This article examines changing patterns of industrial relations (IR) in Taiwan. Although trade unions have become more autonomous since the lifting of martial law in the mid‐1980s, trends such as the privatization of state‐owned enterprises, industrial restructuring, flexible employment practices, and importation of foreign workers hinder union development. The millennium may represent a turning point for workers and their organizations because the Democratic Progressive Party (DPP) replaced the Kuomintang (KMT) as the ruling party. This may further union independence and power because the DPP tends to be a more pro‐labor party. However, balancing the interests of workers and employers will still be a challenge for the DPP, particularly given employer opposition to many of the DPP's labor policies.
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