Samsung Biologics faces first-ever full strike, halting factory operations

In a historic move, the Samsung Biologics Sangsaeng Labor Union has launched its first-ever comprehensive strike, bringing factory operations to a standstill. This unprecedented action stems from a prolonged dispute over wages and collective bargaining agreements, with 13 rounds of negotiations failing to yield a resolution between the labor union and the company management.

The strike, which began on May 1st, International Workers' Day, is planned to last for five days. Approximately 2,500 out of the union's 4,000 members are participating. However, a court ruling partially granted the company's request to restrict industrial action, meaning around 400 workers involved in crucial final processes, such as raw material filling and buffer exchange, are excluded from the strike.

This industrial action poses a significant threat to Samsung Biologics, with potential losses estimated to reach as high as 640 billion won (approximately $470 million USD). Beyond the financial implications, the strike also raises concerns about the damage to South Korea's reputation in the global contract manufacturing organization (CMO) market, where the company plays a pivotal role.

In a last-ditch effort to avert the strike, Samsung Biologics CEO John Rim sent an email to employees the night before, appealing for the strike's cancellation and acknowledging communication shortcomings. Despite these efforts, the union proceeded with the strike, underscoring the deep-seated nature of the labor dispute and the union's determination to achieve its demands.