New York’s Pension Fund Pressures Micron to Make Union Deal

(Bloomberg) -- New York’s $260 billion pension fund is urging Micron Technology Inc. to adopt a global policy of labor neutrality, which would pave the way for workers at the company’s chip factories to form and join unions. 

Micron previously agreed to hold talks with the Communication Workers of America in New York about such an agreement, after the chipmaker won a preliminary award for billions in federal grants and loans from the 2022 Chips and Science Act. But the negotiations have been “disappointing” so far, according to a CWA spokesperson. 

“We have had discussions with Micron but have not made meaningful progress toward an enforceable labor peace agreement,” the union said in a statement. 

Micron said it “respects the rights of workers to form and join trade unions of their own choosing, to bargain collectively and to peacefully assemble as permitted under applicable local law.” It didn’t immediately respond to a request for comment on the union’s characterization of the discussions.

Under a typical neutrality accord, companies agree not to interfere with organizing and workers pledge not to disrupt operations. That would be a boon for unions looking to organize a wave of new factories spurred by President Joe Biden’s economic policy. 

It’s an uphill battle in the semiconductor industry, where companies have resisted unionization over concerns including the risk of adversity between labor and management. Intel Corp., CWA President Claude Cummings said earlier, has responded coolly to the prospect of labor peace discussions. 

New York State Comptroller Thomas DiNapoli said that a neutrality policy at Micron would reduce “the likelihood of labor disputes, strikes or work stoppages that could disrupt operations and negatively impact shareholder value,” according to his July letter to Micron Chief Executive Officer Sanjay Mehrotra. The New York State Common Retirement Fund owned about 1.7 million Micron shares as of March 31. Micron hasn’t responded to the letter, according to Mark Johnson, the fund’s press secretary. 

Micron is investing as much as $100 billion to build as many as four chipmaking factories in upstate New York, and is in line to receive $6.1 billion in Chips Act grants, plus billions more in loans and tax credits. That’s on top of $5.8 billion in incentives from the state, which has its own semiconductor subsidy program. 

--With assistance from Ian King.

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