"We Could Lose an Entire Quarter's Work"... Samsung Biologics Worries Over Indefinite Compliance Protest [Companies on Alert Over Strikes]

Concerns are mounting over the earnings outlook for Samsung Biologics, a leading domestic Contract Development and Manufacturing Organization (CDMO), as the union's strike enters a prolonged phase.
If production disruptions become a reality, losses could reach hundreds of billions of won, effectively wiping out the company's operating profit for the first quarter.
According to industry sources on the 5th, the labor union at Samsung Biologics launched a full strike on the 1st, International Workers' Day, and has continued the action for five days through today. About 2,800 of the union's roughly 4,000 members are said to have joined the strike. The action is being carried out without separate collective demonstrations, with members taking annual leave on weekdays and refusing weekend work.
The union is demanding a 30 million won incentive payment per worker, an average wage increase of 21%, a performance bonus equal to 20% of operating profit, and fair personnel standards. However, it has failed to narrow its differences with management. The union plans to return to the workplace on the 6th but begin an indefinite compliance protest, refusing overtime and weekend work. If the conflict drags on, the damage is expected to snowball. Because biopharmaceutical production is highly sensitive to schedule disruptions, even a small delay can lead to the loss of an entire batch. Some estimates put the damage from the strike at as much as 640 billion won, far exceeding Samsung Biologics' first-quarter operating profit of 580.7 billion won.
Additional negotiations will continue this week. A one-on-one meeting between the chief negotiators from labor and management is scheduled for the 6th, and a tripartite council meeting involving the Ministry of Employment and Labor (MOEL) will be held on the 8th. Management said, "Since we have agreed to hold two more rounds of talks this week, we will approach the negotiations in good faith."
However, negotiations are expected to be difficult because the core issue is not simply wages. The union is reportedly demanding prior consent on key management matters such as new hiring, personnel evaluations, and mergers and acquisitions (M&A), raising concerns over interference in management rights.
Industry observers say that if these demands are realized, they would inevitably weaken the company's competitiveness.
wonder@fnnews.com Jeong Sang-hui Reporter