Micron Taoyuan union plans one-day strike on Oct 22 over profit-sharing demand

The union at Micron's Taoyuan plant in Taiwan announced a one-day warning strike for 22 October, demanding that the company share its profit with employees on a formula like those of Samsung Electronics and SK hynix. According to Maeil Business, citing Reuters and other foreign media, the union said in a statement on 20 October (local time) that Micron should present a profit-sharing plan acceptable to employees across Taiwan. The union described the action as a warning strike rather than a break in negotiations and said it was ready to sign an agreement if Micron made an acceptable offer. [ 1 , 5 , 6 , 7 , 9 ]

The union's central demand is a standing system that distributes 15% of operating profit to employees, Seoul Shinmun and Chosun Ilbo reported. It also asked for a concrete proposal on this year's one-off bonus. The union estimated that applying the 15% formula would mean a bonus of about 83 months of salary. Hankook Ilbo said the union wants payment every quarter and noted that Samsung Electronics uses 10.5% of its chip division's operating profit for a special bonus pool, while SK hynix uses 10% of annual operating profit. [ 6 , 7 , 9 ]

Micron announced in September a special cash bonus of NT$1 million for Taiwan employees who meet a service requirement, along with separate bonus and stock compensation, according to Chosun Ilbo. Seoul Economic Daily, citing Reuters, said the package was equal to 35 to 68 months of base pay. The union rejected it and wants a long-term, transparent formula rather than one-off payments. Maeil Business reported that mediation between Micron and the Taoyuan union ended in September without agreement, and that Micron said it respects workers' legal rights and will consult in good faith with the Taoyuan and Taichung unions. [ 1 , 5 , 6 , 9 ]

The two Taiwan sites have separate unions. Chosun Ilbo and Seoul Shinmun reported that the Taichung union reached an agreement with Micron on 21 October and withdrew from the conciliation session planned for 22 October. The terms were not disclosed, and Chosun Ilbo said the company and the union would explain details to employees in the coming days. Seoul Economic Daily, writing on 20 October, had said the Taichung union was still negotiating and had not held a strike vote. Chosun Ilbo said the Taoyuan union had not answered whether it would still strike after the Taichung deal. [ 1 , 6 , 9 ]

Outlets differ on the Taoyuan strike vote. Seoul Economic Daily and Chosun Ilbo reported 88.3% in favour, with Chosun Ilbo giving 1,994 of 2,258 registered members. Korea Economic Daily and Newsis, citing KB Securities analyst Kim Dong-won, gave 99%. [ 1 , 2 , 3 , 6 ]

Kim said the Taoyuan plant accounts for about 22% of Micron's total DRAM capacity, so a strike could create considerable uncertainty for global DRAM supply. He said that if a strike spread to the Taichung plant, which he called a core HBM site, HBM output could also be affected, and that Samsung Electronics and SK hynix could gain pricing power. Chosun Ilbo cited TrendForce as saying that actual disruption would depend on the strike's scale, its length and Micron's response. [ 2 , 3 , 6 ]