Unionized workers at Samsung Biologics, the biotech division of Samsung Group, are in the midst of their first general strike, now on its fifth day, to push for increased wages and expanded performance-based compensation. The strike, involving around 2,800 members out of the union’s total 4,000, commenced last Friday and is the first such action since the company’s inception in 2011. Following the five-day strike, the union intends to transition to a work-to-rule campaign starting Wednesday.
The workers are advocating for a 14 percent rise in base pay and performance-linked remuneration, a one-time cash bonus of 30 million won (US$20,390) per worker, and bonuses amounting to 20 percent of the annual operating profit. In contrast, the company has proposed a combined 6.2 percent increase in base and performance pay. Despite resuming discussions on Monday, both parties failed to reach a consensus and are scheduled for two additional meetings later this week to bridge their disparities.
Last month, the unionized workers staged a three-day partial strike, resulting in reported losses of at least 150 billion won (US$101.5 million) as per the company. A company source emphasized their commitment to resolving the issue through dialogue, responding to the labor ministry’s arbitration request during the ongoing strike. The company representative called on the labor union to cease their “unreasonable” demands and collective actions, urging a return to the negotiation table.
During the initial arbitration meeting last week, the labor union purportedly insisted on replacing all bargaining committee members as a precondition for talks. The company’s labor union disclosed that approximately 2,800 out of the 4,000 unionized members have engaged in the collective action. The company estimates potential damages from the strike at around 640 billion won, roughly half of its first-quarter sales.
