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.
Taiwanese Legislator, Chunghwa Telecom Union President Cite Illegality of Pending U.S. Sale of Chung
New York – The current U.S. offering for shares of Chunghwa Telecom Co., Ltd., Taiwan's government-owned telecommunications company, is an illegal effort by Taiwan's executive branch to privatize the company, a Taiwanese legislator and the president of the Chunghwa Telecom Workers Union told reporters and analysts in a teleconference today.
The Communications Workers of America and the AFL-CIO have joined with the Taiwanese Chunghwa Telecom Workers Union in calling on the Securities & Exchange Commission and state regulators to withhold approval of an offering of shares of Chunghwa Telecom.
Mr. Tsai Chin-lung, a legislator of the Taiwan Legislative Yuan, told reporters and analysts that a group of 100 legislators have signed a constitutional challenge, calling on the Taiwan Judiciary to rule on the actions by the government's executive branch to sell shares in the company. "As a state-owned company, Chunghwa Telecom must be monitored by the Legislative Yuan," Tsai said. Taiwanese regulators have determined that both an earlier sale of shares to the private Fubon group and this offering are not in compliance with Taiwanese law, he said, noting that the Legislative Yuan passed two resolutions on May 27, 2005, calling for a halt to the public issuance of Chunghwa shares.
President Chang Hsu-chung also 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. This represents another roadblock to issuance of shares.
Stephen Diamond, a law professor at Santa Clara University and a consultant to the AFL-CIO on corporate governance and investment issues, 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."
"The disclosure currently available to investors is woefully inadequate in describing the uncertainty that clouds the title" of these securities, he said.
The delegation will meet with the New York attorney general staff, regulators and others during their U.S. visit to raise concerns about the serious problems in the proposed offering.
CWA Executive Vice President Larry Cohen said it was critical – both to Taiwanese democracy and to 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." Cohen is president of the 2.5 million member Telecom sector of Union Network International.
The Taiwanese Chunghwa Telecom Workers Union represents nearly 100 percent of the company's 28,000 employees. CWA, with 700,000 members in telecom, information technology, media, and other sectors, has been working with Taiwanese unions for more than a decade.
The Communications Workers of America and the AFL-CIO have joined with the Taiwanese Chunghwa Telecom Workers Union in calling on the Securities & Exchange Commission and state regulators to withhold approval of an offering of shares of Chunghwa Telecom.
Mr. Tsai Chin-lung, a legislator of the Taiwan Legislative Yuan, told reporters and analysts that a group of 100 legislators have signed a constitutional challenge, calling on the Taiwan Judiciary to rule on the actions by the government's executive branch to sell shares in the company. "As a state-owned company, Chunghwa Telecom must be monitored by the Legislative Yuan," Tsai said. Taiwanese regulators have determined that both an earlier sale of shares to the private Fubon group and this offering are not in compliance with Taiwanese law, he said, noting that the Legislative Yuan passed two resolutions on May 27, 2005, calling for a halt to the public issuance of Chunghwa shares.
President Chang Hsu-chung also 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. This represents another roadblock to issuance of shares.
Stephen Diamond, a law professor at Santa Clara University and a consultant to the AFL-CIO on corporate governance and investment issues, 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."
"The disclosure currently available to investors is woefully inadequate in describing the uncertainty that clouds the title" of these securities, he said.
The delegation will meet with the New York attorney general staff, regulators and others during their U.S. visit to raise concerns about the serious problems in the proposed offering.
CWA Executive Vice President Larry Cohen said it was critical – both to Taiwanese democracy and to 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." Cohen is president of the 2.5 million member Telecom sector of Union Network International.
The Taiwanese Chunghwa Telecom Workers Union represents nearly 100 percent of the company's 28,000 employees. CWA, with 700,000 members in telecom, information technology, media, and other sectors, has been working with Taiwanese unions for more than a decade.