Government plan to consolidate financial sector runs into trouble

This article was written by Yu-jing Wu and published by the Taiwan Journal on September 30, 2005. It reports that the bidding process for the government's controlling 41-percent stake in the Taiwan Business Bank recently ended in failure, because there was a lack of consensus on issues between the bank's labor union and its potential buyers.

The government's attempt to sell its share in the Taiwan Business Bank was part of Taiwan's second-stage financial reform program, which aimed to consolidate the nation's overcrowded banking sector. It was hoped that by the end of 2005, the number of banks in which the government holds controlling shares could be halved to six.

However, members of the Taiwan Business Bank Industrial Union were against the government's attempt to sell its controlling share in the bank. They worried that the sale would result in job losses. As union members presented new demands concerning retirement packages and job-security guarantees, the highest of the three bidders decided to give up the idea of adjusting its bid and the whole bidding process failed.