Investing.com -- Micron Technology (NASDAQ: MU) shares fell 1.8% in premarket trading Tuesday, dragged down by reports that the company plans to increase incentive payments to its Taiwan-based employees alongside broader headwinds as higher interest rates weighed on technology stocks.

The Taipei-based Liberty Times reported that Micron will deliver its highest incentive pay plan to its Taiwan-based workforce in response to a potential strike by its labor union.

The company is expected to announce details of its incentive pay plan in October, according to the report. Micron’s labor union is seeking to adjust the current performance bonus system for a more transparent profit-sharing mechanism tied to company profitability.

The report indicated that Micron will continue communicating with its employees regarding the matter.

The news comes as labor relations at the memory chip manufacturer’s Taiwan operations face scrutiny, with workers pushing for changes to compensation structures. Taiwan serves as a key manufacturing hub for Micron’s operations in the Asia-Pacific region. Coupled with sector-wide pressure from high interest rates dampening valuations across tech, the labor dispute added further downward momentum to the stock.