CEO John Rim meets employees as wage talks reach deadline
Samsung Biologics Plant 4 (Photo provided by Samsung Biologics)
With a full-scale strike by its workers just a day away, Samsung Biologics CEO John Rim has initiated direct communication with employees to listen to their opinions.
According to the Samsung Biologics Labor Union (Sangseng Branch) on April 30, a meeting with the company is scheduled for 3 p.m. today, mediated by the Jungbu Regional Employment and Labor Office. The meeting was arranged as the union has announced a full-scale strike from May 1 to 5.
The union, citing the company’s rapid growth in performance in recent years, is demanding: ▲ a wage increase of approximately 14%; ▲ distribution of performance-based bonuses equivalent to 20% of the operating profit; ▲ an incentive payment of 30 million won per person; and ▲ an allocation of company shares for three years. In response, the company proposed: ▲ a 6.2% wage increase; ▲ an incentive payment of 200% of the bonus base; ▲ an increase in shift allowances; and ▲ special rewards, but these were not accepted.
On the same day, CEO John Rim will hold a town hall meeting with employees to communicate. With growing concerns about the strike, he is expected to personally explain the company’s current issues to the staff. However, it is also pointed out that finding a consensus will be difficult as the union leader is staying abroad on vacation until today.
If the labor and management negotiations fail today, Samsung Biologics will enter its first-ever full-scale strike since its founding. The union already began a partial strike on the 28th, affecting the task of subdividing materials necessary for biopharmaceutical cultivation processes. Even if a full-scale strike begins, the court has partially granted the company’s preliminary injunction to ban industrial action, restricting strikes on three key processes: Ultrafiltration/Diafiltration (UFDF), Drug Substance (DS) Filling, and buffer preparation and supply.
The number of Samsung Biologics union members is 3,689, which is 75% of the total employees. The union estimates that about 2,500 of them will participate in the strike.
Industry insiders point to disruptions in the production process as the biggest concern if a full-scale strike materializes. Biopharmaceutical production involves organically linked processes such as cell cultivation, purification, and filling. If some processes are halted or delayed, it could lead not only to production delays but also to batch disposal, quality deviations, and delivery delays. Particularly in the Contract Development and Manufacturing Organization (CDMO) business, production stability is directly linked to competitiveness, as products must be manufactured according to clients’ schedules and quality standards.
Along with production disruptions, concerns are also being raised that the possibility of a strike could become a burden for global clients. Samsung Biologics counts 17 of the top 20 global pharmaceutical companies as its clients. From the clients’ perspective, supply chain stability and predictability are crucial.
The CDMO industry is structured around long-term contracts based on the trust once secured with a client. Even if there are no major disruptions to factory operations in the short term, repeated labor-management conflicts or a highlighted strike risk could compel clients to reconsider production schedule management, emergency response systems, and quality maintenance capabilities, which could in turn lead to a weakening of competitiveness in securing orders.
Internal losses are also inevitable. The company estimates that if the union proceeds with a full-scale strike, the direct financial loss from disruptions to the operation of production facilities will be approximately 640 billion won.
Jung Suk-yee
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