Micron workers could be in line for fed job loss benefits

Published: Monday, July 23 2007 12:12 a.m. MDT

BOISE — Recently laid-off employees of Micron Technology Inc. might be eligible for additional benefits if the company persuades the federal government that the workers lost their jobs due to foreign competition.

The company filed a petition with the U.S. Labor Department this month requesting additional assistance for the former employees under the Trade Adjustment Assistance program.

If approved, the nearly 900 workers let go so far from the Boise facility could be eligible to receive extended unemployment benefits, retraining opportunities, and help finding other jobs and relocating.

Micron reported it lost $225 million in the third quarter that ended May 31, and as a result has to cut a reported 1,100 workers from its Boise facility. Micron is offering severance packages of two months' pay and benefits, based on an employee's length of service.

The company makes computer memory chips and said it was laying off workers to be more competitive with foreign manufacturers.

If the Department of Labor approves Micron's request, former Micron workers could receive up to two years of training and two years of extended unemployment benefits, much longer than the standard 26 weeks.

In 2003, the department approved a similar request when Micron laid off about 1,100 workers. Employees of other Idaho companies, including J.R. Simplot Co. and Hewlett-Packard, have also received help after losing their jobs due to work being sent out of the United States.

Micron, in its petition, said it had to restructure because of "significant pressures from foreign business."

The company reported that half of its production is based in the U.S., but that about 70 percent of its products are bought outside the country. The company said it could save money by making the memory chips closer to its customers.

"This restructuring will lead to work force reductions and an overall reduction of jobs at Micron within the United States over a period of time," the company said in its petition.

Micron currently has plants in Singapore, China and Italy.

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