Biden's Push For Unionization Faces New Challenge In Semiconductor Industry: Report

President Joe Biden faces another test of his commitment to revitalizing U.S. manufacturing and boosting organized labor, as unions turn their attention to the semiconductor industry.

The Communications Workers of America (CWA), representing around 700,000 tech and media professionals, is preparing for negotiations on a labor peace agreement with Micron Technology Inc. MU, Bloomberg reports.

Micron’s $50 billion investment in two New York factories, funded by the 2022 Chips and Science Act, marks a significant step.

The project could eventually expand to $100 billion over two decades and create up to 9,000 jobs. This agreement, if successful, would prevent picketing or strikes by the CWA while ensuring Micron refrains from anti-union activities.

Labor unions are leveraging Biden’s economic policies, which allocate substantial subsidies for technologies like semiconductors and clean energy, to push for new factory organization.

The United Auto Workers (UAW) recently organized EV battery plants and is targeting 14 more companies.

However, the semiconductor industry presents unique challenges. Prominent figures like Morris Chang, founder of Taiwan Semiconductor Manufacturing Co Ltd TSM have criticized organized labor.

Also Read: Micron Ordered To Pay $445M Penalty For Patent Violation: Report

Intel Corp. INTC, which received the largest Chips Act subsidy, has been hesitant to engage in union talks, according to CWA President Claude Cummings.

Despite initial setbacks with Intel, Cummings remains hopeful that an agreement with Micron could encourage other semiconductor companies to consider union negotiations. Many new chip factories are located in right-to-work states such as Arizona and Texas, where union membership cannot be mandated.

The CWA and UAW have both endorsed Biden for the 2024 presidential race, urging him to leverage Chips Act grants for stronger union commitments from companies like Intel, Micron, TSMC, and Samsung Electronics Co Ltd SSNLF.

The Chips Act funding is distributed in phases, contingent on companies meeting various benchmarks, providing the Biden administration with negotiating power.

While the specifics of these agreements remain undisclosed, the White House and Commerce Department have expressed support for partnerships between the semiconductor industry and labor unions.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Now Read: Ethereum ETFs Will Trade ‘Well Ahead Of November,’ Says JPMorgan: ‘Debate Around Staking Seems To Persist’

Photo: Shutterstock