Is 'Settlement Before Chuseok' Out of Reach Again?... Samsung Biologics Labor-Management Talks at Another Crossroads

Mediation Committee Urges Agreement by 20th–22nd at the Latest

Gap Remains Wide Between Labor and Management Over Wages and Bonuses

Union Warns of Stronger Action if Intensive Talks Stall

The wage and collective bargaining agreement negotiations between Samsung Biologics management and labor have once again reached a critical juncture. The talks, which began in December of last year, have dragged on for over nine months. Although a three-way dialogue between labor, management, and government resumed for the first time in 109 days, the first post-mediation session failed to yield significant common ground. While the mediation committee has set a goal of reaching an agreement before Chuseok and both sides have agreed to engage in intensive bargaining, persistent differences raise concerns that an agreement will be difficult to achieve.

According to industry sources on September 9, the first post-mediation session between Samsung Biologics management and union was held the previous day at the Incheon Regional Labor Relations Commission. Both sides agreed to reexamine all 44 disputed clauses of the collective agreement from scratch on September 10 and 11, and to hold a second post-mediation session on September 15. The company promised to provide specific reasons for any clauses that are difficult to accept. Since mediation was suspended in March, negotiations have been held 27 times, but neither the collective agreement nor wage talks have made clear progress.

The mediation committee's plan is to expedite discussions with the aim of completing the wage and collective bargaining agreement before the upcoming Chuseok holiday. The management representatives requested that a timetable be set so that negotiations would conclude no later than September 20–22. If talks continue after the second mediation round on September 15, mediators and investigators are expected to participate directly in the bargaining sessions scheduled from September 16 to 18.

According to the minutes disclosed by the union, the company cited sluggish order intake, projected decreases in next year's production volume, declining exchange rates, and investment burdens as the reasons for the significant gap between labor and management demands. On the other hand, the union claims that, even after submitting a revised demand proposal in June, the company has failed to present any concrete counteroffers and insists that substantial revisions must be proposed during the intensive bargaining sessions.

The gap over wages and performance bonuses also remains significant. The union is demanding a 6.5% base salary increase for annual salary employees, a flat increase of 3 million won, and a 3% performance-based increment. In addition, the union wants 15% of annual pre-tax operating profit to be allocated as the performance bonus pool. The company, however, has reportedly proposed a 4.1% salary increase, a 2.1% performance-based increase, and a one-time payment of 6 million won.

After mediation was suspended in March, the union launched a partial strike in April, followed by the first-ever full strike in the company’s history between May 1 and May 5. Since then, the union has conducted a work-to-rule campaign by refusing overtime and holiday shifts.

Given that the union has previously staged a full strike, failure to find common ground during the upcoming intensive bargaining could reignite and escalate labor-management conflict, including the possibility of another strike. The union has stated that its next steps will depend on the outcome of the intensive bargaining. “If even two days of bargaining produce no progress, we will announce action plans and resolutions, including all possible means of protest, immediately after the second mediation session on September 15,” said the union. Samsung Biologics stated, “We will continue to participate in mediation in good faith, taking into account what was discussed in the post-mediation sessions.”

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