Incheon: Unionized workers at Samsung Biologics, the biotech arm of Samsung Group, have embarked on a five-day general strike, demanding higher wages and expanded performance-based compensation. This marks the first labor strike since the company's inception in 2011.
According to Yonhap News Agency, Samsung Biologics is deploying all available personnel to minimize operational disruption but acknowledges that some impact may be unavoidable. The company estimated potential losses from a full-scale strike could exceed 640 billion won (US$433 million), approximately half of its first-quarter sales of 1.26 trillion won.
In a message to employees, President and CEO John Rim urged caution, warning that participating in the strike could lead to irreversible losses for both the company and its employees. Rim emphasized the company's commitment to sincere dialogue with the union to stabilize labor-management relations and foster a workplace based on mutual trust and respect.
The strike has forced Samsung Biologics to halt some batch production of anticancer drugs and HIV treatments, with current losses estimated at around 150 billion won. The union is seeking a 14 percent increase in both base and performance-related pay, a one-off cash incentive of 30 million won per worker, and bonuses equivalent to 20 percent of annual operating profit. In contrast, the company has proposed a combined 6.2 percent increase in base and performance pay.
Negotiations have stalled despite 13 rounds of talks between December and March. Last month, Samsung Biologics filed for a court injunction to prevent the strike. The court partially upheld the request, restricting industrial action across three of the company's nine production stages while allowing strike activities in the remaining six. The company has appealed the ruling.
The union stated that the strike is not solely about wages but also management's failure in decision-making. It criticized the company for responding with legal pressure instead of engaging in substantive negotiations, following the breakdown of government-mediated talks.
Industry officials have warned that disruptions at any production stage could affect product quality. Regulators like the U.S. Food and Drug Administration emphasize "process integrity" as a core requirement for biopharmaceutical manufacturing.
Samsung Biologics and its union are scheduled to reconvene Monday under mediation by a regional labor office of the labor ministry to discuss future negotiation directions.