Unionized workers at Samsung Biologics launched a five-day general strike on Friday over pay disputes. This marks the biotech firm's first labor strike since its 2011 founding. The company is deploying personnel to minimize disruptions but reports some production halts.
Unionized workers at Samsung Biologics, the biotech arm of Samsung Group, began a five-day general strike on Friday, May 1, demanding higher wages and expanded performance-based compensation. This walkout marks the first labor strike since the company's establishment in 2011. The union seeks 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.
The company has proposed a combined 6.2 percent increase in base and performance pay. Negotiations failed to bridge differences despite 13 rounds of talks from December to March. Samsung Biologics is deploying all available personnel to minimize disruption but acknowledged unavoidable impacts, with some batch production of anticancer drugs and HIV treatments ceased, estimating current losses at 150 billion won. A full-scale strike could exceed 640 billion won (US$433 million) in losses, roughly half of its first-quarter sales of 1.26 trillion won.
In a Friday message, President and CEO John Rim urged employees to reconsider joining the strike, warning of irreversible losses. "The company will continue sincere dialogue with the union to help stabilize labor-management relations and build a workplace based on mutual trust and respect," he said. The company added it will respond responsibly to minimize client damage.
The union stated the strike stems from management's decision-making failures, criticizing legal pressures like injunctions instead of reasonable proposals after government mediation broke down. Last month, the company filed for a court injunction; the court restricted action in three of nine production stages, allowing it in the rest, and the company appealed. Industry officials warned disruptions could affect product quality, as regulators like the U.S. FDA emphasize "process integrity."
Samsung Biologics and the union are scheduled to meet Monday under labor ministry mediation to discuss future negotiations.
