Micron Taiwan Union Rejects Reward Package in Favor of Profit Sharing

The Micron Taiwan workers union has rejected a one time reward package offered by Micron Technology Inc. stating that it prefers a long term mechanism where employees receive 15 percent of the company's operating profits. The union head, Lin Che jui, told reporters that the reward package was proposed unilaterally by the employer without a prior agreement with the union. Lin suggested the company may have been attempting to influence public opinion with the move.

Micron announced the reward package on September 11 after the union threatened to strike. Under the plan, employees in Taiwan would receive compensation equivalent to 35 to 68 months of pay for fiscal 2026. This includes a minimum cash compensation of NT$1.7 million, with average total compensation, including stock rewards, expected to reach NT$3.4 million. Entry level engineers are expected to receive an average of NT$2.9 million.

Whether the union will proceed with a strike depends on the results of negotiations scheduled for Friday and September 21. Lin stated that if the company continues to influence the talks, the union will declare negotiations broken down and hold a member vote on a strike. Micron has responded by stating it will continue to participate in the mediation process in good faith and that the reward package was intended to let all employees share in the company's achievements.

Taiwan serves as Micron's largest production base, accounting for approximately 60 percent of its total capacity. Industry sources noted that a strike could further constrain supplies during an AI boom that has already driven record sales and profits for memory chip suppliers. Micron reported record sales of US$41.46 billion and net income of US$28.24 billion in its fiscal third quarter ending May 28.