Industry-wide labor unions are relatively few in Taiwan; rather, unions exist on a per company basis instead. According to the Labor Union Law, as few as 30 employees are needed to establish a union at their company. Under the government's guidance, unions and union membership grew Taiwan's industrial development. By the 1980s, union membership started to slow and after martial law was lifted in 1987, the government stopped taking a leading in encouraging union development, opting to promote non-union structures to maintain positive labor-management relations.
Today, most companies rely on an employee handbook or a collective bargaining agreement to mediate any labor disputes. Heated labor disputes are infrequent. Being a democratic society, however, workers in Taiwan are aware of their right to organize and can mobilize to address unfair employment practices or incidents. Thus, companies are encouraged to maintain open lines of communication and clear guidelines regarding rights and regulations.