Taiwan union says Micron workers reject bonus proposal

TAIPEI - Hundreds of workers at a Micron Technology plant in Taiwan have rejected the US memory chip giant’s proposal for a new profit-sharing system, the union representing the employees said on Oct 23, declaring the “struggle is far from over”.

Exploding global demand for chips used in AI data centres has sent revenues soaring for firms like Micron, but as their earnings skyrocket, workers are calling for a bigger cut of profits.

Micron, which makes around 50-60% of its chips in Taiwan, has spent weeks in talks over remuneration with two labour unions representing 12,000 of 15,000 workers at its Taoyuan and Taichung plants.

The company and the union representing workers at its larger plant in Taichung struck an agreement on Oct 21, but the Taoyuan union is still locked in negotiations with management andheld a small strike on Oct 22 to press their point.

Around 70% of the Taoyuan union’s more than 2,300 members voted to reject the company’s profit-sharing proposal presented to them on Oct 22, the union said in a statement.

“During negotiations with Micron on Oct 21, the company failed to respond to any of the union’s demands,” the union said, warning of potential “further collective action to secure a fairer profit-sharing system”.

“In addition, we have continued to receive reports of dissatisfaction with the company’s proposal from rank-and-file Micron employees in Taichung,” it added.

Micron did not immediately respond to AFP’s request for comment.

The US company’s share price has ballooned more than 300% over the past year, as it reports record earnings fuelled by AI demand.

Micron Taiwan chairman Lu Donghui said on Oct 22 that the company had agreed to introduce a quarterly profit-sharing bonus system starting in fiscal 2027 for its global workforce, in addition to the existing annual bonus.

For workers in Taiwan, the company will increase pension contribution and shift allowances, among other measures, Lu said.

The Micron dispute follows recent labour disagreements in South Korea, where Samsung Electronics averted a strike by agreeing to a deal to distribute bonuses equivalent to 10.5% of operating profit to its semiconductor employees.

The Taoyuan union said the next round of talks with Micron will be on Oct 27 after the Oct 23 meeting was postponed due to a typhoon.

“The fight is not over, and we have not given up,” the union said.

Both unions had been seeking a one-off bonus of 83 months’ salary as well as a permanent system that allocates 15% of the company’s operating profits to worker bonuses, distributed quarterly rather than annually.

Source: The Straits Times https://www.straitstimes.com/asia/east-asia/taiwan-union-says-micron-workers-reject-bonus-proposal