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Micron Taiwan Workers Strike Over Profit Share
22 Oct
Summary
- Union workers in Taiwan's Micron plant initiated a strike on Thursday.
- Employees are demanding a larger share of company profits due to soaring revenues.
- A Taichung union and Micron reached a labor agreement, but Taoyuan union objects.
A strike commenced at a Micron Technology plant in Taiwan on Thursday, initiated by a union representing workers who failed to secure an agreement on profit-sharing with the US chip manufacturer. The action involves a segment of employees at the Taoyuan facility, near Taipei, who are demanding a greater allocation of the company's increased profits, fueled by high global demand for AI chips.
This dispute follows recent labor negotiations in South Korea involving Samsung Electronics, which successfully averted a strike by agreeing to distribute bonuses equivalent to 10.5 percent of operating profit. The Taoyuan union chairman, Jerry Lin, expressed disappointment that a consensus was not reached during prior negotiations, emphasizing that talks with Micron would persist.
Micron Taiwan's chairman acknowledged the strike as regrettable but affirmed the company's commitment to ongoing communication. Notably, a larger facility in Taichung had reached a labor-management agreement with Micron, which included a quarterly profit-sharing bonus system and increased pension contributions.
However, the Taoyuan union has condemned this agreement, asserting that their distinct views were not properly considered in the Taichung negotiations. Union officials warned that further strike action could occur if Micron fails to present a sincere proposal. The workers are reportedly seeking a one-off bonus of 83 months' salary and a permanent system allocating 15 percent of operating profits to quarterly bonuses.
