Search News
For the Media
For media inquiries, call CWA Communications at 202-434-1168 or email comms@cwa-union.org. To read about CWA Members, Leadership or Industries, visit our About page.
Chunghwa Delegation Meets Regulators, Reporters
With support from CWA and the AFL-CIO, a delegation of Taiwanese union officials and a key Taiwanese legislator has been meeting with regulators, analysts and reporters to reinforce their charge that the proposed U.S. offering for shares of Chunghwa Telecom Co., Ltd., is illegal.
Chunghwa is Taiwan's government-owned telecommunications company. The executive branch currently is seeking to privatize the company by proposing to sell shares in the U.S. through American Depositary Shares, the vehicle used to buy or sell foreign-owned stocks. Privatization could result in mass layoffs and jeopardize pensions, this union says.
The delegation wants the Securities & Exchange Commission and other regulators to halt the pending sell until a constitutional challenge brought by 100 members of the Taiwan Legislative Yuan is resolved by Taiwan's judiciary.
In a teleconference, Mr. Tsai Chin-lung, a legislator of the Taiwan Legislative Yuan, told reporters and analysts that "as a state-owned company, Chunghwa Telecom must be monitored by the Legislative Yuan." Tsai also noted that Taiwanese regulators have determined that both an earlier sale of shares to the private Fubon group, as well as this offering are not in compliance with Taiwanese law. The Legislative Yuan passed two resolutions in May calling for a halt to the public issuance of Chunghwa shares, then filed for the constitutional review in June.
President Chang Hsu-chung of the Chunghwa Telecom Workers Union stressed the illegality of the executive branch action in another area, noting that the company is required to ensure "the original working rights and working conditions of its workers" before proceeding to any sale, an action the company has refused to take.
Stephen Diamond, a law professor at Santa Clara University stressed that, "U.S. investors are being asked to wade into a full blown constitutional crisis...where they have little understanding of the domestic legal and political complexities."
In New York, the delegation met with the staff of State Attorney General Elliot Spitzer and other state regulators to reinforce the serious problems in the proposed offering. The group also traveled to Washington for meetings at CWA headquarters.
CWA Executive Vice President Larry Cohen said it was critical - both to Taiwanese democracy and U.S. investors - that the Taiwanese judiciary "determine the constitutionality of this issue before any further action is taken by financial interests in the United States to promote the offering of shares."
Chunghwa is Taiwan's government-owned telecommunications company. The executive branch currently is seeking to privatize the company by proposing to sell shares in the U.S. through American Depositary Shares, the vehicle used to buy or sell foreign-owned stocks. Privatization could result in mass layoffs and jeopardize pensions, this union says.
The delegation wants the Securities & Exchange Commission and other regulators to halt the pending sell until a constitutional challenge brought by 100 members of the Taiwan Legislative Yuan is resolved by Taiwan's judiciary.
In a teleconference, Mr. Tsai Chin-lung, a legislator of the Taiwan Legislative Yuan, told reporters and analysts that "as a state-owned company, Chunghwa Telecom must be monitored by the Legislative Yuan." Tsai also noted that Taiwanese regulators have determined that both an earlier sale of shares to the private Fubon group, as well as this offering are not in compliance with Taiwanese law. The Legislative Yuan passed two resolutions in May calling for a halt to the public issuance of Chunghwa shares, then filed for the constitutional review in June.
President Chang Hsu-chung of the Chunghwa Telecom Workers Union stressed the illegality of the executive branch action in another area, noting that the company is required to ensure "the original working rights and working conditions of its workers" before proceeding to any sale, an action the company has refused to take.
Stephen Diamond, a law professor at Santa Clara University stressed that, "U.S. investors are being asked to wade into a full blown constitutional crisis...where they have little understanding of the domestic legal and political complexities."
In New York, the delegation met with the staff of State Attorney General Elliot Spitzer and other state regulators to reinforce the serious problems in the proposed offering. The group also traveled to Washington for meetings at CWA headquarters.
CWA Executive Vice President Larry Cohen said it was critical - both to Taiwanese democracy and U.S. investors - that the Taiwanese judiciary "determine the constitutionality of this issue before any further action is taken by financial interests in the United States to promote the offering of shares."