Samsung Biologics Labor-Management Conflict Escalates

INCHEON--(Korea Newswire)--The Samsung Biologics Labor Union, established in May 2023, represents approximately 60% of all employees. The union announced an official breakdown in wage negotiations, stating that despite multiple negotiation sessions—including two pre-mediation processes at the Incheon Regional Labor Relations Commission—the company's proposals regarding wages and working conditions remained insufficient.

Background of Negotiation Breakdown and Union’s Position

According to the union, the company’s unfair wage policy and manpower reduction strategies have negatively impacted working conditions. The union strongly criticized the company's aggressive cost-cutting measures, emphasizing these policies have led to a deterioration in production quality and internal labor conditions.

Serious Quality Crisis and Erosion of Internal Trust

Ahead of the FDA inspection scheduled for May, an external Mock Inspection conducted by consultants with prior FDA experience highlighted critical issues related to insufficient staffing.

Specifically, shortages in production and quality control personnel have significantly increased the risk of Data Integrity (DI) violations and human errors. Notably, instances of Data Integrity violations were directly reported to the labor union rather than through official internal channels, clearly indicating a rapid erosion of trust in company management among employees.

According to internal sources who requested anonymity, multiple global pharmaceutical clients are closely monitoring Samsung Biologics’ ongoing labor-management conflict and have explicitly expressed concerns regarding the prolonged situation, highlighting potential adverse effects on contract continuity and production timelines.

Company Claims “No Additional Resources,” Union Responds Firmly

Samsung Biologics has argued it lacks the financial capacity for additional wage increases due to ongoing investment activities, including M&A and factory expansion. While the company indicated it could provide additional compensation in the future under improved conditions, the union criticized this as an indefinite delay tactic, refusing to accept the company’s proposal as credible. The union emphasized that Samsung Biologics generates annual cash flows exceeding 1 trillion KRW and holds retained earnings exceeding 5 trillion KRW, making the company's refusal to increase wages by around 30 billion KRW unreasonable.

Union Plans Escalating Actions Including Strike

The union revealed it has applied for official mediation at the Incheon Regional Labor Relations Commission, preparing to secure lawful rights for collective actions. The union intends to organize large-scale demonstrations and rallies, ultimately considering a full-scale strike if necessary.

The union warned that continued uncooperative attitudes by management could seriously damage the company's global reputation, particularly regarding ESG compliance. The union strongly urged Samsung Biologics to fundamentally change its management approach and engage sincerely in negotiations to restore trust and ensure sustainable growth.

About Samsung Biologics Labor Union

Samsung Biologics Labor Union was established in May 2023 and represents approximately 60% of the total employees at Samsung Biologics, a leading global Contract Manufacturing Organization (CMO) in the biopharmaceutical industry. The union is dedicated to improving working conditions, ensuring fair wages, protecting employee rights, and promoting transparent and sustainable corporate governance aligned with global ESG standards.