[News] Micron Taiwan Strike Vote Possible in Sept. as ~80% Union Back Action Over Bonus Gap With Samsung, SK hynix

Surging memory prices are lifting profits at Samsung, SK hynix, and Micron, while also fueling demands for higher employee payouts. According to Commercial Times, Micron’s two major unions in Taiwan are calling for the company’s Incentive Pay Plan (IPP) to be replaced with what they consider a fairer profit-sharing system comparable to industry peers. Mediation is expected to begin in late August and mid-September, and if talks fail, a strike vote could take place as early as September.

At the heart of the dispute is how Micron shares its growing profits with employees. The union argues that Micron’s IPP is less transparent and pays substantially less than the profit-based systems at Samsung and SK hynix, the report notes. Its figures show that Samsung’s semiconductor division and SK hynix allocate 10.5% and 10% of profits, respectively, to employee bonuses. Liberty Times adds that Micron Taiwan’s annual performance bonuses are reportedly capped at 200% of the target, equivalent to around five months of salary, while actual payouts are said to be about 2.6 months.

The dispute appears to have gained substantial employee support. Micron’s two Taiwan unions have around 10,000 members combined and have begun holding briefings on potential strike action, with a preliminary survey showing that around 80% of employees polled support a strike, the report notes.

Memory Boom Fuels Broader Labor Tensions

Compensation disputes are also emerging at other major memory makers. According to Reuters, SK hynix union members narrowly rejected a tentative wage agreement on August 25 that included a 6.3% wage increase and changes to its profit-sharing scheme. While SK hynix already allocates 10% of annual operating profit to employee bonuses, some workers opposed a proposal to pay 60% of the bonuses in company shares due to concerns over stock-price volatility. The report adds that in May, Samsung Electronics and its unionized workers reached an agreement on performance pay, averting a major strike.

The memory boom, however, is also fueling divisions within Samsung over performance bonuses. With the semiconductor-focused DS division posting record results while DX faces weaker performance, the two sides are increasingly divided over how compensation should reflect their respective contributions, Newspim notes. The divide is now spilling into wage negotiations, with a DS-heavy union suggesting separate bargaining if the interests of DS and DX cannot be adequately represented under a single system.

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(Photo credit: Micron)