Taiwan Micron staff plan strike for bigger cut of booming chip profits

Taiwan-based Micron Technology workers are set to go on strike on Thursday, seeking a larger share of the company's growing chip profits, according to the labor union representing them. The surge in demand for chips used in AI data centers has led to a significant increase in revenue for firms involved in designing, producing, and assembling these components.

However, as profits rise, the workers demand a fairer distribution of the gains. The union announced its decision following talks with Micron over remuneration involving 12,000 out of 15,000 employees working at the Taoyuan and Taichung plants. The strike is scheduled to occur during mediation discussions with the company, though the duration remains unspecified.

The union aims to use the strike to bolster its negotiating position and push Micron to propose a concrete profit-sharing plan. They call upon Micron Taiwan Union members to unite and negotiate collectively, expressing their discontent with the present system and their commitment to establishing a fair profit-sharing system. Micron has stated its commitment to working with the Taoyuan and Taichung Unions to reach a mutually beneficial resolution.

The workers have the legal right to strike and form picket lines following a recent vote in favor of action. The unions are seeking a one-time bonus equivalent to 83 months of salary as well as a permanent arrangement that allocates 15 percent of the company's operating profits to worker bonuses, distributed on a quarterly basis rather than annually.

Despite Micron's claim that it generates around 50-60 percent of its chips in Taiwan, the firm only offered an equivalent of up to 68 months of pay as a one-time payment, which was rejected by the workers.