The Guai Guai snack factory in Zhongli could halt output after 94% of employees voted to strike following the company’s decision to relocate production to Hsinchu. Management has offered a 5% pay rise and the option to relocate or commute, while workers say the increase merely mirrors a minimum wage change. Staff are demanding severance for those who won’t move, written pay guarantees, and a NT$10,000 (US$315) monthly raise for staying employees, plus a share of the NT$5.6 billion windfall from the sale of the Zhongli site. Negotiations continue under the watch of the Taoyuan Department of Labor.
Guai Guai Snack Factory Faces Possible Shutdown After 94% Strike Vote Over Relocation and Payouts
Credit: Future
Taiwan’s Guai Guai snack factory — maker of the island’s well-known creamy coconut treat often used as a good-luck talisman in semiconductor plants — could halt production after 94% of workers voted in favor of strike action. The dispute centers on a planned factory relocation, a modest pay offer, and demands that employees share in the proceeds from the sale of the company’s longstanding Zhongli site.
What Happened
The Guai Guai Company plant in Zhongli has operated since 1968, and more than a third of its employees have worked there for 30 years or more. On 1 September the company announced it would move production to a new factory in Hsinchu, around a 45-minute drive from Zhongli. Management says workers may keep their jobs if they agree to relocate or commute, and it has offered a 5% pay increase.
Why Workers Are Angry
The union and employees say the 5% raise simply matches a recent change to Taiwan’s minimum wage and does not represent a real improvement. Workers are also upset that the company will not share any of the proceeds from the sale of the Zhongli site — reportedly purchased by Advanced Semiconductor Engineering Inc. (ASE) for NT$5.6 billion (US$176.1 million).
Union leaders are seeking written guarantees on severance and raises, a share of what they call an "AI windfall" tied to the sale, and special consideration for long-serving staff. Specifically, they want severance packages for employees who will not relocate, written assurances on pay increases, and a NT$10,000 (US$315) monthly uplift for those who remain.
Strike Vote and Negotiations
A decisive 94% of the Guai Guai workforce voted to authorize strike action. Negotiations between management and the union are ongoing, with both sides expected to continue talks this week. There has been no final resolution reported yet.
Government Involvement and Potential Impact
The Taoyuan Department of Labor is monitoring the dispute and has said the company’s offer should respect employees’ years of service and protect their livelihoods; the department could step in if talks fail. While Guai Guai products are not critical to semiconductor manufacturing, the cultural role of the snack in Taiwan’s tech ecosystem has made this dispute notable. A prolonged stoppage would affect local production and could reverberate through supply chains that depend on snacks for factory morale and ritual use.
Timeline of Key Events:
- Company announces relocation of Zhongli plant to Hsinchu on 1 September.
- Company offers a 5% pay increase and the option to relocate or commute.
- ASE purchases Zhongli site for NT$5.6 billion (US$176.1 million).
- Workers vote 94% in favor of strike; union presses for severance, pay guarantees, and a NT$10,000 monthly uplift for staying staff.
We will update this report as negotiations progress and if the Taoyuan Department of Labor takes action.
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