Employee Care and Development

Precautionary Measures for a Safe Working Environment and Personnel Security

Occupational Health and Safety

Dynamic is committed to providing employees with a safe and healthy work environment. We established the Occupational Safety and Health Committee (OSH Committee) with reference to the Occupational Safety and Health Management Regulations. The committee holds the committee meeting every quarter and enforces organizational occupational safety and health policies to ensure all departments are operated safely and prevent accidents and disasters. An accident and anomaly investigation and management system is also established to investigate work-related accidents and injuries (including environmental accidents) to identify the causes of accidents and take effective corrective and preventive actions to prevent recurrence.

Practical implementation Contents

1. To ensure prevention of workers being exposed to hazardous material, for exposed concentration to meet law regulated standards, the Company carries out operation environment inspection twice a year in order to implement the supervision and monitor on work environment. Inspection plan is announced before putting it into practice, and the implementation result is disclosed to the public. Improvement actions are taken according to the monitoring results. Referring to the yearly employee health examination report, find out the corresponded improving action and adjustment in work place condition with the assistance from the occupational disease specialized doctor.
2. In order to fully understand the health condition of our employees, assign the most suitable job, and prevent occupational illness, in addition to establishing medical care and emergency staff according to law regulations, health examinations are conducted for new employees, periodic health examinations for active employees and special health examinations for workers exposed to hazardous operation. For employees with exceptionally abnormal results from the health examination, the plant nurse will provide tracking and care for their health conditions, and when necessary, they may consider adjustments or modifications to their job content.
3. Between June and July of every year, the Taoyuan Plant will organize for Taipei Veteran General Hospital - Taoyuan Branch to conduct health examinations and special health examinations for all factory employees, health condition comparison charts will be provided to every employee after the examination for better health management; according to health examination results and the plant’s characteristics, the Veteran General Hospital - Taoyuan Branch will conduct a series of health lectures every month, promoting employees’ prevention and awareness of occupational illness. Kunshan plant will have the Work Safety and Health Department collect the health conditions comparison charts, exhibiting posters regarding occupational illness prevention and awareness through the exhibition portal every month, promoting employees’ prevention and awareness of occupational illness.
4. In Mar. 2015, the Company’s Taoyuan Plant has successfully passed the OHSAS18001 system’s annual review once again, ensuring the effective operation of the Company’s Work Safety Management System. In Jan. 2015, Kunshan Plant has also passed the OHSAS18001 system’s annual review, ensuring effective operation.
5. To enhance the safety awareness of the two plants, carrying out a monthly security rating of the each class in two plants, as well as taking forward the relevant security activities. Hopefully the purpose of production safety will be achieved by the giving reward or punishment according to the rating result of each month.
6. Industrial safety improvement actions of Taoyuan and Kunshan plant of year 2015
   1. The implementation of the construction upon safe production standardization, and obtained the approval by the superior of Administration of Work Safety.
   2. The renovation of aging fire pump equipment.
   3. The renovation of fire-control equipment on the first floor of C building.
   4. The renovation of chemical liquid storage area.
   5. The implementation of safety education system and investigation & management of potential risks.
   6. Quarterly lecture courses of health related topics, and reduce the incidence of occupational injuries.
7. Work safety improvement plan of Taoyuan plant in year 2016
   1. Installation of dual low liquid level detectors in the chemical liquid heater of production line, to prevent burn-out situation.
   2. Implementation of temperature measuring operation at every heated spot of the machines and equipment, to prevent industrial safety hazard occurrence
   3. Implementation of Electrical equipment<distribution box, electrical control box equipment> Control Measures, to prevent the operating personnel from getting electrical shot.
   4. Continue to promote health management, and put it into practice to protect the health of employees.
8. Work safety improvement plan of Kunshan plant in year 2016
   1. Continuous implementation of construction upon safe production standardization.
   2. Strengthening grade 3 education and training for new staff.
   3. Continuous revision of each post’s operation safety rules.
   4. Continue to take action to investigate and control the potential risks, develop and implement safety inspection program.
   5. Enhancing all personnel’s security level to a higher standard, change the Security Review mechanism unit from ministry to class.

Stable and Healthy Labor/Management Relations

In personnel recruitment, Dynamic strictly complies with international and governmental labor laws, respects for the Gender Equality and welcomes the fresh people. In addition, Dynamic encourages new immigrants into workplace. By means of tutoring, Dynamic helps new immigrants to develop skills and build confidence in workplace and helps the female immigrants walking out of the family into the workplace to enjoy equal opportunity in work.

Dynamic Retirement System
1. Since Jul. 1, 2005, The Company has implemented labor retirement policy, and utilizes a defined contribution system. Upon implementation, an employee is able to choose from between retirement policies in the Labor Standards Act, or to use this policy and to keep the working years prior to its implementation. After July 2005, complying with the government policy of using individual retirement reserved fund accounts, the Company sets 6% of labor salary as labor retirement reserved funds, and saves this amount in the individual labor retirement reserved fund account.
2. In order to offer employees more flexibility in planning their career and life, the Company has successfully established the management policy for the golden handshake, and reported this to the authorities for approval.
3. Under the planning of the remuneration committee in year 2010, the Company will entrust the manager retirement management policy, in order to establish a more comprehensive personnel retaining system.
4. Regulations for the Management of the Workers' Retirement
(1) Voluntary retirement
A worker may apply for voluntary retirement under any of the following conditions:
    ●Those who have worked in the company for more than fifteen years and have reached the age of fifty-five.
    ●Those who have worked in the company for more than 25 years.
    ●Those who have worked for more than ten years and have reached the age of sixty.
(2) Mandatory retirement
A worker shall be forced to retire under any of the following conditions:
    ●Those who are 65 years of age or older.
    ●Loss of mind or physical disability to perform the job.
    ●According to the Labor Standards Act Article 55, Paragraph 1, Subparagraph 2, an additional 20% shall be given to workers forced to retire due to disability incurred from the execution of their duties.
(3) Preferential retirement conditions
Employee whose age and job tenure total more than 60 can apply to the company for preferential retirement and apply for retirement pensions in accordance with the old retirement system of Labor Law.
(4) Employee pension payment standard is as follows:
The job tenure that is applicable before and after the Labor Standards Act and the choice of remaining with the "Labor Standards Act" pension regulation according to the Labor Pension Act or keeping the job tenure that is applicable before the Labor Pension Act, the pensions are issued in accordance with Article 84-2 and Article 55 of the Labor Standards Act.
    ●For the workers by the old retirement system who voluntarily retire or forced to retire, the pension payment standards are as follows:
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. The length of service is calculated as half year when it is less than six months and as one year when it is more than six months.
    ●(1~15 years)×2 base + (16 years~)×1 base≦45 base.
    ●For employees who are eligible for the new labor retirement system, the company will contribute 6% (or more) of their monthly wages to their employees' retirement pensions on monthly basis.
(5) Voluntary retirees should fill out an employee retirement application form for approval before applying for the pension.
(6) The retirement pension of the resigned employee shall be paid within 30 days from the date of retirement; the pension application that meets the job tenure of the new retirement system shall be processed in accordance with the new system of labor retirement regulations.

Communication and Grievance Mechanisms

• Set up CEO mailbox: Provide a channel readily available to receive illegal report. The Chairman reads each letter, treating it seriously and handling it actively.
• Mailbox for Unreasonable: Provide employee feedback and give appropriate reply for the unreasonable of management or system in the company. The one who opens the letters must keep permanent secrecy for the complainant and reply the processed results within 7 days.
• The company holds regular quarterly meetings of labor/management, industrial safety and health committees. Meanwhile, the company holds monthly management meeting for two-way communication, enabling the company to understand the needs of employees, while employees to understand the operational changes that may cause a significant impact on the company.

Training and Education System A competency-oriented learning and development system is established and implemented to ensure personnel of all levels receive appropriate training, so as to improve their skills and literacy and thereby achieve organizational objectiveness and effectiveness. In 2013 we established a library and began aiding in-service training to help employees to accumulate expertise, learn management skills. In addition, to encourage employees to learn a second language, we hired qualified foreign language teachers to give language classes at the plant to sharpen the foreign language command of employees. By collaborating with professional film directors, we also built an e-learning platform for new employees to quickly acquire their work contents and skills through vivid educational films. To further establish a “learning” corporate culture, we planned a total of at least 12 hours of annual training objective for grades 21-43 employees, up to 639 people.

Employee Care and Development Employees are important resource to Dynamic. To take good care of employees, improve employee satisfaction and reduce attrition rate, apart from complying with labor-related laws and regulations, a series of employee care projects were implemented at both Taoyuan Plant and Kunshan Plant at the same time at the end of 2012. Under these projects, comprehensive benefits were provided with reference to the need of local employees, so as to ensure employees are cared and concerned for both physically and mentally.