Samsung Biologics Union Member Monitored Other Department's Operations During Strike... Company Files Criminal Complaint

Entry and Monitoring of Production Areas by Non-Quality Staff
Criminal Complaint Filed for Obstruction of Business

Samsung Biologics has launched strong legal action, including filing lawsuits and criminal complaints, in response to illegal activities such as obstruction of business that occurred during the labor union strike.

According to industry sources on May 6, Samsung Biologics filed a criminal complaint on May 4 against a union member for obstruction of business. The individual, who was not a member of the Quality department, entered the production site during the strike period and monitored operations, thereby disrupting work.

Deviation from job scope, such as 'unauthorized process monitoring'... Criminal complaint for obstruction of business

It was confirmed that the union member entered a process area of another department without legitimate work authority and conducted unauthorized surveillance activities, thereby hindering normal operations. The company regarded this not merely as union activity, but as a clear deviation from their job scope and a serious illegal act infringing on the company’s inherent management and facility control rights. The company emphasized that all activities within the process must be strictly controlled under GMP (Good Manufacturing Practice) and SOP (Standard Operating Procedures), and that unauthorized activities by non-approved personnel in the manufacturing area seriously undermine the safety management system.

Yonhap News Agency

While the company respects legitimate union activities based on labor laws, it also announced a zero-tolerance policy toward illegal acts that undermine order in the workplace. This stance is interpreted as a firm commitment to protect trust with global clients and safeguard shareholder value by decisively responding to any actions that threaten the stability of the biopharmaceutical production process.

The company stated that, starting with this criminal complaint, it will continue to hold those responsible for illegal activities in the production site fully accountable under the law. It is expected that the union members involved will be subject to criminal penalties based on the investigation results, as well as strict follow-up measures such as disciplinary action and claims for damages within the company.

Union faces criticism for illegal actions and excessive demands... Growing concerns inside and outside the industry

As illegal activities have intensified the conflict, excessive demands from the union have also led to a prolonged negotiation deadlock.

The union’s continued excessive demands, such as a staggering 21.3% real wage increase for new employees, have further prolonged the deadlock. The union is currently insisting not only on a 14.3% increase in base salary and a fixed increase of 3.5 million won per person, but also on a settlement payment of 30 million won per person and the distribution of 20% of operating profit as a performance bonus, disregarding the management environment.

Furthermore, the union has made it a condition in collective bargaining agreements to formalize items that could infringe on management rights, such as ▲ notification of executive appointments and dismissals, ▲ union approval required for profit distribution and personnel assignments, and ▲ union deliberation and approval for company spin-offs and outsourcing.

As the union’s illegal activities and unreasonable demands continue, the market is increasingly voicing pessimistic outlooks that strike-related risks will have a direct impact on corporate profitability. Recently, Samsung Electronics received a target price downgrade due to concerns over deteriorating performance caused by strikes, and there have also been warnings that shareholder value at Samsung Biologics is suffering significant damage.

In fact, on May 6, Kiwoom Securities estimated that full and partial strikes have already resulted in approximately 150 billion won in lost sales. It projected that if the strike is prolonged, the share price will inevitably be affected. The stock price has already declined 12% compared to the beginning of the year and dropped 24% from its January peak, showing a sluggish trend. Previously, on April 23, Samsung Securities also lowered its target price from 2.2 million won to 2.1 million won.

There is growing criticism in the market that the union’s unreasonable demands and illegal activities are ultimately leading to a decline in global credibility and stock performance, with the damage being passed directly onto ordinary shareholders.

This content was produced with the assistance of AI translation services.