Poor conditions for workers in US chip factories

1 min read

Reports suggest that many of the semiconductor companies that are set to benefit from US federal funds and tax breaks are failing their workforces.

Credit: Qasim Sumbul

In a story that first appeared in the Guardian newspaper, it’s suggested that while chip manufacturers are looking to obtain billions of dollars to boost the US semiconductor industry, conditions and pay within some of their factories are poor.

Both workers and labour unions are calling on companies to prioritise the wellbeing of employees over the wealth of shareholders.

While the industry booms many workers are struggling to survive on relatively low salaries and that despite $39bn in federal funds provided by the Chips and Science Act, which was signed by Joe Biden in 2022, being up for grabs.

Many companies across the sector are now facing increased scrutiny and a number have either agreed new deals with their work forces or have begun to talk to the unions about improving workers’ rights at new chip plants being planned across the US.

It’s not just about pay either, some workers are calling for an end to mandatory shutdowns that places workers on furloughs and improved safety around hazardous chemicals.

A coalition of environmental organisations and unions, including the United Auto Workers, Sierra Club and Communications Workers of America, have publicly supported these calls.

It seems odd, but not surprising, that while many well-known companies are set to receive billions in public funds, those working for them are treated – in some cases – as an after-thought.

Many of the jobs involve handling dangerous chemicals and processes so why shouldn’t workers be well-trained and better paid for the risks they are taking?

According to the Institute for Policy Studies, in a report published in July, the US government should ensure that federal funds via the Chips Act are not used to increase executive compensation or enable stock re-purchases.

This is public money and workers in this sector are a major part of why so many of these tech companies are so profitable, so why shouldn’t they receive a living wage, better training and safe conditions in which to work?