Kuai Kuai workers protest land sale, demand compensation

Workers at Taiwanese snack maker Kuai Kuai Co. protested outside the Presidential Office on Monday, demanding compensation after the company sold the site of its factory in Taoyuan’s Zhongli District and announced plans to relocate operations to Hsinchu.

The Kuai Kuai Zhongli factory union said the company sold the land for NT$5.672 billion (US$178.6 million) in late July and accused San-Ti Group, which controls the snack maker, of failing to adequately safeguard the interests of long-serving workers.

Among the dozens of people taking part in the Taipei protest was union chairman Liu Neng-hung (劉能宏), who said the Zhongli factory had operated since 1968 and that more than one-third of its employees had worked there for over 30 years.

Workers at Taiwanese snack maker Kuai Kuai Co. hold placards while protesting outside the Presidential Office on Monday.

Photo: CNA

"Now that the group has made substantial profits from selling the land, it should give priority to compensating long-serving, low-paid workers," Liu said in a statement issued after the protest.

The union said employees only learned about the land sale through news reports and were not formally informed until Sept. 1 of plans to relocate the factory to Hsinchu -- a move the Ministry of Labor (MOL) said was not expected for another two years.

Taoyuan Confederation of Trade Unions Secretary- General Tracy Sun (孫語謙) said the distance between Zhongli and Hsinchu is more than 39 kilometers, making the proposed relocation impractical for many employees.

"That is already too far. Most of our employees would not be able to accommodate such a transfer," Sun said.

The union said nearly 20 workers had resigned since the sale and accused the company of hoping employees would leave voluntarily so it could avoid paying severance, according to the statement.

Sun also noted that Kuai Kuai workers "might not be the only ones" affected by the expansion of Taiwan’s AI industry.

She argued that rising industrial land prices could make it more attractive for companies to sell factory sites than continue production as AI and semiconductor companies seek more space to expand.

Sun also said that San-Ti Group is primarily involved in land and commercial development and suggested it may have been more interested in the value of Kuai Kuai’s land when it acquired the company than in "operating the food manufacturer and looking after its workers" over the long term.

The union is seeking compensation above statutory severance levels and has said it could hold a strike vote if no satisfactory agreement is reached.

Responding to Monday’s protest, the MOL said it had asked the company to engage in "proactive and transparent" dialogue with workers and the union at a labor- management mediation meeting scheduled for Wednesday.

"The rights of grassroots workers who have worked for the company for many years cannot be ignored, nor can workers’ rights be allowed to suffer because of adjustments to business operations," the ministry said.

The MOL noted that any factory relocation or reassignment of workers must comply with the Labor Standards Act and other labor laws.

The ministry said the relocation could significantly affect workers’ families and daily lives, and urged the company to consult workers on issues including longer or more difficult commutes and possible changes to working conditions.

The ministry also called on Kuai Kuai, which it described as a household name, to "demonstrate corporate social responsibility" and properly address the union’s demands for compensation or other concrete protections.

CNA has reached out to Kuai Kuai for comment but had received no response as of press time.

Kuai Kuai is one of Taiwan’s best-known snack brands, particularly for its eponymous puffed corn snacks.

Its green-packaged butter-coconut-flavored Kuai Kuai is also a familiar sight in Taiwan’s tech sector, where packets are often placed beside equipment in the belief they will help the equipment "behave" and operate smoothly -- a play on the meaning of "Kuai Kuai" in Mandarin.