Samsung Biologics Strike Shifts to Indefinite Work-to-Rule Campaign... "Losses Already Exceed 150 Billion Won"

After a five-day full-scale strike, the labor union at Samsung Biologics has resumed on-site operations, but has shifted to an indefinite "compliance struggle" by refusing to work overtime and on holidays. With concerns mounting over significant production disruptions due to the prolonged labor dispute, the outcome of labor-management negotiations scheduled for this week is expected to be a key factor in resolving the situation.

According to industry sources on May 6, the Samsung Biologics Win-Win Chapter, which is part of the Samsung Group's overarching corporate labor union, staged a full-scale strike from May 1 to May 5 by having union members take paid leave on weekdays and refuse to work on holidays. The union returned to the workplace on May 6. However, it made clear its intention to continue its indefinite compliance struggle by refusing all overtime and holiday shifts.

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Regarding the return to work, a union official stated, "We will strictly comply with safety procedures and GMP (Good Manufacturing Practice) regulations." The union intends to continue pressuring management by working only within the boundaries of the regulations.

Due to the nature of contract manufacturing in biopharmaceuticals, management is closely monitoring the potential impact of the union's compliance struggle on actual production. The company stated, "The scale of losses will vary depending on the methods used in the compliance struggle," and added, "Since biopharmaceutical manufacturing processes operate 24 hours a day, not only can the refusal of overtime and special shifts cause damage, but if essential personnel respond passively during emergencies, the losses could escalate further." The company continued, "We are continually informing employees about the unique nature of our industry, and we will do our best to minimize losses through advance preparations for emergencies."

Previously, from April 28 to April 30, the union staged a partial strike with about 60 members. As a result, production of some of the company’s major products, such as anticancer drugs and treatments for human immunodeficiency virus (HIV), was temporarily halted. The company estimated that losses from the operational disruptions during this period amounted to approximately 150 billion won.

Labor and management remain at an impasse over key issues. The union is demanding a 30 million won incentive per person, an average 14% wage increase, and a profit-sharing program that allocates 20% of operating profit as bonuses. In addition, the union is calling for a flat raise of 3.5 million won for all employees. This flat raise alone would result in about a 7% increase based on the starting salary for new employees. When combined, the total wage increase rate reaches 21.3%, more than three times higher than management's record-high proposal of 6.2%. On May 4, both sides sat down for negotiations mediated by the Central Regional Employment and Labor Office, but failed to bridge their differences.

Despite the shift to a compliance struggle, channels for dialogue between labor and management remain open. On May 6, the chief negotiators from both sides are scheduled to hold a one-on-one meeting. This will be followed on May 8 by a tripartite meeting involving the Ministry of Employment and Labor. Both parties have expressed their intent to keep the lines of communication open, given the financial and operational burdens resulting from the strike and production disruptions.

In this context, the union is seeking a breakthrough by proposing new negotiation options. The union said, "There has been no narrowing of differences so far," but added, "Since both sides are incurring losses, as one possible exit strategy, the union has actively proposed not only increasing the incentive payment, but also allocating part of the funds to a labor-management win-win fund, which would be used for community contributions and support for partner companies." Management responded, "Since we have two more rounds of talks scheduled this week alone, we will participate in the discussions in good faith."

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