Company alleges union member obstructs operations after strike losses
Samsung Biologics Plant 4 in Songdo-dong, Yeonsu-gu, Incheon. (Photo=Samsung Biologics)
Amid the Samsung Biologics union’s entry into an indefinite work-to-rule protest, the company has filed a criminal complaint against union members for alleged obstruction of business during the strike period.
According to the Samsung Biologics Coexistence Branch of the Cross-Company Union of Samsung Group on May 6, the union ended its full-scale strike, which ran from the 1st to the 5th, and will begin a work-to-rule protest from this day. The work-to-rule protest will be carried out by refusing overtime and holiday work.
The company estimates that it has already incurred losses of 150 billion won due to the union’s full-scale strike. Although it responded with emergency measures by maximizing available personnel, it unavoidably had to halt the production of some batches. This included products that directly affect patient lives, such as cancer drugs and Human Immunodeficiency Virus (HIV) treatments.
The biopharmaceutical production process is structured with multiple continuous stages such as culturing, purification, and filling. If the work-to-rule protest continues, it could become a variable affecting not just short-term losses but also the annual performance forecast.
Samsung Biologics’ main business is Contract Development and Manufacturing Organization (CDMO), producing biopharmaceuticals for major global pharmaceutical companies, making production stability and delivery reliability its key competitive advantages. Industry sources view that if this conflict becomes prolonged, it could also pose a burden on securing new orders in the future.
The company has presented an annual revenue guidance of 15-20% growth for this year. Last year, it achieved 4.557 trillion won in revenue and 2.692 trillion won in operating profit, renewing its record-high performance each year. However, there are observations that the performance forecast will be lowered if the union’s collective action continues.
Labor and management held a closed-door meeting on the 4th mediated by the Jungbu Regional Employment and Labor Office, but failed to reach an agreement.
On this day, the company filed a complaint with the police against a union member on charges of obstruction of business. The reason cited was that the member, despite not being a person in charge of Quality, entered the production site and monitored the process during the recent strike. The company viewed that an unauthorized person conducting arbitrary activities in a manufacturing site, which must be strictly controlled according to Good Manufacturing Practice (GMP) and Standard Operating Procedures (SOP), is an act that undermines the safety management system.
The union, on the other hand, claims that the union member in question entered the site because they had entry authorization. Their position is that the entry was for the purpose of management and supervision to see if the site was operating well, and that the member did not encourage forced departures from work or similar actions.
Negotiations between the two sides have not progressed. The union is demanding ▲ an average wage increase of 14%, ▲ distribution of performance bonuses equivalent to 20% of operating profit, ▲ a payment of 30 million won per person in encouragement bonuses, ▲ allocation of company shares for three years, and ▲ an agreement with the union on the operation of HR systems, including promotions and disciplinary actions. The company has proposed ▲ a 6.2% wage increase, ▲ payment of an encouragement bonus equivalent to 200% of the base bonus, and ▲ an increase in shift allowances.
A Samsung Biologics official stated, “The union’s demands, such as for a wage hike and settlement payments, have been realistically difficult to accept when considering the company’s current ability to pay and the need to secure financial resources for future growth, which has caused difficulties in negotiations.”
Jung Suk-yee
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