Micron Taiwan union rejects one-time reward package

Taipei, Sept. 15 (CNA) The Micron Taiwan workers' union on Tuesday rejected a reward package unveiled by U.S.-based Micron Technology Inc. last week, saying it instead wants a long-term mechanism under which employees would share 15 percent of the company's operating profits.

Speaking to reporters, union head Lin Che-jui (林哲瑞) said that while the union and the company are still in talks over the current bonus dispute, the reward package was proposed unilaterally by the employer without reaching an agreement with the union.

Lin said he suspected the company was seeking to influence public opinion with the move.

On Sept. 11, Micron announced a reward package under which employees in Taiwan would receive compensation equivalent to 35-68 months' pay for fiscal 2026, after the union threatened to strike.

Under the compensation program, employees in Taiwan will receive at least NT$1.7 million (US$53,459) in cash compensation for fiscal 2026, while entry-level engineers are expected to receive an average of NT$2.9 million in total compensation, including stock rewards. Average total compensation is expected to reach NT$3.4 million.

Lin said the union was not seeking a one-time package but instead wanted a long-term, fair system for distributing profits. He urged Micron to establish a transparent and verifiable profit-sharing mechanism under which 15 percent of the company's operating profits would be distributed to employees.

Lin said whether the union stages a strike will depend on the outcome of two rounds of negotiations scheduled for Friday and Sept. 21.

He said that if the company continues to seek to influence the talks, the union will declare that negotiations have broken down and hold a vote among its members on whether to strike.

Global demand for memory chips has risen amid the artificial intelligence (AI) boom, tightening supplies and driving up prices. The trend has allowed companies including Micron, South Korea's Samsung Electronics Co. and SK hynix Inc. to post record sales and profits.

However, Micron workers in Taiwan have expressed dissatisfaction with bonuses they previously received, with some considering going on strike in protest.

According to international news reports, Taiwan is Micron's largest memory chip production base, accounting for about 60 percent of its total production capacity and primarily producing DRAM and high-bandwidth memory chips.

Industry sources said a strike at Micron Taiwan could further constrain supplies and exacerbate the existing supply-demand imbalance amid the AI boom.

In response, Micron said it would continue to listen to its employees and participate in the mediation process in good faith.

The company said its reward package was intended to allow all employees to share in its achievements.

Micron employs about 15,000 people in Taiwan and has invested more than NT$1.6 trillion in the country, according to the company.

Micron, the world's third-largest memory chip supplier, posted record sales of US$41.46 billion and net income of US$28.24 billion in its fiscal third quarter ending May 28, as a supply shortage drove up memory chip prices.