Why are Micron's Taiwan workers rejecting up to 68 months bonuses & even threatening a strike? - Mothership

The head of the Micron Taiwan workers' union said the workers were not interested in a one-off payout.

Photo from Taiwan's Central News Agency.

Taiwanese employees at U.S. chipmaker Micron have rejected a reward package announced by the company on Sep. 11, 2026, saying they want a long-term profit-sharing mechanism instead.

Under the reward package, employees in Taiwan would receive bonuses equivalent to 35 to 68 months for the fiscal year of 2026.

The minimum cash compensation will be about NT$1.7 million (about S$68,000).

The Micron Taiwan workers' union has since called for an alternative arrangement, under which 15 per cent of the company's operating profits will be allocated to employees.

According to a report by local news outlet Focus Taiwan, the head of the Micron Taiwan workers' union, Lin Che Jui, said the reward package had been proposed by Micron without prior consultation or agreement with the union.

Lin said the company appeared to be seeking to influence public opinion through the announcement.

However, the union was not interested in a one-off payout, he said.

Rather, they wanted a long-term and fair system for distributing the company's profits.

Lin called on Micron to establish a transparent and verifiable profit-sharing mechanism under which 15 per cent of the company's operating profits would be distributed to employees.

Mirror Media also reported that the union raised its profit-sharing demand on Sep. 4, but the company said it could only make a decision after consulting its board in October. Hence, this one-time reward announcement came as a surprise to the union.

Two rounds of negotiations are reportedly scheduled for Sep. 18 and 21.

According to Lin, if the company continues to try and influence the negotiations, the union would declare that talks had broken down and hold a vote among its members on whether to strike.

The reward package announcement comes after unions representing about two-thirds of the local Micron workforce in Taiwan signalled support among members for a strike.

Citing international media reports, Focus Taiwan said Taiwan is Micron's largest memory chip production base and accounts for about 60 per cent of the company's total production capacity.

Industry sources told Focus Taiwan that a strike at Micron Taiwan could further constrain chip supplies and worsen an existing supply-demand imbalance amid strong demand driven by artificial intelligence.

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

Operators, technicians, and shift engineers are among those eligible for the payouts under the reward package.

Entry-level engineers are expected to receive rewards averaging NT$3.4 million (around S$136,200), including an average of NT$2.9 million (around S$116,170) in cash compensation.