding subparagraph shall be given to workers forced to retire due to disability incurred from the execution of their duties.
II. Defined contribution plan: According to the Labor Pension Act and relevant regulations, employees under the new pension system can collect pensions from their pension reserve accounts directly from the Bureau of Labor Insurance.