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Micron faces potential strike as Taiwan unions reject record bonus offer

Micron faces potential strike as Taiwan unions reject record bonus offer
Photo by Winston Chen / Unsplash

Micron offered its Taiwan workforce the largest payout in company history, including bonuses worth up to 68 months of basic salary, but the unions rejected the proposal within hours. The workers argue that the issue is not the size of the one-time bonus but the lack of a permanent profit-sharing formula. They want Micron to replace its current Incentive Pay Plan with a system that allocates 15 percent of operating profit to employee bonuses, distributed quarterly. The union points out that competitors like Samsung and SK Hynix already share 10 to 15 percent of profits, resulting in payouts far higher than Micron’s offer. Micron’s current plan pays roughly 2.6 months of salary even during record-breaking profit periods, which workers say is unfair. A second mediation round is scheduled for September 21, and a strike vote may follow if talks fail. With Taiwan producing most of Micron’s chips, a walkout could disrupt the global memory supply chain at a critical moment. Analysts expect a deal, but the stakes remain high as DRAM supply is already tight and prices are projected to stay elevated.

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