Tang Eng Iron Works

Employee Welfare

Talent Recruiting Promotion, Job Change, and Resign or Retired

Talent Recruitment

All regular employees of Tang Eng Company are from Taiwan, and there are no foreign employees. The recruitment of personnel also complies with the requirements of laws and regulations, and child labor has never been used. In addition, because Tang Eng Company is an operating steel mill, most are employed in on-site manufacturing units. Based on safety considerations, the proportion of male employees is relatively high, but there is no discrimation based on gender, marriage and childbirth as far as salaries, benefits, evaluation and promotion opportunities are concerned. The Company also strictly abides by labor laws, international norms and the Tang Eng Iron Works Co., Ltd. Human Rights Policy, and does not force or coerce any unwilling personnel to perform labor services.

In 2024, Tang Eng Company's total new employee employment rate was 4.75%. The number of new recruits in 2024 was 91, and 97% of these new recruits were from the southern region of Taiwan, with 86% recruited near where the Company operates (Kaohsiung City), showing that the Company implements the localization policy of employment in order to achieve the goal of sustainable operation.

Tang Eng Company actively employs people with disabilities and indigenous peoples as well as other disadvantaged groups to demonstrate the Company's determination to care for those disadvantaged groups. Currently, the Company employs only one indigenous person. The indigenous colleague behaves normally during work, gets along well with colleagues, and receives good treatment. Their welfare is no different from that of other colleagues. In 2024, Tang Eng Company did not infringe upon the rights of indigenous peoples. In addition, there are 14 employees with disabilities, and their relevant work conditions are consistent with that of other colleagues, and get along well.

Number of New Employees in the Past 3 Years

Year	2022				2023				2024
Age and Gender	Males	Males Recruitment Rate(%)	Females	Females Recruitment Rate(%)	Males	Males Recruitment Rate(%)	Females	Females Recruitment Rate(%)	Males	Males Recruitment Rate(%)	Females	Females Recruitment Rate(%)
< 30	8	1.30	0	-	3	0.50	1	0.17	18	2.85	0	0
30 to 50	24	3.89	3	0.49	25	4.16	1	0.17	67	10.60	5	0.79
> 50	0	-	0	-	0	-	0	-	1	0.16	0	0
Total New Employees	35				30				91
Total Workforce	617				601				634
Total Recruitment Rate (%)	5.67%				4.99%				14.35%

Total recruitment rate (%) = New employees in each category in the specified year divided by the total workforce in each category at the end of the specified year.
Those new employees who leave midway before the end of the year are not included in the total new employees.

Distribution of Employee Positions in the Past 3 Years

Year			2022	2023	2024
Category and Gender		Age	Number	Number	Number
Minority or disadvantaged groups	Male	< 30	-	-	-
		30 to 50	3	3	3
		> 50	10	11	10
	Female	< 30	-	-	-
		30 to 50	-	-	-
		> 50	1	1	2

Minority or disadvantaged groups: groups with certain conditions or characteristics (such as economy, physiology, politics and society) may suffer more serious negative impact from organizing activities than the general population.

Promotion, job change, and resign or retired

In 2024, a total of 5 people applied for maternity leave without pay. In addition, the change of employees' positions and the resignation or retirement of employees are handled according to regulations. Formal employees can work until they are 65 years old and retire or voluntarily retire early according to the law. The regulations for promotion, change of position and preferential retirement are as follows:

Job change and promotion

We have established “Employee job promotion, transfer, demotion, adjustment and evaluation working guidelines” to educate and promote excellent employees and construct policies of employment based on talent, and right person for the right job for human resource management. We would like to excel on advancing employee experience for our organization's sustainable development. We would follow the guidelines for any promotion and job changes.

Minimum notice period for operation change

If there is job termination caused by major operation change, we would follow the Labor Standards Act and announce the it ahead of the time according to the regulations.

The notice timing of termination of the labor contract is as follows

Employees who continue to work for more than 3 months and less than 1 year shall be notified 10 days in advance;
Employees who continue to work for more than 1 year, but less than 3 years, shall be notified 20 days in advance;
Employees who continue to work for more than 3 years shall be notified 30 days in advance.

Retirement system

According to the Company's employees' work rules, employees who meet the provisions of Article 53 of the Labor Standards Act may apply for retirement:

Those who have worked for more than 15 years and have reached the age of 55.
Those who have worked for more than 25 years.
Those who have worked for more than 10 years and have reached the age of 60.

Those who meet the provisions of Article 54 of the Labor Standards Act shall be forced to retire:

Those who have reached the age of 65.
Physically or mentally handicapped and unfit to work.

After the Labor Pension Act came into force, the new system applies to all employees hired after the Company's privatization on July 5, 2006, and 6% of these employees' monthly salaries are allocated to the personal special account of the Labor Insurance Bureau.

For those who apply the pension system of the Labor Standards Act, the Company has also set up a labor retirement reserve supervision committee, which is responsible for the implementation of pension management and retirement methods, and allocates 12% to the Taiwan Bank Pension Special Account according to the prescribed standard on a monthly basis. Relevant regulations are listed as follows:

The pension calculation of the Company's employees is based on their years of service and the average salary of the six months before the approved retirement date.
The Company allocated a labor retirement reserve fund, and as of December 31, 2024, the balance was NT$921,147,000.
In the last two years, 76 employees have retired in accordance with the Labor Standards Act, and the total number of pensions paid is NT$275,170,000. It is estimated that there will be 71 employees who will retire in the next two years (calculated until December 31, 2026).

Preferential Resignation

The Company has formulated the "Measures for Handling Employees' Special Preferential Resignation and Retirement Implementation Rules" to institutionalize the application for preferential retirement.

Number of departures

In 2024, the average employee turnover rate of Tang Eng Company was 9.15%. (Reasons for departure include resignation, dismissal, retirement, or death while in service; departing personnel do not include those on unpaid leave.) The average turnover rate of male employees was 8.68%, and 0.5% for female employees. By age group, for those employees under 30 years of age, the average turnover rate of employees was 0.2%; for 30 to 50 years of age the rate was 2.05%; and for over 50 the rate was 6.94%.

Employee Turnover in the Past 3 Years

Year	2022				2023				2024
Age and Gender	Males	Males Turnover Rate(%)	Females	Females Turnover Rate(%)	Males	Males Turnover Rate(%)	Females	Females Turnover Rate(%)	Males	Males Turnover Rate(%)	Females	Females Turnover Rate(%)
< 30	4	0.65	0	-	0	-	0	-	1	0.16	0	0
30 to 50	10	1.62	1	0.16	12	2.00	1	0.17	11	1.74	2	0.32
> 50	23	3.73	5	0.81	28	4.66	5	0.83	43	6.78	1	0.16
Total Turnover	43				46				58
Total Workforce	617				601				634
Total Turnover Rate (%)	6.97%				7.65%				9.15%

The total turnover rate (%) = number of resignations in each category in the specified year divided by the total workforce in each category at the end of the year.
The number of departed employees includes employees who left voluntarily or were dismissed, retired or passed away while employed.