Micron workers in Taiwan will strike Thursday over profit-sharing dispute

A union that speaks for Micron $MU Technology employees at the Taoyuan site in Taiwan will walk off the job on Thursday, pressing the U.S. chipmaker to offer a specific plan for sharing profits, according to Reuters.

The Taoyuan union said in a statement on Monday that the walkout is a gesture of support for the Taichung union, which sits down for a mediation session with Micron the same day. "Through our actions, we will make our dissatisfaction with the current system heard and demonstrate our determination to establish a fair profit-sharing system," the union said, according to Reuters.

The union gave no headcount for the walkout, according to Focus Taiwan. Local media reported the strike will last one day, according to Focus Taiwan. Reuters reported that the union gave no indication of the duration and intends to share more information on Thursday.

Micron said on Tuesday that it respects employees' legal rights and will continue constructive discussions with both unions to seek a solution acceptable to all sides, according to Focus Taiwan.

The Taoyuan union secured authorization to strike on Oct. 7, when 1,994 of the 2,012 members who cast ballots backed industrial action, according to Focus Taiwan. Under Taiwanese law, a union may strike only after going through a single mediation session and getting a majority of its membership to sign off. Mediation sessions involving Micron and the Taoyuan union concluded in September with no deal reached, according to Reuters.

The unions are seeking a long-term mechanism that would distribute 15% of Micron's operating profits to employees, according to Focus Taiwan. They have criticized the company's Incentive Pay Plan for lacking transparency. In an Oct. 14 statement, the Taoyuan union said Micron had not offered a concrete profit-sharing proposal after its board meeting on Oct. 9 and had instead introduced benefits such as meal subsidies and a gift selection program, according to Focus Taiwan.

Reuters reported that the Taichung union is still negotiating with Micron and has not yet polled its members on striking, while Focus Taiwan described the Taichung workers as striking.

Micron has a workforce of roughly 15,000 across Taiwan, according to Reuters. Focus Taiwan put the Taoyuan workforce at about 3,000 and the Taichung workforce at about 12,300, of whom roughly 2,400 and 11,000, respectively, are union members. Taichung is Micron's largest operation on the island, according to Reuters.

Taiwanese President Lai Ching-te urged employers and employees to keep negotiating in good faith at the Oct. 15 inauguration of Micron's second advanced packaging and testing facility in Taichung, according to Focus Taiwan.