Micron union in Taiwan to launch strike as bonus dispute escalates

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Mediation between Micron and the Taoyuan union ended without an agreement in September.

TAIPEI – A union representing Micron Technology workers in Taoyuan, Taiwan, said it would launch a strike on Oct 20 to coincide with a mediation meeting between the US chipmaker and another collective representing workers at its Taichung operations, escalating a dispute over employee bonuses.

The strike raises the stakes in a labour dispute at one of Micron’s most important manufacturing hubs, where it produces DRAM and high-bandwidth memory (HBM) chips, key components in AI servers.

The Taoyuan union said the strike was intended to show solidarity with the Taichung union and to increase pressure on Micron to put forward a concrete profit-sharing proposal.

Micron employs about 15,000 people in Taiwan, with separate unions representing workers at its Taoyuan and Taichung operations. The company has said it has invested more than NT$1.6 trillion (S$62.9 billion) on the island.

Mediation between Micron and the Taoyuan union ended without an agreement in September. The union secured authorisation from its members to strike in early October.

The Taichung union, which represents workers at Micron’s largest operation in Taiwan, remains in negotiations with the company. It has yet to hold a vote on whether to strike.

The Taoyuan union did not specify how long the solidarity strike would last, saying it would release further details on Oct 20.

“Through our actions, we will make our dissatisfaction with the current system heard and demonstrate our determination to establish a fair profit-sharing system,” the Taoyuan union said in a statement on Oct 19.

Taiwanese President Lai Ching-te called last week for Micron and its workers to negotiate “sincerely”.

In a statement, Micron said the company was “committed to constructive engagement with the Taoyuan and Taichung unions to reach a solution that works for all parties”.

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

Micron, which makes around 50-60% of its chips in Taiwan, said last month that it would give the equivalent of up to 68 months of pay to staff but the one-off payment was rejected by workers. REUTERS, AFP