Salary and incentives

CSRC provides employees with comprehensive salary benefits. It conducts regular surveys of external salary markets each year, taking into account individual expertise in performance evaluation to calculate competitive salaries in the market. This ensures that colleagues' salary levels maintain a certain degree of advantage over external markets. For key positions we also design salary packages that are better than market conditions and we cultivate excellent talent to serve as an aid to the continued growth of CSRC’s operations.

In addition to the fixed salary, CSRC also provides qualified peer performance bonuses and rewards to effectively link the Company’s operating results, the performance of each factory, and individual performance. This is done to improve team morale, increase productivity in the organization, and ensure that the overall rewards are more competitive to attract outstanding personnel to join.

CSRC attaches great importance to gender equality and equal pay for equal work. The salary payment basis and basic starting salary do not differ based on gender. Remuneration is mainly based on business performance, peer salary levels, job evaluation and the Company's future operating needs and other related factors. Due to the industry specificity in the gender composition of talent in the industrial chain of CSRC, most of the professional and technical workers in the plant are currently men, while women mainly hold administrative/support type positions. According to market standards, there are different levels of positions for different types of positions. This difference has resulted in the pay gap between men and women in each plant. In order to manage the differences in the salary structure of employees in each region, CSRC's Human Resources Department regularly investigates internal and external market salaries every year to ensure the appropriateness and rationality of salary disbursement.

Male-to-female average salary ratio by job level for CSRC in 2023 (Male: Female)

Performance Appraisal

CSRC’s annual performance appraisal work mainly targets colleagues who are currently under appraisal and who have completed three months of service. Colleagues who have been employed for less than three months will be evaluated based on the standards of newcomers, considering that organizational adaptation and individual performance are still under observation. In 2023, 100% of CSRC Group employees successfully completed the annual performance assessment.

We also collected feedback from managers and colleagues on the current performance management system and initiated adjustments by the end of 2023. This includes promoting clearer and more consistent evaluation criteria and conducting a second performance calibration meeting at the Linyuan Advanced Plant, expanding the scope to include frontline supervisors. Through the conducting of assessment courses, we enable evaluating managers to understand the importance of performance communication and writing evaluations, as well as the significant impact of assessments on colleagues' futures, to establish a fairer and equitable performance management system and process.

In addition, we introduced an online performance management platform starting from 2019 to enable colleagues to respond to performance more conveniently and with greater immediacy. In addition to being able to fully record the performance achievements and evaluation history of colleagues over the years, it can also connect the goals and results between supervisors and colleagues.

Completion of regular performance assessments by the Group and each region over the past three years

Insurance system of each country

Proportions of employees covered by medical insurance in each region of CSRC in the past three years

Retirement system

CSRC assists employees in proper pre-retirement planning, and each region has formulated relevant retirement systems in accordance with laws and regulations, as shown in the table below.

Other welfare measures

Number of benefit usage instances in 2023

◆ Employee stock ownership trust plan

CSRC has implemented an employee stock trust plan since 2019. Colleagues can choose to allocate a certain amount from their monthly salary, with the Company matching the same amount as a reward. Through regular investment in Company stock, this plan motivates employees to progress together with the Company, linking employee benefits to shareholder interests, thus creating a win-win-win situation for the Company, employees, and shareholders. In addition to allocating a certain amount from their monthly salaries, starting from November 2021, the "Retiring Employees' Additional Contribution Plan" and "Single Withdrawal Increased Amount Sharing Plan" have been implemented. Colleagues may apply in May and November each year, enhancing the Company's overall welfare and early retirement savings accumulation.

◆ Emergency relief plan

During employment, colleagues may apply to resign from the employee stock trust by submitting a request to the employee stock trust representative in case of significant emergencies or other unavoidable major reasons. Upon approval by the Employee Stock Trust Committee, the colleague's trust account assets will be refunded.

◆ Childcare

CSRC adheres to a belief in gender equality. Female employees enjoy pregnancy leave without pay, prenatal check-up leave, and maternity leave. Meanwhile, male employees are entitled to paternity leave when their spouse gives birth. For employees with infant-care needs, we will handle the work of employees without pay for childcare leave in accordance with the “Gender Work Equality Act” and the “Implementation Measures for Infant Care Leave without Pay”. Furthermore, after the expiration of the employee’s period of leave without pay, we will arrange for a return to the original unit and position, and actively assist the employee to reintegrate into the workplace. Parental leave does not differ based on gender, position, or work area. Female employees in the Taiwan portion of the Greater China region are entitled to two breastfeeding breaks per day (each for half an hour), while male and female colleagues can apply for parental leave without pay. In the China region, male colleagues are entitled to 10 days of paid paternity leave and female colleagues are entitled to 158 days of paid maternity leave, as per Chinese government regulations. In India, employees are entitled to 26 weeks of maternity leave as per government regulations. In the United States, employees are entitled to up to 12 weeks of parental leave.

CSRC Group’s parental leave application and reinstatement retention statistics

Our human rights policy regulates diversity, tolerance, and equal job opportunities, and provides a safe and healthy working environment, in compliance with local regulations in different regions, such as the Gender Work Equality Act in Taiwan, the Special Provisions on Labor Protection for Female Employees in Mainland China, and the “PUMP for Nursing Mothers Act” in the United States. We have formulated the “Administrative Measures for Breastfeeding Rooms”, extending compassion to female colleagues who must balance the demands of family and workplace. There are breastfeeding rooms or rest rooms for pregnant women in various locations of the Company provided for use by colleagues who need to engage in breastfeeding, thereby fully protecting maternal employment and family care. In the India region, facilities such as daycare centers are provided in accordance with the Maternity Act.

To ensure our colleagues work with peace of mind and to promote children's welfare, CSRC has signed a preferential childcare contract with kindergartens accredited by the Kaohsiung City social and governmental authorities. This initiative aims to leverage the Company's support to alleviate the childcare burden for laborers.

◆ Other benefits or systems

Beyond providing a caring and comfortable working environment, CSRC cares about the lives of our employees as we adhere to a "people-oriented" ideal. With the support and encouragement of the Company, we plan various subsidies or welfare measures for festivals, life events, health insurance, and learning, so as to achieve a balanced life that promotes work, study, and leisure.

Employee cafeteria	CSRC attaches great importance to employee food hygiene issues. There is a staff restaurant that emphasizes the use of seasonal ingredients, cooking with less oil and less salt to provide employees with healthy meals.
Fitness plaza	The Company provides a fitness room (with treadmill, various fitness equipment, and weight training equipment) and a sports area (with yoga space, basketball shooting machine, pool table) for employees' convenience.
Relief Massage Area	The "Relief Massage Room" sympathizes with colleagues' hard work and provides free professional massage masters to help employees relieve stress.
Employee Rest Area	A special floor is set up for employees to communicate and relax. There are many movable tables and chairs and small meeting rooms in the comfortably decorated space, allowing employees to choose to talk openly or privately. There is also a reading area, games area, VR area, beverage area, and even slides and ball pools for children to play. Having these spaces not only allows colleagues to maintain their best condition during work, but also allows family members to use them during vacation time, enhancing closeness between the Company and the family

Volunteer system	CSRC provides employees with two days of leave per year to encourage participation in social welfare services and showing enthusiasm for service outside of work. By doing so, we aspire to implement the spirit of service and of devotion to giving back to society. In 2023, employees took a total of 193 days of volunteer leave.
Study grants	In addition to providing scholarships and stipends for the children of employees, it also provides remedial assistance for employees, and the company pays for the expenses when employees are selected for training in external institutions.
Festive gifts	We provide gift vouchers, birthday gift vouchers, and New Year gift vouchers including for the Spring Festival, Dragon Boat Festival, and Mid-Autumn Festival.
Wedding and funeral subsidies	CSRC cares for all employees. Whenever there is marriage, childbirth or death of relatives, the Company will give congratulatory gifts or condolence stipends to accompany and support colleagues through all important stages of their lives.
Flexible working hours	CSRC has a flexible commuting system for non-scheduled employees where staff members choose times to go to and get off from work every quarter.
Annual gatherings	The Linyuan Plant in Greater China holds Spring Banquets and corporate yearend parties; the US region hosts holiday parties, crawfish boils, and other activities every year to foster employee relationships.

Fitness plaza

Employee rest area

Employee communication channels

CSRC values positive employee relations. It actively establishes diverse two-way communication channels in accordance with local labor-related implementation measures at each operational location. CSRC convenes labor-management meetings at least once every quarter in various regions, where both labor and management send representatives to discuss topics including but not limited to salaries and benefits, working conditions, employee assistance programs (EAPs), and vacation planning. In addition, if employees have any complaints, they can send an email to the chairman of the union. The labor union will understand and communicate the content of the complaint, and reach a consensus with the company through two-way discussions at the meeting to establish a harmonious working environment for labor and management.

The Linyuan Advanced Plant in Greater China registered a trade union in 2019, with 168 employees participating in 2023 and accounting for 70% of the plant's workforce. According to the “Articles of the Kaohsiung Trade Union of Linyuan Advanced Materials Technology Co., Ltd.”, the union will assist members in the following tasks:

Although plants in Greater China have not established labor unions, they have implemented employee suggestion boxes to solicit opinions or suggestions from employees. The suggestion box key is kept by the plant manager. Additionally, feedback from employees is summarized monthly, and every comment and suggestion is handled promptly with a response. The India region CCIPL Plant has nine union members, constituting 5% of the total workforce; the CCET Plant does not have a labor union. Both US plants have established unions, with a total of 104 unionized employees and accounting for 46% of the total US workforce.

CSRC is committed to providing a comfortable working environment while encouraging colleagues to balance family life, physical and mental health, and work enthusiasm. Furthermore, it actively maintains a good relationship between labor and management, and provides multiple internal communication channels. In addition to regular labor–management meetings, labor union communication and coordination, Company internal website message announcements, electronic newsletters, and other ad hoc meetings, the Company began holding regular staff forums starting in 2021. These forums gather colleagues' thoughts and suggestions, and provide periodic public responses to employee feedback. We also continued our collaboration with Hsinchu Lifeline on the Employee Assistance Program (EAP), utilizing services from professional psychological counseling agencies to strengthen the types of employee communication channels and ensure confidentiality throughout the entire process, while respecting employee privacy.

In 2023, there was a total of one labor dispute case between CSRC Group and its employees. After full communication and consultation with employees, all differences have been put aside and resolved. The Company also reviewed internal regulations related to the dispute, adjusted operational procedures based on the actual dispute situation, and aimed to prevent similar cases from arising. If there are any labor rights or welfare suggestions or complaints, all employees of CSRC Group can express their opinions through the employee communication mailbox (csrc_hr@csrcgroup.com) or the suggestion boxes provided in the plant and office.

Employee satisfaction survey

CSRC values employee opinions. In addition to regular smooth labor-management meetings, we also conduct employee opinion surveys to understand employees’ recognition and engagement with the Company. A total of 379 questionnaires were collected, and we continue to improve Company practices based on employees' feedback on issues. We review individual employee needs, striving to meet the expectations of the majority of employees while also responding to the needs of individual employees. We continue to provide platforms to realize the value of employees, establish sound mechanisms, and provide them with development directions. A people-oriented approach is the foundation of the Company's development. We continuously improve various Company measures to enhance employee recognition and retention rates.

In addition to the Group-wide employee opinion survey, the Maanshan Plant and the Anshan Plant have also arranged to conduct employee satisfaction surveys. The survey results showed average approval rates of 85% and 95% for the Company. Based on statistical analysis of the survey, the Maanshan Plant will conduct diversified activities to continuously enhance employee cohesion. Employee interviews are conducted to collect opinions and suggestions, provide feedback to supervisors, and discuss improvement plans together. The Anshan Plant has proposed and implemented improvement plans for less satisfactory indicators, including improving performance evaluation communication, enhancing the work environment, and promoting positive responses from supervisors to employees. Employee satisfaction surveys were also conducted in the India region, with 220 questionnaires distributed and 156 questionnaires collected, achieving a response rate of 71% and an average satisfaction rate of 87%. The US region did not plan an employee satisfaction survey this year, but there were no labor disputes, indicating that employees still communicate through other channels.

Employee satisfaction survey dimensions