"Union Demands Consent for Hiring and Performance Evaluation"... Samsung Biologics Strike Enters Third Day

Losses Snowball as Strike Continues from May 1
Management: "Losses Already Exceed 150 Billion Won"
Union: "We Will Also Take Part in Recruitment, HR, and M&A Decisions"

As the full-scale strike by the Samsung Biologics labor union enters its third day as of May 3, the conflict between labor and management has escalated beyond wage negotiations to controversies over intervention in personnel and management rights. Initially triggered by disagreements over the wage increase proposal presented by management, the situation has become more complicated as the union included a demand for prior consent rights over the company’s key management decisions—such as new recruitment and mergers and acquisitions—in its collective bargaining proposal. Particularly, the massive production disruptions caused by the strike, combined with controversy surrounding the actions of the union leadership, have raised concerns that the ongoing dispute could undermine the company’s credibility, which has been built in the global contract development and manufacturing (CDMO) market.

"Union Demands Consent for New Hires, Performance Evaluation, and M&As"

One of the main points of contention currently blocking negotiations is the union’s collective bargaining proposal, which includes articles related to core management rights. The labor union is demanding that the company obtain the union’s prior consent when making major management decisions such as new recruitment, setting performance evaluation standards, and future mergers and acquisitions. Management and industry officials point out that this constitutes excessive intervention into personnel and management rights, which are the unique prerogative and responsibility of the company’s executives. In the biopharmaceutical industry, where the pace of market change is rapid and global competition is fierce, timely recruitment, flexible organizational management, and appropriate M&A strategies are vital for survival. Human resources and labor relations experts note that while it is the union’s legitimate role to protect employment stability, restricting hiring or management strategies themselves can significantly impair a company’s ability to respond to the market, ultimately undermining the competitiveness of the entire organization.

Negotiations over wages and welfare are also deadlocked due to clear differences in positions. Management has held a total of thirteen rounds of practical negotiations and CEO meetings since March. The company has proposed a 6.2% increase in base salary and a one-time bonus of 6 million won, taking into account its current payment capacity. However, the labor union rejected this offer, demanding a 14% increase in base salary and a 30 million won incentive payment. With the gap between the two sides remaining wide, the conflict eventually led to a halt in operations.

On the 30th of last month, one day before the strike of the Samsung Biologics labor union, a labor union flag was hung at the Samsung Biologics factory in Yeonsu-gu, Incheon. Photo by Yonhap News

The labor union had originally scheduled May 1 as the start date for the full-scale strike, but began striking in some production processes as early as April 28. This acceleration of the timeline had an immediate impact on production sites. The shutdown of the subdivision process—one of the core steps in pharmaceutical manufacturing—resulted in a cascade of disruptions throughout the entire production line. Given the nature of biopharmaceuticals, strict quality control and adherence to delivery deadlines are essential; if one process stops, it inevitably causes delays in the entire finished product production schedule. Management estimates the financial losses from the partial process strike at approximately 150 billion won. Given that trust with global clients is paramount in this contract-based industry, prolonged work stoppages could not only lead to short-term sales losses, but could also have negative effects on future orders and the company’s long-term competitiveness.

Union Leader on Overseas Trip... Government Mediation Thwarted by Union’s Intransigence

In addition to the union’s actions, the attitude of the leadership driving the strike has intensified the controversy. It was revealed that the union leader, who should have been commanding the situation on site after declaring a full-scale strike and advancing the strike date, actually left for an overseas trip during the strike period. Even within the union, there has been criticism that it is “nonsensical” for the head of the organization to be absent during a period of significant economic impact on the company and heightened uncertainty on the ground. The lack of leadership and moral responsibility, when the leadership should be resolving the crisis, is undermining the momentum needed for resuming negotiations and resolving the issue.

The government’s attempts at mediation have also stalled due to the union’s unyielding stance. At a tripartite meeting between labor, management, and government hosted by the Central Regional Employment and Labor Office of the Ministry of Employment and Labor on April 30, the union leader did not attend, citing his overseas trip. Other union executives present at the meeting demanded the replacement of all management-side negotiators as a precondition for talks—a demand considered unacceptable by management. As a result, there is growing criticism that the union is effectively using these demands as a pretext to avoid dialogue.

A Samsung Biologics representative stated, “Even during the strike, we participated in the government’s mediation efforts as a sincere attempt to resolve the situation through dialogue,” adding, “The union must stop making unreasonable demands and coercing members to strike, and return to the negotiation table immediately with a sense of serious responsibility.”

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