ABSTRACT The employees of Chunghwa Telecom, in their fighting against the amendment of Three Telecom Laws in 1995, set up a claim of Industrial Democracy and demanded there must be union¡¦s representatives in the company¡¦s Board of Directors, as has caused wide discussion in the society. On June 30th, 2000, Chunghwa Telecom Workers¡¦ Union¡]CTWU¡^successfully lobbied the Congress to pass ¡§The Amendment of the 35th Article of the State-run Enterprises Management Law¡¨, in which there is a mandate which says ¡§There must be at least one-fifth members of the company¡¦s BOD in a state-run enterprises nominated by the union¡¨. Such a drastic change enables laborers to share the management decision power, as has great influence on not only future labor and management mutual reactions as well as the conception of labor value, but also the management of the company. It¡¦s an Era of knowledgeable economy. In Taiwan, after the implementation of political democracy, calls for social democracy and economic democracy have become louder. From the 928 teachers demonstration parade, proposing to organize teachers union and asking rights to negotiate, till the Congress passed the Law of ¡§Association of Public Officials¡¨, which successfully got the Ministry of Civil Service under the Examination Yuan to initiate the first Association of Public Officials on January 15th in the year 2003. In the future, the Association of Public Officials can be gifted with the power to negotiate with the Government on related labor conditions of public officials. The relationship between public officials and the government has turned from extraordinary power relations into official duty relations pursuant to the Public Law. This tendency is very similar to that in an enterprise, which emphasizes the involvement of employees and advocates the labor-management relations to be partnership rather than subordination. This concept is sort of the Civil Society emphasized by European industrialized nations, as also complies with the Post-Materialism tide. Therefore, the researcher thinks that Taiwan has moved from political autocracy to democracy, and the society has stepped from door-shut into door-open. The economy has also adjusted from monopolization to liberalization. All the variation is the process of sharing democracy and also a proof of the improvement in Taiwan¡¦s special labor rights. This research is based upon the actual processes of the CTWU¡¦s struggling industrial democracy. By virtue of related reports, the researcher has got involved personally observing and discussing with specialists and union leaders and then made a systematic analysis and conclusion. The researcher intends to talk over the positive value practicability in which the state-run enterprises labor and management can obtain a realization of being in the same boat through the industrial democracy. According to this research, it is hoped that people can examine which way is right in managing a union so as to give suggestions to future non-profit organization¡¦s development and labor-management relationship. From this research, it is found that according to reports, the foundation of the industrial democracy of the European developed countries comes from the enthusiastic support of laborers and the strong power of labor movement and labor unions, as can thus turned the industrial democracy into political implementation. In Taiwan, not only there is no powerful labor movement and labor unions to support the industrial democracy, but also there is a conception that the industrial democracy is the Pandora¡¦s box of union¡¦s power conflict and union leaders jumping board. This phenomenon reveals the special political environment and the leaping democratic structure in Taiwan. Therefore, how is the system of industrial democracy carried out not only in state-run enterprises but also gradually in the private enterprises though the social, union and laborers supporting power are weak? The research suggests that labor side, management side and the government should continue mutual dialogues in an open-minded attitude and try to organize with the spirit of company¡¦s management to get a triple win result.