A shoe giant that refused help from 0.2 to 30 billion Taiwan dollars?

Date：2020-06-09 09:46:17

Yesterday (June 8), Taiwan's Ministry of Labor announced the latest statistics on unpaid leave (reduction in shifts), and the number of employees increased by 2,022. The total number of unpaid leave in Changhua County has soared to 28,345, a record high for more than 10 years.

Statistics show that the number of unpaid leave in Changhua County has skyrocketed, which is presumably related to the unpaid leave reported by a major shoe manufacturer.

Why did the giant shoe manufacturer, Shoemaker, refuse to help?

It's really just a simple math problem.

A global footwear leader last week rejected the government's bailout offer and insisted on unpaid leave from June 1, prompting a variety of concerns. speculation, but industry sources pointed out that there was a decision that had to be made behind the group's preference to take unpaid leave rather than apply to the government for a bailout

The group has more than 10 companies with ties in Taiwan, and the amount of revenue reduced by the impact of the epidemic varies among the companies, according to the official statement, the government The conditions associated with the provision of the Manufacturing Financial Relief and Revitalization Measures Program may not be applicable to all companies in Taiwan, and the Group's personnel The policy should be promoted in accordance with the principles of management consistency and fairness, and weigh the cost-saving benefits of introducing relief programmes against the cost-saving benefits of implementing time-off. In the end, the group decided not to accept the government bailout, opting instead to push for pay cuts for senior executives and work rest breaks for employees, among other measures.

The group's rejection of the government bailout is that there is no guarantee that it will not go without unpaid leave and layoffs in the future.

This is because after applying for a loan and interest subsidy, the first priority must be to take care of the employees, and after obtaining the financing loan, it must be used to pay for the employees' Salary, and the allowance will be withdrawn if violated.

If the group gets a bailout with the government of up to 0.2 to 30 billion yuan (Taiwan dollars), for personnel costs of up to 77.6 billion yuan a year. It's only a drop in the bucket, and it's easy to imagine the restrictions that have been placed on the group, as well as its rejection of the government's bailout proposal.

The Group has already forecasted the future of the industry, but the epidemic is still a major uncertainty for the Group's order books and sales visibility.This year's subsequent operating performance will be affected by future uncertainties, which may even lead to temporary plant closures and further capacity adjustments.