"Demand Union Consent for Hiring and M&A Too"... Labor-Management Tensions Escalate at Samsung Biologics

[The Financial News] Labor-management tensions are escalating at Samsung Biologics. After the labor union rejected the company’s wage increase proposal, it has also demanded involvement in personnel and broader management decisions, pushing negotiations into deadlock. The situation has worsened as a surprise strike, launched earlier than announced, has disrupted production and expanded the damage.
According to the industry on the 3rd, Samsung Biologics and the union held 13 rounds of talks and two meetings with the CEO before mediation was suspended on March 23, seeking common ground. The union then declared a full strike starting on the 1st, but in practice it had already begun a preemptive strike in some processes on April 28. This disrupted the supply of raw and auxiliary materials essential for pharmaceutical production, creating a chain reaction across the entire production process. The company launched an emergency response, but some production stoppages were unavoidable, and losses are estimated at about 150 billion won.
Concerns are growing as the strike is also believed to have affected production of medicines directly tied to patients’ lives, including antitumor agents and treatments for human immunodeficiency virus (HIV). Industry observers say that, given the nature of the Contract Development and Manufacturing Organization (CDMO) business, production disruptions could directly undermine client trust and lead to long-term damage.
The core of the dispute lies in wages and the union’s proposed collective bargaining terms. The company offered a 6.2% wage increase and a one-time payment of 6 million won, taking into account its ability to pay and future investment needs. The union, however, is demanding an average 14% raise and a 30 million won incentive payment per worker. The issue goes beyond wages, as the union’s proposed collective agreement reportedly includes clauses requiring prior consent on key management matters such as new hiring, performance evaluations and mergers and acquisitions (M&A).
Analysts say this is effectively equivalent to the union running the company. Experts in personnel and labor relations noted that "hiring, technology adoption and investment decisions are strategic judgments directly tied to a company’s survival," adding that "if the union restricts these, it could weaken corporate competitiveness."
Controversy has also emerged over the union leadership’s conduct. It was reported that the union chairman was away on an overseas trip when the full strike was brought forward, drawing criticism even from within the union. As concerns mount over production disruptions and a decline in outside trust, critics say the leadership has shown a lack of responsibility.
Government mediation has also failed to produce results. The union chairman did not attend a labor-management-government meeting held on April 30 and hosted by the Jungbu Regional Employment and Labor Office, and the union reportedly demanded that all of the company’s bargaining representatives be replaced. Observers say this is a condition that makes progress in negotiations difficult.
Experts say the solution lies in adjusting the union’s demands and returning to the negotiating table. They argue that a realistic approach is needed to balance the protection of workers’ rights with the company’s sustainability. Industry watchers also warn that if the dispute drags on, it could burden not only the company but the broader domestic bio industry.
Samsung Biologics said, "Our participation in government mediation during the strike reflects our willingness to resolve this through dialogue," adding that "the union should stop making unrealistic demands and coercive strike actions, and return to the negotiating table with a responsible attitude." The company also stressed that it would "faithfully take part in the mediation scheduled for the 4th."

wonder@fnnews.com Jung Sang-hee Reporter