Samsung Biologics union declares intent to strike after court partially dismisses injunction request

Samsung Biologics' factory in Songdo, Incheon [SAMSUNG BIOLOGICS]

 
The labor union of Samsung Biologics will proceed with a five-day strike starting Friday after a court only partially approved the company's request for an injunction.
 
The pharmaceutical and its labor union stand divided over the issue of performance-based incentive payouts. Union members account for about 75 percent of the workforce, or 3,689 employees.
 

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Labor and management have held 13 rounds of negotiations since December of last year, but have failed to reach a deal.
 
The union is demanding a 14.3 percent increase in base pay and an additional 3.5 million won ($2,380), along with bonuses equal to 20 percent of operating profit, in addition to removing the current cap of 50 percent of annual salary.
 
Samsung Biologics has offered a 6.2 percent wage increase, a bonus equal to 200 percent of base pay and performance incentives tied to 10 percent of operating profit or 20 percent of economic value added, leaving the two sides far apart and prompting the union to declare intent to strike, while the company has said it will deploy 100 new hires to fill gaps while also appealing the ruling.
 
The plan to launch the protest came after a ruling by the Incheon District Court, which only partially accepted the company’s request to block the strike.
 

A digital-generated image of Samsung Biologics' Plant 5 in Songdo, Incheon [SAMSUNG BIOLOGICS]

 
Biopharmaceutical production involves a continuous process in which living cells are thawed and then go through cell culture, purification and filling stages. The court ruled that work must continue in the final stage of preservation and storage, meaning strikes are not allowed at that stage, while the earlier stages, including cell culture and purification, can be subject to collective action.
 
“The court ruling only recognized the need for work in certain processes," Park Jae-seong, head of the union, said. "We see no major issues with proceeding with the strike and we plan to move forward as scheduled."
 
Samsung Biologics immediately appealed the court decision.
 
“[The court] needs to consider that in biopharmaceutical production, cultured cells can be contaminated or disposed of if all processes are not carried out consecutively," said a company source.
 
Biopharmaceuticals are made using living cells and must meet strict quality standards because they are administered directly to patients. Cell lines and antibodies used in biopharmaceuticals are highly sensitive to environmental changes, which can cause mutations, reduce effectiveness or lead to unexpected side effects.
 

Samsung Biologics' office in Incheon [YONHAP]

 
Regulators, including the U.S. Food and Drug Administration, treat products as compromised if procedures are not followed, even when no immediate defects appear.  
 
To reduce disruption, Samsung Biologics plans to deploy about 100 newly hired employees who recently completed training to assist with quality control and safety-related tasks.
 
“It is contradictory for the company to try to block the strike by arguing that highly skilled workers are required while deploying new employees to the field,” said the union.
 
A company spokesperson responded that the new hires will only be assigned to "support tasks such as material transport rather than core production processes."
 
"This is the best we can do to minimize supply chain risks," the company said.
 

Samsung Electronics Chairman Lee Jae-yong examines Samsung Biologics' fourth plant in Songdo, Incehon, on Oct. 11, 2022. [SAMSUNG ELECTRONICS]

 
Samsung Biologics is the world’s largest contract development and manufacturing organization for biopharmaceuticals, claiming 17 of the world’s top 20 pharmaceutical companies as clients.
 
“Global pharmaceutical companies prioritize stable supply when outsourcing production," said an industry source. "If Samsung Biologics fails to meet delivery deadlines due to a strike, it could negatively affect the company's contract competitiveness in the future.”


This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY KIM KYUNG-MI [lee.jiwon10@joongang.co.kr]