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Micron Taiwan Union Rejects 68-Month Offer, Demands AI Profits
Micron workers in Taiwan rejected a company pay proposal.
The proposal was described as being worth up to 68 months of pay.
Union leaders say that number makes the offer look bigger than it really is.
They say the calculation uses lower wages and assumes stock awards will become valuable over a long time.
The union wants employees to receive 15% of Micron’s global operating profit.
It wants these payments to be made every three months instead of once a year.
The union also wants a one-time fiscal 2026 payment equal to about 83 months of salary under its calculations.
If talks do not produce a new offer, workers may vote on whether to strike.
Micron’s Taoyuan-based union rejected a proposal advertised as providing up to 68 months of pay.
Union leaders said the 68-month figure relies on lower-wage benchmarks and long-term stock vesting assumptions.
The union estimates the proposal equals about 4.4% of Micron’s operating profit, below its 15% demand.
Workers are seeking quarterly distribution of 15% of Micron’s global operating profit starting in fiscal 2027.
The union may seek a strike vote if mediation talks on September 18 and 21 fail.
- Who
- The Taoyuan-based Micron union and Micron workers; union chairman Lin spoke for the employees.
- What
- The union rejected a proposed compensation package and demanded a permanent share of Micron’s operating profits.
- Where
- Taoyuan, Taiwan, a key location for Micron’s DRAM and high-bandwidth memory production.
- When
- The union rejected the proposal within hours; mediation talks are scheduled for September 18 and 21, with the profit-sharing plan proposed to begin in fiscal 2027.
- Why
- The union says the proposed 68-month figure overstates the package and wants employees to receive a larger, transparent share of the company’s profits.
Union’s demands
Company proposal
Value of the compensation package
Union’s demands
The union says the advertised figure of up to 68 months is misleading because it uses lower-wage benchmarks and assumes stock awards vest over a long period.
Company proposal
The proposal was presented as providing up to 68 months of pay, but the articles do not provide Micron’s detailed response to the union’s criticism.
Profit sharing
Union’s demands
The union wants a permanent mechanism allocating 15% of Micron’s global operating profit to employees, paid quarterly from fiscal 2027.
Company proposal
The rejected proposal does not meet the union’s requested 15% share; union leaders estimate it at about 4.4% of operating profit.
Next steps
Union’s demands
The union says it may declare negotiations broken and move toward a strike vote if Micron does not present a concrete profit-sharing proposal.
Company proposal
Micron is scheduled to participate in mediation talks on September 18 and 21, but its position on a possible strike is not stated.
Key facts
- Rejected proposal
- Advertised as providing up to 68 months of pay.
- Union’s assessment
- The package amounts to about 4.4% of Micron’s operating profit, according to union leaders.
- Profit-sharing demand
- 15% of Micron’s global operating profit for employees.
- Payment schedule
- Quarterly distributions rather than annual payouts.
- Proposed start
- Fiscal 2027.
- One-time demand
- A fiscal 2026 payment equivalent to about 83 months of salary under the union’s calculations.
- Reported profit
- Micron reported $28.24 billion in profit in the third quarter of fiscal 2026.
Quotes
Lin
Chairman of the Taoyuan-based Micron union
“a long-term, transparent and verifiable profit-sharing system”
businesstoday.in
Sources
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