Micron workers in Taiwan reject profit-sharing proposal
Workers at a Micron Technology plant in Taiwan have rejected the company's profit-sharing proposal, with a union warning of potential further action amid soaring chip demand driven by AI.
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 Friday, 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 to 60 per cent 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 Wednesday, but the Taoyuan union is still locked in negotiations with management and held a small strike on Thursday to press their point. Around 70 per cent of the Taoyuan union's more than 2,300 members voted to reject the company's profit-sharing proposal presented to them on Thursday, the union said in a statement.
“During negotiations with Micron on October 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 a request for comment.
The US company's share price has ballooned more than 300 per cent over the past year, as it reports record earnings fuelled by AI demand. Micron Taiwan chairman Lu Donghui said on Thursday 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 per cent of operating profit to its semiconductor employees. The Taoyuan union said the next round of talks with Micron will be on 27 October after Friday's meeting was postponed due to a typhoon. “The fight is not over, and we have not given up,” the union said.