In recent years, due to the increase of labor cost, deterioration of investment environment and unstable political situation, the unemployment rate grow rapidly and economy deteriorates. The factors causing the above problems are complicated. However, the current labor laws and regulations lack for flexibility and efficiency is a very important factor. In Taiwan, the "individual labor law" is over developed, but the "collective labor law" is lack for efficiency. The Labor Standards Law has been the most important "individual labor law" in Taiwan. Although the Labor Standards Law provides a basic protection of working conditions for workers, it also creates a problem of inflexibility on employers' management. Under this situation, labor cost for most enterprises has inevitably increased. In order to maintain certain profit, employers have to increase the price of their products. The competition capacity of these enterprises will decline ultimately. When the enterprises lose their competition capacity in the international market, they will find a way out. If they are unable to adjust their labor cost due to the regulations of current labor law, they will try to find a better investment environment. In recent years, many enterprises have terminated their business in Taiwan, and have moved their business to China or southeastern Asian countries. Once these enterprises conclude their business, workers used to work for them have to face unemployment. It will also cause negative impact on economy. In order to enable employers adjust their labor cost through adopting flexible working conditions, it is necessary to loosen the regulations of the Labor Standards Law. When the working conditions are no longer strictly regulated by the Labor Standards Law, it is important for employers and employees to bargain the working conditions collectively. Without the presence of practical unions, the collective bargaining system can not be effectively functioned. Moreover, it is impossible that agreements can be reached through collective bargaining each time. The system to solve labor dispute is thus very important. It is also important to regulate atypical employment, strengthen occupational training, urge industry upgrading, raise the efficiency of core employees, reduce supportive labor, and abolish age discrimination.