The labor and management sides at Samsung Biologics have failed to narrow the gap on core issues, including “payment of performance bonuses equivalent to 15% of operating profit.” The union (Sangsang Labor Union) has announced a second general strike lasting three weeks starting on the 26th. Management stated that the union’s demands are at a level that is difficult to accept and expressed its position that it will respond to illegal actions with a zero-tolerance policy.
According to industry sources on the 6th, the labor and management sides at Samsung Biologics have yet to reach an agreement in the wage and collective bargaining negotiations (wage and collective agreement) that began last December.
Currently, the biggest points of contention between labor and management at Samsung Biologics are the wage increase rate and performance bonuses. They are also in conflict over the establishment and revision of collective agreement clauses that would allow involvement in personnel matters and management. The union demanded a fixed wage increase of approximately 15% in total and the distribution of performance bonuses equivalent to 15% of operating profit, among other things. Management proposed a wage increase rate of 6.2%.
The Samsung Biologics union stated on the 2nd, one day after the third post-hoc adjustment meeting, that “the union kept the door open for negotiations and refrained from collective action during three rounds of post-hoc adjustments,” adding that “to secure a victory in the 2026 wage and collective bargaining negotiations, the union will raise the level of collective action again and proceed with a second general strike.”
Following a full-scale strike from the 1st to 5 last year, the Samsung Biologics union carried out a law-abiding struggle. At the time, management estimated that production disruptions caused by the union’s full-scale strike resulted in losses of approximately 150 billion won. If the union actually proceeds with a three-week second general strike, the scale of the damage is expected to be even greater. The warning of a general strike by the union will inevitably act as a burden on Samsung Biologics, which is in the midst of fierce competition in the global biopharmaceutical CDMO (Contract Development and Manufacturing Organization) market. In particular, it has been pointed out that if the uncertainty surrounding the union’s strike continues for a long period, issues regarding client trust may also arise.
John Rim, Oh Ro-jik-seu (CEO) of Samsung Bio, expressed concern in an email sent to the union after the third post-hoc adjustment meeting, stating, “Samsung Biologics is currently conducting new order negotiations with numerous clients and is at a very critical juncture,” adding, “If production disruptions and process delays occur during this decisive period, not only will there be concerns about impacts on new orders, but there is also a high possibility that the long-standing trust with existing clients could be damaged.”
Park Jae-seong, Noh Jo-wi (Director) of Samsung Biologics, stated, “The second general strike can proceed procedurally without a separate vote by union members,” adding, “Unless a dramatic agreement is reached, our plan to proceed with the second general strike remains unchanged.” He also said, “(Regarding the demand for a collective agreement from Samsung Electronics) it was a decision that took into account legal disputes,” and added, “We are even considering an administrative lawsuit in the future.”
in THEBIO
