Micron Taiwan union seeks profit-sharing as 80% back strike vote
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Micron Taiwan workers increasingly support a strike over bonus pay, with a preliminary survey showing 80% backing the move. The labor union demands replacing the current bonus system with a profit-sharing scheme similar to SK hynix's. Formal mediation talks are expected to begin by mid-September, a mandatory step before an official strike vote under Taiwan law.
Key Facts
- A preliminary survey showed 80% of Micron Taiwan workers support a strike over bonus pay.
- The union demands replacing the current bonus system with a profit-sharing scheme similar to SK hynix's.
- Samsung pays 10.5% of profits as bonuses, while SK hynix pays 10%.
- Micron's last earnings report showed revenue of $41.46 billion and net income of $28.24 billion.
- Formal mediation talks are expected to begin by mid-September, a mandatory step before an official strike vote under Taiwan law.
Labor Demands
Micron Taiwan workers increasingly support a strike over bonus pay, with a preliminary survey showing 80% backing the move. The labor union demands replacing the current bonus system with a profit-sharing scheme similar to what SK hynix employees receive. Union representatives say competitors offer far higher profit-based bonuses, with Samsung paying out 10.5% of profits and SK hynix 10%. Formal mediation talks are expected to begin by mid-September at the latest, a mandatory requirement before an official strike vote can be held under Taiwan law.
Financial Context
Micron, alongside Samsung and SK hynix, has been generating significant revenue because of the AI-driven memory chip shortage. Micron's last earnings report showed revenue of $41.46 billion and net income of $28.24 billion. The Cloud Memory Business Unit, which provides high-bandwidth memory to data center customers, accounted for more than 33% of total revenue. Earlier this year, Samsung narrowly avoided a strike after agreeing to a deal that gave its foundry workers bonuses up to $400,000 per employee.
Potential Impact
It is unclear whether an agreement reached in Taiwan would affect Micron workers in other countries. About 60% of Micron's production capacity is concentrated on the island, with most HBM production taking place at facilities there. Given the profitability of the data center boom for the memory industry and the precedent set by Samsung and SK hynix workers, Micron employees' demands are likely to be comparable. Management will likely have to negotiate, as production disruptions could lead to significant losses for the company.
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Micron Taiwan union seeks profit-sharing as 80% back strike vote
