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.

Sound Training System and Framework

CAL has established a sound training system and framework to develop aviation professionals. We adopt diversified training methods, including on-site and online training courses, invest in training hardware and software, and develop training courses in accordance with related laws and regulations. CAL values the functional development of employees and integrates fundamental aviation training with hands-on practice. In addition, CAL organizes business strategy and management- related training for all managerial levels and employees with potential on a regular basis to improve their horizons and expertise.

Based on the demand of education and training, the Training Advisory Committee has been established to plan annual education and training activities for all employees. The primary strategic objective of CAL's training and development program is to enhance employee job skills. Adopting the training framework of China Airlines Lecture Hall, CAL ensures that all employees are equipped with skills to perform their duties and job functions.

In 2018, CAL invested about TWD 290 million in employee training and development. The total number of training hours exceeded 330,000, and the completion rate of training reached 97.09%.

Education and Training Structure

Employee Development Programs in 2018

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

Training for Passenger Transport Marketing Personnel (Ticketing, New Product Sales, Marketing Skills and Observation, Knowledge of and Marketing Skills in Cargo Transport)

  • Improve the professional skills and knowledge of passenger and cargo transport marketing personnel
  • Improve the overall quality of service
  • Increase customers, supply, and revenue
Operating revenue increased by TWD 10,449,581,000 in 2018 compared to last year Proportion to total employees: 7.7%

Emergency Escape Refreshment Training for Maintenance, Ground Services, Cabin Crew Members, and flight operations

  • Elevate safety awareness and enhance the security awareness
  • Be familiar with the operating procedures.
  • Be familiar with the emergency reaction procedures.
Number of flights in 2018: 87,961 GDI direct lost in 2018 due to human factors: USD 125,658 Proportion to total employees: 73.40%
Maintenance: 2,571
Cabin crews: 3,344
Ground services: 1,861
Flight operations: 1,341

Regular Service Training for Cabin Crew Members and Ground Services Employees to Strengthen Service Concepts 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 quality of service and reduce compensation issues derived from customer complaints to increase the revisit rate
The customer satisfaction rate of ground services in 2018: 89
The customer satisfaction rate of cabin crew members: 88.9
Proportion to total employees: 36.90%
Cabin crews: 3,424
Ground services: 1,165

Refreshment Training for Pilots based on Fleet Plans and Regulations to Ensure Flight Safety

  • Enhance flight safety.
  • Comply with regulations and get familiar with flight operations.
High-level risk of unsafe events due to negligence of pilots: 1 Proportion to total employees: 10.80%
Pilots: 1,341

Note: To reduce GDI (ground damage incidents), CAL organizes training for front-line employees on a regular basis.

Industry-Academia Collaboration

CAL has promoted its campus talent development program since 2013 by taking advantage of its abundant practical experience and sound aviation training facilities and courses. In response to the government's policy on industry-academia collaboration and talent development, CAL has cooperated with colleges and universities nationwide to offer internship programs that last for six months to one year in various fields.

CAL also offers interns scholarships and allowances and arranges training courses for them. To start an internship, interns are required to pass the training courses first. In 2018, CAL was awarded a place in the Top 20 Youngsters' Favorite Brands by Cheers magazine (for the eighth consecutive year since 2011). For many students, CAL is also seen as one of the ideal companies for starting an internship. With industry-academia collaboration, CAL expects to benefit students' career planning by providing them with an opportunity to learn airline operations and working conditions. CAL also expects to recruit outstanding employees through industry-academia collaboration.

In 2018, a total of 109 students participated in the industry-academia collaboration program and the summer internship program.

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 in 2018 (109 Students)

Ground Services (1-year)
Dayeh University, Chung Hua University, China University of Science and Technology, Wenzao Ursuline University of Languages, Cheng Shiu University, Soochow University, National Taiwan Ocean University, Chien Hsin University of Science and Technology, National Kaohsiung University of Science and Technology, National Kaohsiung University of Hospitality and Tourism, National Yunlin University of Science and Technology, Feng Chia University, I-Shou University, Shih Chien University, Ming Chuan University, Takming University of Science and Technology, Hsing Wu University, and Providence University
Summer Internship
National Taipei University of Technology, National Formosa University, National Kaohsiung University of Science and Technology, National Yunlin University of Science and Technology, National Taiwan University of Science and Technology, National Cheng Kung University, Asia University, Chinese Culture University, Feng Chia University, and Tamkang University
Education Technology
National Taiwan Normal University
Ground Services (short term)
Kainan University, Vanung University, Lunghwa University of Science and Technology, Yuan Ze University, and National Taipei University of Business
Cargo Transport (1-year / Half-year)
National Formosa University, National Yunlin University of Science and Technology, Yuan Ze University, and Feng Chia University
Summer Internship Completion in 2018

Employee Rights

CAL attaches great importance to the opinions and well-being of its employees. In addition to regular reviews of employees' salary and benefits and labor-management meetings, CAL has established a number of communication channels and activities to enhance cohesion. CAL also respects the independence of labor unions in accordance with the law and expects positive interaction.

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 its employees. The salary and benefit package of each employee will not differ according to gender, race, religion, political affiliation, or marital status. Whenever the minimum wage of a particular global location is raised, we promptly review our salary standards and make necessary adjustments. In 2018, CAL adjusted salaries by 3% on average. Employees who are required to work overtime due to the nature of their employment receive reasonable overtime pay in accordance with the regulations. No employee is forced to work overtime against his or her will.

Male/Female Salary Ratios of CAL Group in 2018

Male/Female Base Salary Bonus
Business operations 1.23 1.24
Flight and cabin crews 1.96 1.92
Maintenance personnel 1.12 1.12
Others 1.20 1.22
Male/Female Base Salary Bonus
Business operations 1.02 1.02
Flight and cabin crews 1.17 1.83
Maintenance personnel 1.05 1.47
Others 1.08 1.26
Male/Female Base Salary Bonus
Business operations 1.20 1.34
Flight and cabin crews 3.15 2.33
Maintenance personnel N/A N/A
Others 1.13 0.76

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 attaches great importance to the rights and interests of its employees. CAL reports the management of the pension reserve fund to the Labor Pension Reserve Supervisory Committee on a quarterly basis. Prior to the end of each year, CAL allocates the amount required for the following year based on actuarial calculations and related regulations. In terms of allocation rates, the rate for the new labor retirement plan is 6%; the rate for the old labor retirement plan is 15%, which reaches the statutory upper limit, and this amount has been fully allocated in accordance with Paragraph 2, Article 56 of the Labor Standards Act to ensure that employees receive retirement benefits to which they are entitled.

Salary, Benefits and Pension Reserve Fund of CAL Group

Item 2016 2017 2018
Salary 15,831M 15,760M 16,580M
Benefits 207M 216M 203M
Pension reserve fund 4,959M 5,710M 6,184M
Item 2016 2017 2018
Salary 631M 699M 780M
Benefits 7.8M 6.3M 6.8M
Pension reserve fund 191M 243M 384M
Item 2016 2017 2018
Salary 436M 646M 724M
Benefits N/A N/A 3.65M
Pension reserve fund 1.58M 1.42M 1.90M

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 physical and mental health of its employees. Each year, we organize a number of activities that foster a friendly workplace and provide care for our employees. In 2018, we organized 11 employee care activities, including fat burning exercises, origin point massages, planting, and yoga. Aimed at promoting the benefits of exercise for stress relief, these activities saw the participation of around 380 employees. The Company also held seminars on health care as well as CAL Sky Day and a Christmas party, encouraging employees to pursue a healthy and sustainable lifestyle that promotes work-life balance.

Fat Burning Exercise

Origin Point Massage

Employee Communication

Each and every employee matters to CAL. We maintain multiple avenues of communication with our employees, such as regularly scheduled labor-management meetings. These allow us to express our goodwill and actively respond to the concerns of our employees. We also strive to make improvements. We have established an employee care mailbox, a sexual harassment mailbox with an associated grievance hotline, and a "speak your mind" employee communication mailbox. In addition, our internal company messaging software, Team+, enables employees to express their opinions and make suggestions at any time. When facing significant changes in operations that affect employees, CAL will

provide notices to comply with related labor regulations and also promptly communicate with labor unions and employees. Information on material issues and the latest news about employee rights are made available on CAL's website or e-mailed to all employees. In the event that an employee expresses concern about certain internal regulations or practices, the Company will seek to clarify the issue and communicate with employees more frequently.

Versatile Communication Channel

Quarterly Labor-Management Meetings

Meetings are held on a regular basis for CAL to communicate with the representatives of CAEU. Meetings between divisions and corresponding branches of CAEU are also held separately. In meetings, labor and management communicate face-to-face on collective employee rights, benefits, working conditions and work environments.

Supervisor Mailbox

CAL encourages employees to express opinions and advice through the supervisor mailbox.

"Speak Your Mind" Employee Portal

CAL encourages employees to express opinions and advice through the "Speak Your Mind" Employee Portal on the intranet.

Employee Care Mailbox

The Human Resources Division has set up the employee complaint e-mail (wecare@china-airlines.com) to protect the rights and interests of employees.

Team+

This internal company messaging software is offered to employees for free to facilitate two-way communication and instantly report to supervisors.

Labor Unions

At present, CAL cooperates with several labor unions and remains committed to maintaining open communication to negotiate reasonable agreements. We show the same respect to all unions and provide considerable resources in accordance with the law. In particular, the China Airlines Employees Union (CAEU) is a member of the Chinese Federation of Labor. There are six subordinate branches under CAEU which are classified based on the location of members and business:

  • 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.

There are five subordinate branches under Mandarin Airlines Employees Union (MDAEU):

  • Branch 1 : Divisions in Taipei Head Office, Taichung Branch, and Taichung Station
  • Branch 2 : Flight Operations Division and Operation Control Center
  • Branch 3 : Inflight Services Department
  • Branch 4 : Customer Services Division
  • Branch 5 : Engineering & Maintenance Division

In 2018, a total of 10,500 CAL employees parti- cipated in CAEU, accounting for 99.20% of the total workforce. A total of 856 Mandarin Airlines employees participated in the Mandarin Union, accounting for 92.84% of the total workforce. In 2002, CAL entered into a collective agreement with CAEU, the first such collective agreement in Taiwan's aviation industry. In January 2017, Mandarin Airlines also entered into a collective agreement with MDAEU, with the coverage rates of CAL and Mandarin Airlines being identical to the aforementioned participation rates. The agreement states clauses regarding union activities, labor-management meetings and dispute resolution, employment and termination, working hours, leave and vacations, salary, allow- ances and bonuses, personnel transfers, rewards, and disciplinary actions, employee benefits, training, and occupational safety and health. The purpose of the agreement is to protect and enhance the rights and interests of employees. CAL is now renewing the collective agreement with CAEU in 2018 to maintain stable labor-management relations.

CAL / Mandarin Airlines cooperates and communicates with CAEU / MDAEU through various channels as a partner and based on mutual dependence. In addition to regular meetings held between the Head Office and CAEU / MDAEU, divisions and corresponding branches of CAEU / MDAEU hold labor-management meetings to discuss the labor-management proposals. All resolutions will be handled once they are reported. In addition, meeting minutes taken at labor-management meetings held at the Head Office are published and made available to all employees on CAL's website / Mandarin Airlines 's website. CAL / Mandarin Airlines is dedicated to maintaining harmonious labor-management relations through open, efficient channels of communication.

Union Participation Rate of CAL and Mandarin Airlines

  • Note1: The number of CAL participants refers to the number of people being members of CAEU in the year(including employees in Taiwan); hourly-basis employees, interns, contracted employees, and executives higher than the rank of vice president are not included.
  • Note2: The number of Mandarin Airlines participants refers to the number of people being members of MDAEU in the year (including employees in Taiwan below the rank of vice president (inclusive) and expatriate executives in Mainland China); hourly-basis employees and contracted employees are not included.
  • Note3: Tigerair Taiwan does not have a labor union currently.

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. CAL conducted an employee satisfaction survey, "Hear the Truth", from April 10 to April 26, 2019. Conducted by an external consulting firm, the online anonymous questionnaire covered six major dimensions, including Organizational Health, Corporate Culture, Leadership, Job & Career, Working Environment, and Compensation and Benefits. This survey included 47 regular questions and 10 extra management related questions. The questionnaire was distributed to 10,367 regular employees in Taiwan and responded by 3,941 employees (response rate: 38.01%). The valid questionnaires totaled 3,732 (valid response rate: 36.00%).

We analyzed the results of the survey based on functions, including general administration staff, pilots, cabin crew, maintenance staff, and ground/customer service staff (including cargo sales, marketing & services and system operation control). Organizational Health showed the highest satisfaction overall, followed by Working Environment, Leadership, Compensation and Benefits, Job & Career, and Corporate Culture. The results were not significantly different from those of the previous survey. We also analyzed the results based on gender and found no significant difference between males and females. The overall satisfaction was lower than that of the previous survey. We speculated that this might be affected by the period of the survey after the strike of pilots.

The survey helped us to understand employees’ views and needs. It is an important reference for us to provide our employees with a stable work environment, increase their efficiency, and achieve a positive and sustainable company culture.

Results of Satisfaction Survey in Six Dimensions

Note: The full score is 10.

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 objectives 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 Level 1 managers, occupational health and safety employees, engineers, and medical personnel from the designated divi- sions / departments as well as representatives appointed by labor unions. A meeting is held once every three months to review and analyze occupational incidents. All incidents are followed up and reported to the management so that related health management solutions can besubsequently developed. In 2018, a total of 20 safety and health proposals were reviewed and discussed, 19 of which have been closed and one is still ongoing. Meeting minutes were published on the EIP website; a total of 107 occupational safety reports were compiled, 107 of which were improved and closed with an 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 of CAL Group in 2018

Occupational Safety and Health Committee 2016 2017 2018
Proportion of labor representatives in Taipei Branch (%) 36.36 36.36 36.36
Proportion of labor representatives in Taoyuan (%) 37.04 38.45 38.46
Proportion of labor representatives in Kaohsiung Branch (%) 38.00 38.00 37.50
Proportion of labor representatives in EMO (%) 34.78 34.78 34.78
Composition of Occupational Health and Safety Committee 2016 2017 2018
Proportion of Labor Representatives 33.33 33.33 33.33
Occupational Safety and Health Committee 2016 2017 2018
Proportion of Labor Representatives 38.46 38.46 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.


Occupational Hazards Statistics of CAL Group in 2018
  Disabling Injury Frequency Rate Disabling Injury Severity Rate Occupational Disease Rate Absence Rate Number of Incidents Resulting in Work-Related Fatalities
China Airlines Male 1.21 17 0.00 0.56% 0.00
Female 3.43 48 0.00 2.44% 0.00
All Employees 2.23 32 0.00 1.43% 0.00
Mandarin Airlines Male 2.15 4 0.00 0.34% 0.00
Female 4.29 155 0.00 0.74% 0.00
All Employees 6.44 159 0.00 0.55% 0.00
Tigerair Taiwan Male 9.06 103 0.00 0.08% 0.00
Female 13.79 159 0.00 0.13% 0.00
All Employees 11.75 135 0.00 0.11% 0.00
  • Note 1: Disabling injury frequency rate(FR)= (Number of annual disabling injuries ÷ Annual working hours) × 1,000,000
  • Note 2: Disabling injury severity rate(SR)=(Absence days of annual disabling injuries ÷ Annual working hours) × 1,000,000
  • Note 3: Absence rate=(Absence days ÷ Annual working days) × 100%
  • Note 4: Mandarin Airlines / Tigerair Taiwan only have one business location in Taiwan.