Micron Memory Taiwan and a union at its Taichung operations signed a labour-management agreement on 21 October and withdrew from mediation scheduled for 22 October, Reuters reported. The deal covers Micron’s largest Taiwan operation, where workers had been heading into another round of talks.
Key points
- Micron and the Taichung union signed an agreement covering multiple issues and withdrew from mediation set for 22 October.
- Their joint statement did not disclose the agreement’s terms.
- The separate Taoyuan union is scheduled to stage a one-day warning strike on 22 October in its dispute over bonuses and profit-sharing.
Taichung agreement ends scheduled mediation
The company and union said they had reached agreement on multiple issues. Their joint statement did not disclose the terms, Reuters reported, though it said each side would communicate details to affected employees in the coming days.
Micron employs about 15,000 people in Taiwan, where it makes DRAM and high-bandwidth memory chips used in AI servers. The Taichung union represents workers at the company’s largest operation in the country. A disruption there could affect already strained global memory chip supplies, Reuters reported.
The agreement removes the scheduled Taichung mediation from the calendar. It concerns that site’s union, while workers at Micron’s Taoyuan operation have their own union and a separate dispute over how employees share in the company’s performance.
Taoyuan union presses for 15% profit-sharing
The Taoyuan union wants a standing system that allocates 15% of operating profits to employees, The Chosun Daily reported. It points to compensation frameworks at Samsung Electronics and SK Hynix that link employee rewards to company performance.
Micron announced a special cash bonus of 1 million New Taiwan dollars in September, along with separate performance-based cash and stock rewards for Taiwan employees who met tenure requirements. The Taoyuan union has argued for a long-term, transparent profit-sharing arrangement rather than one-off payments.
The union estimated that applying its proposed 15% system to recent company earnings would produce bonuses worth approximately 83 months’ salary. That is the union’s estimate for its proposal, rather than a term announced as part of the Taichung agreement.
AI Affairs previously reported that the Taoyuan union had set a 22 October strike in the bonus dispute. The planned walkout had been timed to coincide with the Taichung mediation that the company and that site’s union have now withdrawn from.
The Taoyuan union is due to hold its one-day warning strike on 22 October. It did not immediately respond to Reuters’ request for comment on whether it would proceed after the Taichung agreement.