The union at fast-growing South Korean CDMO Samsung Biologics launched a planned general strike on Friday, intensifying a dispute that has been brewing over the past few months.
The five-day strike is the first since the company was founded in 2011, and the union is demanding increases in base pay and performance-based wages, The Korea Herald reported on May 1.
“At this time, Samsung Biologics’ priority is to maintain supply stability and minimize the impact,” a company spokesperson said in an emailed statement. “To reduce disruption, the company is deploying experienced personnel and those who have recently completed training to backfill key operational areas.”
“We also maintain active communication with our customers to manage potential impacts,” the spokesperson continued. “We are committed to ongoing dialogue with the trade unions to achieve an amicable resolution as soon as possible while safeguarding business continuity.”
The action follows an April 22 union rally outside Samsung Bio’s Bio Campus 1 that drew 2,200 participants in an hour during off-duty hours. At the time, union president Park Jae-sung said the union was fighting to “change the company’s decision-making structure.”
“Even now, we have not given up the opportunity for dialogue,” Jason said in a statement at the time. “However, if management continues to refuse meaningful consultation, we will demonstrate our resolve through planned strike action.”
According to the Korea Herald, the company and labor union held 13 meetings between December and March.
More than 95% of the union voted in favor of a strike in March, and the union said it plans to launch “phased strike action” from an offline rally on April 22 to a general strike on May 1 to prevent company management from “putting forward a credible autonomous proposal.”
The union representing about 75% of Samsung Bio’s employees stressed that despite the company’s growth, wage conditions are lower than last year. The union blames the rift on a “lack of independent bargaining authority” with CDMO’s larger parent company, Samsung Electronics.
Samsung Bio last month reported first-quarter sales of 1.26 trillion Korean won ($851.9 million), a significant increase of 257.6 billion Korean won ($174.4 million) from the same period last year. The company said the momentum was driven by “full utilization” of its four manufacturing plants, with cumulative contract value of $21.4 billion in the quarter, reflecting “continued demand from customers around the world.”
CDMO is committed to expanding its global footprint, recently completing the acquisition of the former GSK manufacturing site in Rockville, Maryland. The spot has a total drug substance capacity of 60,000 liters and can support both clinical stage and commercial drug production.
