Samsung Biologics union to shift from strike to open-ended work-to-rule campaign

The Samsung Biologics labor union is ending a five-day, full-scale strike that began May 1 and will return to worksites on May 6, shifting to an open-ended work-to-rule campaign. The union is also said to be weighing an extension of the strike, raising the possibility of a prolonged dispute if an agreement is not reached soon.

Industry officials said May 5 that labor and management plan to resume talks with a one-on-one meeting on May 6 between a human resources executive and the union chair, followed by a tripartite meeting on May 8 with the Labor Ministry participating. With the sides far apart, however, many in the industry say a deal remains uncertain, fueling concerns that production disruptions and losses totaling several hundred billion won could become reality.

The two sides held their first tripartite meeting at 10:15 a.m. the previous day for about two hours but only confirmed their differences. They later met separately with the Labor Ministry, but did not produce additional agenda items or a concrete path forward.

In a statement, the union said management asked both sides to halt all forms of labor action and to mutually withdraw legal disputes, including allegations of unfair labor practices. The union said it refused, arguing it would only lower the level of action without gaining anything in return.

The union launched the company’s first full-scale strike since Samsung Biologics was founded in 2011, starting on Labor Day, May 1. Estimated losses so far are about 150 billion won to 300 billion won. If the stoppage continues, projected losses from production disruptions could reach about 640 billion won, according to estimates cited in the industry.

Ahead of the planned May 1 strike, the union also abruptly halted work in some processes starting April 28. That stoppage reportedly froze a key aliquoting process, triggering knock-on disruptions across production lines and disrupting process flow.

The company has reportedly selected which products to keep producing and discarded some products that were deemed likely to deteriorate. As a result, production has already been disrupted for products including cancer drugs, medicines related to human immunodeficiency virus, or HIV, and treatments for atopic dermatitis, according to the report. An industry official said biologic drugs can require an entire batch to be discarded if even one step is delayed, amplifying losses.

A major sticking point is the union’s demand that the collective bargaining agreement require prior union consent for key management matters such as hiring, performance evaluations and mergers and acquisitions. The company has maintained that such provisions are difficult to accept because they directly affect management and personnel authority, viewing them as an infringement on management rights.

A business community official warned that requiring prior union consent for M&A or major staffing decisions could undermine management’s ability to make decisions for future growth and could ultimately leave the company less competitive.

The union plans to return to work starting the afternoon of May 6 but begin an open-ended work-to-rule campaign by refusing overtime and holiday work. It has also signaled it could launch a second strike if no agreement is reached.

An industry official said the risks extend beyond direct losses from halted production, citing potential penalties for contract nonperformance, heightened scrutiny from regulators and customers switching to alternatives. The official added that in the global contract development and manufacturing organization, or CDMO, market, fast-following competitors are closing in, and delayed decision-making could cost orders. The official also said the strike risk, emerging amid an international environment of strengthening U.S. protectionism, could increase the chance of competitors benefiting at Samsung Biologics’ expense.