Court Limits Parts of Samsung Biologics Strike; Union Says Walkout Still Set for Next Month

A South Korean court has partially blocked a planned full-scale strike by the Samsung Biologics union, limiting walkouts only in certain final-stage processes tied to preventing drug spoilage. The union said it still plans to begin a strike next month.

According to the legal community on April 23, the Incheon District Court’s Civil Division 21, led by Presiding Judge Yoo Aram, partially granted Samsung Biologics’ request for an injunction against the Samsung Biologics Sangsaeng branch of the Samsung Group Super-Enterprise Labor Union.

In its decision, the court said the union must not instruct workers to halt, or distribute guidelines to halt, parts of “work to prevent deterioration or decay of thawed cell lines” during the labor action. It also said the union must not obstruct employees from performing that work “by using force or by threatening harm.”

The court specified the restricted tasks as concentration and buffer exchange, filling of bulk drug substance, and buffer production and supply. The panel described them as “final-stage work that adjusts already-produced material into a form suitable for maintenance and storage,” and said failure to carry them out on time would make it highly likely products would have to be discarded.

The Samsung Biologics union said it will proceed with its planned strike starting May 1, because walkouts in early production processes such as cell culture were effectively allowed.

Samsung Biologics said it “immediately filed an appeal” over the parts not granted. However, because an injunction generally remains in effect even after an appeal is filed, the strike is still widely expected to go ahead as planned.

Labor and management have held 13 rounds of talks through last month since their first meeting in December, but have not reached an agreement.

The union is seeking an average 14% wage increase, a 30 million won incentive per person, a bonus distribution equal to 20% of operating profit, and an allocation of company shares over three years. It has also proposed requiring the union’s prior consent when the company exercises key management and personnel authority.

Management has maintained a wage increase rate of 6.2%, among other terms. If no deal is reached, Samsung Biologics would face its first strike since the company was founded in 2011.

Industry observers say a strike could lead to major losses from production disruptions. If production schedules are affected starting next month, they say penalties for contract violations with global clients and damage to trust would be difficult to avoid.