Micron union in Taiwan to launch one-day strike as bonus dispute escalates

A ​union representing Micron Technology workers in Taoyuan, Taiwan, said it would launch a one-day strike on October 22, escalating a dispute with the US memory chipmaker over employee bonuses ‌and profit-sharing. The action will coincide with a mediation session between Micron and a separate union at its Taichung operations, Micron's largest site in Taiwan.

The Taoyuan union said in a statement on Tuesday that it chose the date in the hope that Micron would present ‌a profit-sharing proposal acceptable to employees across Taiwan. The planned stoppage raises the stakes in a labour dispute at a ‌Micron manufacturing hub where the company produces DRAM and high-bandwidth memory chips used in AI servers. The immediate impact on production was unclear, but prolonged disruption could tighten already strained supplies of memory chips used in AI infrastructure.

Micron said it respected workers' legal rights and remained committed to engaging with the ⁠Taoyuan and ​Taichung unions in good faith to ⁠reach a solution acceptable to all parties. The Taoyuan union said it wanted a concrete offer on this year's one-off bonus and a transparent, predictable profit-sharing ⁠system for the future. It said the planned stoppage was a warning strike rather than a break in talks and that it would ​be ready to sign an agreement if Micron made an acceptable proposal.

Mediation between Micron and the Taoyuan union ⁠ended without an agreement in September. Taoyuan union members authorised strike action in early October. The Taichung union has yet to hold a vote on whether to strike.

Idaho-based ⁠Micron ​employs about 15,000 people in Taiwan and has invested more than T$1.6 trillion ($50 billion) on the island, the company says. Taiwanese President Lai Ching-te last week called for Micron and its workers to negotiate "sincerely".

The Taoyuan union said Micron should follow ⁠its Korean rivals in adopting a clearer profit-sharing formula. In May, Samsung Electronics averted a strike by its South Korean union over ⁠bonuses. Samsung agreed to set ⁠aside 10.5% of its chip division's operating profit for special bonuses, subject to profitability targets.

SK Hynix agreed last year to allocate 10% of annual operating profit to its profit-sharing bonus programme, ‌removing a cap on ‌payouts. ($1 = 32.4940 Taiwan dollars)