It seems that in the previous stages of negotiations, the Taiwan Micron Technology Employees Professional Association was able to obtain a salary allocation of 35 to 68 months as an annual reward. Now, union representatives are demanding that 15% of operating profits be distributed to company employees on the island in the form of bonuses.
Image source: Micron Technology
The previously agreed annual bonus only corresponds to 4.4% of Micron Technology’s operating profits, which is insignificant in the context of employee bonuses of other memory manufacturers. On September 18 or 21, at the request of the union, the company management should give the answer Much of the team is prepared to strike if this does not happen due to the new proposals from the staff association. The union already covers more than 80% of employees at Micron Technology’s two factories in Taiwan. In total, Micron has about 15,000 employees on the island.
Micron employees have also accumulated other complaints against management. In 2022, the company announced plans to reduce its global workforce by 10% and suspend bonuses for one year. From fiscal year 2024 to fiscal year 2025, Micron’s GAAP net profit grew from US$778 million to US$8.54 billion, and the bonuses received by Taiwanese employees were only equivalent to 2.37% of their monthly salary.
Union officials say the promise of bonuses of up to 68 months’ salary actually masks an ugly truth. First, this value calculation takes into account annual salary, a one-time payment of $31,498, stock compensation, and is generally based on figures for minimum wage employees. Micron’s Taiwanese employees are pushing for a regular distribution of 15% of the company’s operating profits to employees around the world and are demanding consistency and transparency in the formula for calculating such payments. A previous proposal to issue one-time bonuses to all Micron employees was approved unilaterally by management without an agreement with the union. The group will host an event Thursday at one of Micron’s two factories in Taiwan.
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