Unionized workers at Samsung Biologics, the biotech arm of Samsung Group, have initiated a five-day general strike to demand higher wages and expanded performance-based compensation. This strike is the first labor action since the company’s inception in 2011. Samsung Biologics is striving to minimize disruptions by utilizing all available staff, although it concedes that some operational impact may be inevitable, as reported by Yonhap news agency.
The company anticipates potential losses exceeding 640 billion won (US$433 million) from a full-scale strike, approximately half of its first-quarter sales totaling 1.26 trillion won. In a communication to employees on Friday, John Rim, the President, and CEO of the company, urged caution regarding participation in the strike, cautioning of potential irreversible losses for both the company and its workforce.
The union is advocating for a 14 percent raise in both base and performance-related pay, a one-time cash incentive of 30 million won per worker, and bonuses equivalent to 20 percent of the annual operating profit. Conversely, the company has proposed a combined 6.2 percent increase in base and performance pay. Despite 13 rounds of negotiations between December and March, significant disparities remain unresolved between the two parties.
Samsung Biologics had sought a court injunction last month to halt the planned strike, with the court partially granting the request by limiting industrial action in three out of nine production stages, while permitting strike activities in the other six. The company promptly appealed this decision. The union, in a statement, emphasized that the strike is not solely about wages but also reflects management’s decision-making lapses.
Industry experts caution that any disruptions in the production process could impact product quality, highlighting the importance of “process integrity” as a fundamental requirement for biopharmaceutical manufacturing, as emphasized by global regulators like the U.S. Food and Drug Administration (FDA). Samsung Biologics and its union are scheduled for further discussions on Monday mediated by a regional labor office of the labor ministry to chart the course of future negotiations.
