Happy Workplace

China Airlines is dedicated to establishing a caring and protective enterprise. Through providing employees with total care and support, enhancing employees professional competence, enforcing mutual communication between CAL and employees, building a safe working environment, we provide employees with a happy workplace and an enjoyable lifestyle.

Employee Development

CAL emphasizes on the development of employees and ensures the training courses enhance their skills. CAL also improves the competencies of the Company's managers at various supervisory levels, and cultivate managerial capabilities and perspectives among personnel with potential for advancement.

Training Systems and Framework

China Airlines establishes sound training systems and structures to cultivate employees. We adopt diversified training methods, including virtual reality, invest in training hardware and software facilities, and develop training courses in accordance with the related regulations. CAL emphasizes the development of employees and ensures that the training courses will enhance their skills. CAL also improves the competencies of the Company's managers at various supervisory levels, and cultivates managerial capabilities and perspectives among personnel with potential for advancement. Education and Training Structure: The Training Advisory Committee was established based on the demand of education and training to arrange the planning of annual education and training activities for all employees. The primary strategic objective of CAL's training and development program is to enhance employees' job skills. The training framework of the "China Airlines Lecture Hall" is adopted to ensure that all employees are equipped with the capabilities to carry out their duties and job functions. In 2017, CAL invested about TWD 390 million in training and development. The total number of training time exceeded 320,000 hours, and the training completion rate reached 98.27%.

Education and Training Structure

Employee Development Programs in 2017

Employee Development Program Business Benefits Quantitative Impact of Business Benefits Proportion of Employee Participation in the Program

Sales and marketing related training, such as passenger ticketing, new product sales sales sills, market analysis, basic freight knowledge, and so on.

  • Improve the sales skills and knowledge.
  • Enhace the sales service.
  • Develop new markets and maintain customer relationships.
  • Operating revenue increased by NTD$15,089,225,000 in 2017 compared to last year. Proportion to total employees:7.8%

    Emergency escape refreshment training for maintenance, ground services, cabin crews and flight operations.

  • Elevate the safety awareness and enhance the security awareness.
  • Be familiar with the operating procedures.
  • Be familiar with the emergency reaction procedures.
  • Number of flights in 2017: 88,136
  • GDI direct lost in 2017 due to human factors:US$118,817
  • Proportion to total employees: 56.80%
    Maintenance: 2,602
    Cabin crews: 3,133
    Ground services: 394
    Flight operations: 1,053

    Regular service related training for cabin crews and ground service employees to strengthen the service concept and skills.

  • Recall the passion of service.
  • Enhance the service techniques.
  • Strengthen the professional ability to handle and solve problems.
  • Reduce customer complaints and elevate the service quality.
  • Enhance the service quality and reduce compensation issues derived from customers to increase customers' willingness to choose on CAL again.
  • The customer satisfaction of ground service in 2017: 87.2
  • The customer satisfaction of cabin crews:86.8.
  • Proportion to total employees: 41.31%
    Cabin crews: 3,476
    Ground services: 1,748

    Training for pilots based on regulations and fleet plans to ensure safety

  • Enhance flight safety.
  • Comply with regulations and get familiar with flight operations.
  • High-level risk of unsafe events due to pilot human factors: 0 Proportion to total employees: 8.33%
    Pilots: 1,053

    Note: To reduce GDI (Ground Damage Incident) of aircraft, CAL organizes periodical trainings for front-line employees.

    Industry-Academia Collaboration

    CAL has promoted campus talent cultivation programs since 2013 by taking advantage of its abundant practical experience and comprehensive aviationrelated training facilities and courses. In order to cultivate talents, CAL has cooperated with colleges and universities nationwide to provide internship programs that last for six months to one year with various of fields, including maintenance, ground services, cargo loading, information technology, and educational technology. CAL also offers interns scholarships and allowances and arranges training courses for them. Interns are required to finish the training courses before participation. In 2017, CAL was awarded the Top 20 Youngsters' Favorite Brands by Cheers magazine. For many students, CAL is also one of the ideal companies for internship. With industry-academia collaboration, CAL hopes to be helpful to students' career planning by providing them an opportunity to learn the operations and working conditions of an airline company. CAL also expects to recruit outstanding talents through industryacademia collaboration. In 2017, a total of 149 students participated in the industry-academia collaboration programs and summer internship programs.

    Maintenance Talent

    Industry-academia cooperation programs help promote training in aerospace technology maintenance and repair through a series of comprehensive aircraft maintenance courses. Outstanding students are offered opportunities to work for the CAL in the future.

    Aerospace Engineering Talent

    Civil aviation courses are offered in collaboration with universities to bridge academic theory with practical skills. Students who have successfully completed the civil aviation program are given priority to be hired by CAL.

    Campus Talent Incubation

    In cooperation with a number of educational institutions, CAL offers students training in professional customer service, ticketing, and marketing. The goal is to cultivate sales and marketing talent in the aviation industry. In addition, outstanding teachers within the CAL are also recruited as lecturers to conduct aviation management and service management courses at various universities so as to enhance the practical aspects of on-campus theoretical training.

    Industry-Academia Collaboration (149 students)


    Maintenance
    Chung Yuan Christian University, Yuan Ze University, National Taiwan University of Science and Technology, Taipei University of Science and Technology, National Formosa University, National Kaohsiung University of Applied Sciences, National Kaohsiung First University of Science and Technology, Tamkang University, Feng Chia University, National Yunlin University of Science and Technology, and National Chin-Yi University of Technology
    Education Technology
    National Taiwan Normal University
    Information Management
    National Kaohsiung First University of Science and Technology
    Ground Services (one-year term)
    Chinese Culture University, Shih Chien University, National Kaohsiung University of Hospitality and Tourism, National Kaohsiung University of Applied Sciences, I-Shou University, National Kaohsiung First University of Science and Technology, Hsing Wu University, Feng Chia University, Vanung University, Wenzao Ursuline University of Languages, Overseas Chinese University, Providence University, Yuan Ze University, and National Yunlin University of Science and Technology
    Ground Services (short term)
    Kainan University, Vanung University, and Lunghwa University of Science and Technology
    Freight Transport (one-year/half-year)
    National Formosa University and National Yunlin University of Science and Technology

    Summer Internships
    National Chiao Tung University, National Chung Cheng University, National Kaohsiung Marine University, National Kaohsiung First University of Science and Technology, National Chin-Yi University of Technology, National Taiwan University of Science and Technology, National Taiwan Ocean University, Tzu Chi University, Soochow University, Chang Jung Christian University, Aletheia University, Tamkang University, Feng Chia University, Shih Chien University, Fu Jen Catholic University, and Ming Chuan University.
    Summer Internship Visit to the Maintenance Park in 2017.

    Employee Rights

    In 2017, there were no major disputes between CAL and the labor union, such as strikes. However, in order to protect employees' rights and interests, the labor union continued to address many requests to optimize working conditions and raise and benefits. After the amendments of the Labor Standards Act, CAL will communicate with the labor union to reach an agreement that supports mutual benefits.

    Salary and Benefits

    CAL firmly believes that employees are the most valuable assets and that it is important to accommodate both employee benefits and shareholders' equity. For these reasons, CAL provides competitive salaries and benefits for employees. The salary and benefit package of each employee will not differ due to one's gender, race, religion, political affiliation or marital status. Whenever the minimum wage of a particular location in the world being raised, we promptly review our salary standards and make necessary adjustments.

    Male/Female Salary Ratios of CAL Group in 2017

    Male/Female Base Salary Bonus
    Business operations 1.19 1.32
    Flight and cabin crews 2.64 1.85
    Maintenance personnel 1.17 1.18
    Others 1.21 1.24
    Male/Female Base Salary Bonus
    Business operations 1.02 1.03
    Flight and cabin crews 1.17 1.62
    Maintenance personnel 1.02 1.41
    Others 1.08 1.27
    Male/Female Base Salary Bonus
    Business operations 1.41 1.07
    Flight and cabin crews 3.45 2.48
    Maintenance personnel N/A N/A
    Others 0.93 0.79

    Note 1: Flight and cabin crews included pilots and cabin crews; others included executives higher than the ranking of vice president, auditors, accountants, information technology personnel and other employees that are not within the aforesaid categories.
    Note 2: The maintenance personnel of Tigerair Taiwan consisted of male employees only.
    Note 3: Flight and cabin crews included pilots and cabin crews. Male pilots were the majority and their wages and allowance were five times higher than cabin crews. Therefore, the salary ratio in the flight and cabin crews was much higher than that in other categories.

    Annual Bonus
    Profiit Sharing

    Retiree Association

    Employee Benefit

    Annual Leave Scheme

    Childcare Benefits

    Group Health Insurance

    Commuting

    Concession Tickets

    Employee Stock Ownership Trust

    Retirement Scheme

    Pension Scheme

    CAL values employees' rights and interests. CAL reports regarding the pension reserve fund to the Labor Pension Reserve Supervisory Committee on a quarterly basis. Prior to the end of the year, CAL estimates the amount of pension for the following year in accordance with the regulation. In terms of the rate of allocation, the rate for the latest labor retirement plan is 6%. The rate under the former labor retirement plan was 15%, which reached the statutory upper limit, and this amount has been fully reserved in accordance with Article 56, Paragraph 2 of the Labor Standards Act to ensure that employees can receive the retirement benefits that they are to get.

    Salary, Benefits and Pension Reserve Fund of CAL Group

      2015 2016 2017
    Salary 12,223M 15,831M 15,760M
    Benefits 243M 207M 216M
    Pension reserve fund 1,839M 4,959M 5,710M
      2015 2016 2017
    Salary 515M 631M 699M
    Benefits 7.5M 7.8M 6.3M
    Pension reserve fund 213.6M 191M 243M
      2015 2016 2017
    Salary 246.2M 436M 646M
    Benefits N/A
    Pension reserve fund 0.27M 1.58M 1.42M
    Unit: Million TWD

    Note:Benefits offered by CAL/Mandarin Airlines include travel subsidies, allowances for the elderly, scholarships, Labor Day bonus, and spring party and anniversary expenses.

    Friendly Workplace

    CAL cares deeply about the balance between physical and mental health of our employees. Each year, we organize a number of activities that foster a friendly workplace and provide care for our employees. In 2017, we organized seven employee care activities, including board games, exercises and the seminar entitled Talking to Children - Love, Homosexuality, and Bullying, to promote the benefits of exercising for stress relief and share parental experience, and around 200 employees participated. In addition, employees were invited to have rice balls at the Winter Solstice Festival and had a good time together. We encourage employees to pursue a healthy and sustainable lifestyle of balance between mental and physical health.

    Exercise Session

    Winter Solstice Festival Event

    Seminar: Talking to Children

    Employee Communication

    To CAL, employees are members of our family. We maintain multiple avenues of communication with our employees, such as regularly scheduled labor-management consultation meetings, which allow us to express our goodwill and actively respond to the concerns of employees. In turn, we strive to find solutions to problems and build consensus with labor unions. When facing the significant changes in operations affect the interest of employee, CAL will pre-notice the situation in order to comply with the labor regulations and also promptly communicate with the labor union and employees. Information regarding major issues facing CAL and the latest news about employee rights are made available on CAL's corporate website or e-mailed to all employees.

    Versatile Communication Channel

    Labor-Management Consultation Meeting

    Headquarters Meeting:Held every two months attended by employee representatives of CAL Employees Union.
    Branch Union Meetings (6 Branches):Branch labor-management meeting held every season attended by branch union representatives. Union internal meeting held every month by branch union representatives.

    Supervisor Mailbox

    CAL encourages employees to express opinions and advices to their supervisor mailbox.

    "Speak Your Mind" Employee Portal

    CAL encourages employees to express opinions and advices to "Speak Your Mind" Employee Portal in the corporate intranet website.

    Employee Care Mailbox

    CAL provides the dedicated mailbox for complaints pipeline (wecare@china-airlines.com).

    Labor Unions

    At present, CAL cooperates with several labor unions including China Airlines Employees Union (CAEU), Taoyuan Flight Attendant Unions and other Unions, and remains committed to maintaining open communications in order to negotiate reasonable agreements. We show the same respect to all unions and devote considerable resources in accordance with law. In particular, the CAEU is a member of the Chinese Federation of Labor in Taiwan. There are six branches under CAEU according to the members' duty and working areas:

    • Branch 1 : Divisions in Head Office
    • Branch 2 : Flight Operations Division
    • Branch 3 : Cabin Crew Division and In-flight Service Supply Division
    • Branch 4 : Maintenance Division, Engineering Division, Quality Assurance Division
    • Branch 5 : Taipei Branch, Ground Service Division and Cargo Sales, Marketing & Service Division
    • Branch 6 : Kaohsiung Branch.

    In 2017, there were 10,704 CAL employees joined in CAEU, representing 99.60% participation rate, meanwhile there were 752 Mandarin airlines employees joined in Mandarin Union, representing 88.16% participation rate. In 2002, CAL made a collective agreement with CAEU - the first of collective agreement in Taiwan's airline industry. The agreement, which currently remains in force, stated clauses regarding union activities, labor-management meetings and dispute resolution, employment and termination, working hours, leave and vacation, salary, allowances and bonuses, personnel transfers, rewards, and disciplinary actions, benefits, training, and occupational safety and health issues. The purpose is to protect and enhance employees' rights. CAL is going to renew the collective agreement with CAEU in 2018 to maintain a stable relationship between management and labor.

    CAL cooperates with CAEU as partners and periodically communicate with each other through various of channels. In addition to holding monthly regular meetings between the head office and CAEU, front-line units and their union representatives hold labor-management conference every month to discuss the proposals from members. Meeting minutes are taken in all of these meetings and then being submitted to the respective supervisory units. Meeting minutes taken at labor-management meetings held at CAL head office are published and available for all employees on CAL's corporate website. Moreover, CAL tracks the status of follow-up actions for proposals made in every labor-management meeting and then reports its findings at each subsequent meeting. CAL is dedicated to maintaining harmonious labor-management relations through open channels of communication and efficient modes of operation.

    Maintaining harmonious labor-management relationship is important to Tigerair Taiwan. Tigerair Taiwan shows an open-minded attitude to make sure that all employees have the opportunities to fully express their opinions. In addition to the employees' mailbox and Chairman's mailbox, monthly meetings for flight operations and flight safety, technical seminars, and labor-management meetings are held on a regular basis. Issues discussed in the labor-management meetings will be tracked. Meeting minutes will be reported to management level and published available for all employees in the public folder to ensure smooth communication between labor and management.

    Union Participation Rate of CAL and Mandarin Airlines
    • Note 1: Participants refers to the number of people in the year; hourly-basis employees, interns, contract employees and the management level are not included.
    • Note 2: Tigerair Taiwan does not have a labor union currently.
    • Note 3: Mandarin Airlines does not have labor union in China.

    Employee Engagement

    We view employees as our most valuable assets. This is why we set a variety of channels to communicate, and listen carefully to our employees' suggestions. Through the biyearly satisfaction survey, we understand more about employees' views and needs. It provides important information for us to provide our employees a stable work environment, increase efficiency, and achieve a positive and sustainable corporate culture.

    CAL conducted the "Walking with CI" employee engagement survey from late March to early April in 2017. The anonymous questionnaire was conducted by an external consulting firm covering six major categories, including Employee Engagement, Salary and Benefits, Job Potentials, Work Environment, Management Culture, and Corporate Culture, from highest to lowest satisfaction. We also analyzed the results based on gender. The result of our analysis showed that there was no significant difference between genders. The analysis report was sent to the supervisor of the unit with lower satisfaction to help him/her understand potential problems and make improvement plans.

    Employee Engagement

    1. Encouraged employees to reduce the rate of leave application by stipulating that those with full attendance for three years and cabin managers are entitled to change shifts with no limitation.
    2. Published the monthly important notices, praise outstanding ground service employees and share improvement recommendations made by ground service employees.

    Salary and Benefits

    1. Raised allowances for ground employees and travel expenses for aircrews in May 2017.
    2. Arranged lunch delivery service in the maintenance park since January 3, 2018.
    3. Adopted the leave scheduling system for ground service employees to decrease difficulties to find deputies, and started from January 2017.

    Job Potentials

    1. Internal recruitment is the first priority for available positions. Information regarding available positions will be published in the internal recruitment system. In 2017, 18 internal recruitments were organized. A total of 56 vacancies were released from 11 Divisions and recruited 43 employees, with an achievement rate of 76.79%.
    2. Held three career experience camps with 92 participants.
    3. Set up an advanced training system for cabin managers.
    4. Hired outstanding interns from industry-academia programs as full-time hourly-paid employees.
    5. Planned a review and development system for maintenance personnel in October 2017.

    Work Environment

    1. Updated and improved equipment at offices, workplaces, and public areas to create a friendly workplace.
    2. Set up motorcycle parking space with roof in the engine factory in July 2017.
    3. Replaced safety equipment(helmets) during October 2017 to March 1, 2018.
    4. Renovated T2 staff lounge with a breastfeeding room to provide a comfortable environment during breaktime.

    Management Culture

    1. Organized training courses, such as Employee Care and Interaction, Cross-generation Communication Skills and Problem Analyzing and Solving, for supervisors to improve their ability to communicate and solve problems and enhance trust between CAL and employees.
    2. Held labor-management meetings on a regular basis to listen to employees' opinions.
    3. From 2017 to January 2018, the Maintenance Division organized 17 discussions between the director and employees; in addition, the director had interviews with supervisors at all levels of Engineering & Maintenance Organization (EMO), potential employees, and punished employees (4 sessions) to share the concept of management and show careness.

    Corporate Culture

    1. Flight safety and discipline are the fundamentals of CAL. In 2017, a series of activities were organized, such as interview, safe story, "Risk & Me" quiz contest and safety video, to improve safety and discipline.
    2. The Flight Operations Division promoted discipline and passion for service in cabin manager meetings to improve the quality of service.

    Healthy and Safe Workplace

    In accordance with the Labor Standards Act, CAL has established an Occupational Safety and Health Committee. The committee is tasked with the objective of preventing occupational hazards and protecting the safety and health of all employees by reviewing, coordinating, and making recommendations pertaining to safety and health related matters. The President acts as the chairperson. One deputy chairperson and one executive secretary are appointed.

    Members consist of Division managers, occupational health and safety employees, engineers, and medical personnel from related units as well as labor representatives appointed by labor unions. A meeting is held once every three months to review and analyze the CAL occupational incidents and compile relevant statistics. All incidents are tracked and reported to the management so that relevant health management solutions can be subsequently developed. In 2017, a total of 12 safety and health proposals were reviewed and discussed, and 11 of which were completed and 1 are still ongoing. Meeting minutes were published on the EIP website. There were 107 occupational safety reports, 107 of which were improved and completed, with the achievement rate of 100.00%.

    Five Major Objectives of China Airlines'
    Occupational Safety and Health Initiatives


    Proportion of Labor Representatives in Occupational Health and Safety Committee CAL, Mandarin Airlines and Tigerair Taiwan Occupational Health and Safety Committee in 2017

    Occupational Safety and Health Committee 2015 2016 2017
    Proportion of labor representatives in Taipei Branch (%) 33.33 36.36 36.36
    Proportion of labor representatives in Taoyuan (%) 35.71 37.04 38.45
    Proportion of labor representatives in Kaohsiung Branch (%) 38.00 38.00 38.00
    Proportion of labor representatives in EMO (%) 34.78 34.78 34.78
    Occupational Safety and Health Committee 2017
    Proportion of Labor Representatives 33.33
    Occupational Safety and Health Committee 2017
    Proportion of Labor Representatives 38.46

    Note 1: Proportion of labor representatives: (Labor representatives of Occupational Health and SafetyCommittee/Total members of Occupational Health and Safety Committee)*100%.

    Staying Up-to-Date with International Standards Through Dual Certification for Occupational Health and Safety

    CAL is committed to creating a safe, healthy, and comfortable working environment for all employees. We have established a standalone safety and health management system and continue to improve our safety and health facilities to carry out independent management. At the same time, we have enhanced our workplace risk management and control capabilities to meet international standards. With the consulting services provided by the SGS certification institution, we have successfully been certified with the OHSAS 18001 and CNS 15506 occupational safety and health management systems, allowing us to effectively control risks associated with occupational hazards. By improving our occupational safety and health management performance, we are able to better safeguard the health and safety of employees and enhance our competitiveness in the industry.


    Workplace Injury, Illness, and Fatality Statistics of CAL Group in 2017
      Disabling frequency rate Disabling injuries severity rate Occupational disease rate Absence rate Incidents resulting in work-related fatalities
    China Airlines 4.07 54.00 0 0 1.32%
    Mandarin Airlines 6.65 542.35 0 0 0.92%
    Tigerair Taiwan 1.60 9.59 0 0 0.01%
    • Note 1: Disabling frequency rate = (Number of annual disabling injuries ÷ Annual working hours) × 1,000,000
    • Note 2: Disabling severity rate = (Absence days of annual disabling injuries ÷ Annual working hours) × 1,000,000
    • Note 3: Absence rate = (Absence days ÷ Annual working day) × 100%