"Even a 45 Million Won Bonus Isn't Enough"...Why Did the Micron Union Reject a Record-Breaking Performance Bonus?

Union Rejects Cash Bonus Proposal by Management
Potential Production Disruptions if Taiwan Sites Go on Strike

Micron proposed its largest-ever performance bonus to approximately 60,000 employees worldwide, but the plan was rejected due to opposition from the labor union. The Micron Taiwan union is reportedly demanding that 15% of the company's operating profit be distributed to employees.

According to multiple foreign media reports on the 15th (local time), the Micron Taiwan union held a press conference that day, requesting a profit-sharing system in which 15% of operating profit would be distributed to employees.

Micron Taiwan Production Facility. Micron Website

The union also rejected the cash bonus offer previously proposed by Micron. Furthermore, the union insisted on the adoption of a long-term and transparent profit-sharing system rather than a one-time payout, warning of a possible strike if negotiations break down. According to Chinese media reports, the Micron union is reportedly demanding profit-sharing terms similar to those given to employees at Samsung Electronics and SK hynix.

Earlier, on September 11, Micron had announced its fiscal year 2026 (FY) employee compensation plan. In the case of the Taiwan branch, employees hired by August 29 of last year will receive a cash appreciation bonus of 1 million New Taiwan Dollars (approximately 45 million won) per person. For production line workers, the total compensation—including annual salary, cash bonuses, and restricted stock units (RSUs)—can reach up to the equivalent of 68 months' pay.

However, according to the union, Micron's current employee compensation amounts to only about 4.4% of operating profit. The union also criticized the "up to 68 months" figure, arguing that this number was calculated based on the lowest-paid workers, which artificially inflated the actual level of compensation.

The union warned that if the management fails to present concrete answers during discussions scheduled for the 18th and 21st, they may proceed with the breakdown of negotiations and hold a strike authorization vote. At Micron Taiwan's Taoyuan and Taichung sites, over 80% of employees are reportedly union members; therefore, a general strike could potentially disrupt production.

Meanwhile, under United States Generally Accepted Accounting Principles (GAAP), Micron's net profit surged from $778 million (approximately 1.0609 trillion won) in fiscal year 2024 to $8.54 billion (approximately 11.5914 trillion won) in the previous year. Due to the ongoing semiconductor boom driven by artificial intelligence (AI), net profit is expected to increase further this year.

This content was produced with the assistance of AI translation services.