Micron workers in Taiwan to strike in push for bigger profit share

Workers at a Micron Technology plant in Taiwan are set to go on strike on Thursday, as they push for a more substantial share of the company's profits, according to a labor union representing the employees. The demand stems from a surge in global demand for chips used in AI data centers, leading to significant revenue growth for chip designers, producers, and assemblers. Micron recently announced it would compensate staff with up to 68 months' pay, but the workers have rejected the one-off payment.

The strike comes as Micron is currently engaged in talks with two unions representing 12,000 out of 15,000 workers at its Taoyuan and Taichung plants. The union in charge of the Taoyuan workers announced that the Thursday strike will coincide with mediation talks with the company, but the duration of the strike remains unclear.

The primary objective of the strike is to fortify the union's position during the mediation process and to encourage Micron to present a concrete profit-sharing plan. In a statement, the union urged all members of the Micron Taiwan Union to unite, fight together, and negotiate collectively. They emphasized that their actions would signal their dissatisfaction with the current system and demonstrate their determination to establish a fair profit-sharing system.

Per the union's previous announcement, Micron staff legally have the right to strike and form picket lines following a vote in favor of action earlier this month. The unions are demanding a one-off bonus equivalent to 83 months' salary, as well as a permanent system that allocates 15% of the company's operating profits to worker bonuses, distributed on a quarterly basis instead of annually.

Micron, which manufactures around 50%-60% of its chips in Taiwan, had previously pledged to provide staff with up to 68 months' pay, but the workers rejected the one-time payment.