Major Victory in Court－

“China Steel Express Faces Another Legal Setback”

“Return the retirement pension fund to its seafarers NOW”

Despite facing penalties from the Bureau of Labor Insurance and receiving a final judgment from the Supreme Administrative Court, China Steel Express continues to assert that "Special Bonus I" is not categorized as part of seafarers' wages. This persistent refusal to acknowledge the inclusion of this bonus in salaries has led to a prolonged practice of under-declaring wages, resulting in inadequate contributions to retirement funds. Furthermore, the company has cited the ongoing High Court litigation as an excuse for not rectifying the gap in the funds.

In the recent judgment (Case No. 36 of the Labor Division in 2021) by the Kaohsiung Branch of the High Court, the last veil covering China Steel Express's unlawful actions was lifted. The court emphatically stated that "Special Bonus I" is indeed considered wages. The judgment reads, "Special Bonus I is a reward obtained by China Steel Express’s seafarers for special tasks, including overtime pay for national holidays, year-end bonuses, and other non-fixed overtime pay. Considering the nature of the vessels, sailing conditions, and job characteristics, overtime pay is not easily calculated per task, hence provided in a fixed amount for non-fixed overtime work. The treatment guidelines for seafarers provided by China Steel Express are on record. It can be seen that Special Bonus I is remuneration for the services (special tasks) provided by seafarers on board, possessing a quid pro quo nature. Given its regularity in disbursement, Special Bonus I should be considered wages under the Labor Standards Act and should be included in the calculation of average wages for retirement benefits.

From the first penalty imposed on China Steel Express in 2021 to today in 2024, the company has stubbornly clung to the baseless assertion that "Special Bonus I" is not part of wages. Despite three years of ongoing efforts by the union, the Ministry of Labor, various levels of courts, legislators, and experts unanimously recognize that "Special Bonus I" is indeed considered wages, aligning with the basic principles of labor laws. Here, the union reiterates a key statement from the Supreme Administrative Court's judgment: "China Steel Express has a considerable scale of business operations, understands the labor laws, and has the obligation to comply with them. If there are still doubts, they can seek clarification from the competent authority and must not escape administrative penalties based solely on their subjective interpretation."

The union urges China Steel Express not to persist in its unilateral stance. There is no international perspective supporting the view that seafarers' "Special Bonus I" is not part of wages. The company should respect the laws, uphold the basic legal standards as an employer, and immediately fulfill its obligation to contribute to the seafarers' retirement funds for the past 15 years. Provide seafarers with the minimum retirement security they deserve!