Micron's labor union in Taiwan has rejected the largest performance bonus package the company has ever offered and is instead demanding a profit-sharing plan that would distribute 15% of operating profit to employees.
"Share 15% of operating profit, not a one-off bonus"
According to Reuters and other foreign media reports on the 15th, the union at Micron's Taiwan operations held a news conference that day and called on management to introduce a profit-sharing scheme that would distribute 15% of operating profit to workers.
The union also declined the cash bonus plan the company had proposed earlier. Its position is that Micron must establish a long-term and transparent profit-distribution structure rather than make one-time payments.
The union warned that it would not rule out a strike if negotiations fail to progress. Citing Chinese media reports, the union is seeking a level of profit sharing similar to the arrangements that apply to employees at Samsung Electronics and SK hynix.
Micron unveiled its fiscal 2026 compensation package on the 11th. At its Taiwan operations, employees who joined before Aug. 29 of last year are to receive a cash appreciation bonus of 1 million Taiwan dollars (about 45 million won) each. Production line workers were told that their combined salary, cash bonus and restricted stock units (RSUs) would amount to as much as 68 months of pay.
Union pushes back on "68 months of pay" claim
By the union's calculations, the compensation package amounts to only about 4.4% of Micron's operating profit. The union also argued that the phrase "up to 68 months" is misleading, saying the figure was calculated based on low-wage workers and could therefore exaggerate the actual level of compensation.
The union said that if management fails to provide a concrete response at talks scheduled for the 18th and 21st, it could declare negotiations broken off and hold a strike vote. More than 80% of employees at Micron's Taoyuan and Taichung sites in Taiwan are union members, raising the possibility that a full strike would disrupt production.
Micron's net profit under U.S. generally accepted accounting principles (GAAP) rose sharply to $8.54 billion (about 11.59 trillion won) last year from $778 million (about 1.06 trillion won) in fiscal 2024. With the boom in demand for artificial intelligence chips continuing, net profit is expected to grow further this year.
