Samsung Biologics Faces First-Ever Strike Threat as Union Vote Tops 95%

Samsung Biologics is facing the threat of its first strike since it was founded in 2011.

The company’s union said March 29 that 95.52% of eligible voters backed strike action in a completed vote. Of 3,678 eligible voters, the union said, the approval rate reached 95.52%. The union has 3,689 members, about 75% of the company’s workforce.

Labor and management have held 13 rounds of wage and collective bargaining talks but have not narrowed their differences.

The union is seeking an average 14% pay raise, a 30 million won incentive payment per employee, a profit-sharing bonus equal to 20% of operating profit, and allocations of company shares over three years. It also wants the company to obtain the union’s prior consent when exercising key management and personnel authority.

Management has countered with a 6.2% raise, citing standards used at major group affiliates such as Samsung Electronics.

Market watchers have raised concerns that a strike could disrupt Samsung Biologics’ 15 trillion won plan to expand production capacity and affect the operating schedule for its contract development and manufacturing (CDMO) plants.

The union said it plans to hold informal talks after CEO John Rim returns to South Korea. Union Chairman Park Jae-seong said, “If the company brings an improved proposal during the remaining period, we are willing to talk at any time,” adding that “there is clearly room to compromise at an appropriate level” if management does so.

If the two sides fail to reach an agreement, the union said it plans to begin a strike on May 1.