Taiwan President Urges Micron to Avert Strike as Union Demands 15% Profit Share
MU has more than doubled off its 52-week low of $186.25.
Summary
Taiwanese President Lai Ching-te publicly urged Micron and its unions to negotiate in good faith to avert a strike, speaking at the opening of Micron's new Taichung assembly and testing facility. The dispute centers on bonuses, with the union seeking a permanent profit-sharing scheme allocating 15% of operating profit to employees. The Taoyuan union secured strike authorization last week with 1,994 of 2,012 voting members backing action, and mediation ended without agreement in September. This escalates labor risk at a key AI memory chip production hub, following the September 1 Reuters report that unions representing 10,000 of 15,000 workers were moving toward a strike. No strike date has been set, but the presidential intervention and failed mediation raise the probability of disruption.
At the time of this announcement, MU was trading at $877.83 on NASDAQ in the Technology sector, with a market capitalization of approximately $1T. The 52-week trading range was $186.25 to $1,255.00. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Seeking Alpha.