Micron's Taiwan Unions Threaten Strike over Bonus Dispute
Unions say more than 80% of members backed strike action after Micron declined to replace its annual bonus plan with profit sharing.
- On Tuesday, Micron Technology Inc. labor unions representing Taiwan employees announced plans to strike unless the U.S. memory-chip maker overhauls its bonus system and shares more profit with workers.
- Unions are demanding the current Incentive Pay Plan be replaced with a system allocating 15% of operating profit to bonuses distributed quarterly, arguing the IPP does not adequately reflect profitability.
- More than 80% of union members in Taoyuan and Taichung recently backed strike action, representing close to 10,000 of the 15,000 workers at facilities in these two cities.
- Micron responded that this year's performance-bonus payout will be the "highest in the company's history", adding it will continue dialogue with employees through existing channels while respecting legal processes.
- Authorities in Taipei are monitoring the dispute, warning that a work stoppage at the company's largest manufacturing base could disrupt the global supply chain for DRAM and high-bandwidth memory chips.
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The workers' unions of Micron Technology in Taiwan said, on Tuesday (1st), that they are moving towards a possible strike, unless the American memory chip manufacturer reformulates its bonus system and shares a larger share of its profits with employees. Exclusive material for subscribers. To have full access, access the link of the material and register.
Micron Taiwan to distribute record bonuses as union plans strike
Taipei, Sept. 1 (CNA) Micron Taiwan, a subsidiary of U.S. memory chip giant Micron Technology Inc., announced Tuesday that it will distribute record bonuses to its employees as the company's labor union plans a strike amid complaints employee bonuses have been lower than those offered by other memory chipmakers.
The conflict over performance bonuses in the semiconductor industry, sparked by Samsung Electronics and SK Hynix, has spread to Taiwan's Micron. Employees at Micron, which achieved record operating profits, are demanding compensation referencing the cases of Korean companies, while the union continues a sharp confrontation with management, threatening a strike if negotiations fail.
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