Samsung Biologics faces labor strike uncertainty following court ruling

The labor union at Samsung Biologics is preparing for a second round of full-scale strikes following the failure of government-mediated negotiations regarding wage increases and performance bonuses. The dispute centers on a gap between the company’s offer of a 6.2% base pay increase and the union’s demand for a 9.5% increase, along with bonuses equivalent to 15% of operating profits.

However, a recent ruling by the Seoul High Court has complicated the union’s plans. The court expanded the scope of processes that must remain operational during industrial action from three to nine, including flask cultivation, bioreactor cultivation, recovery, and chromatography. This decision effectively restricts the union's ability to halt key production lines.

In response to the court's decision, the union has canceled its planned large-scale rally for October 21 and is reviewing its strike schedule, though it maintains that its intent to take collective action remains unchanged. Analysts warn that a prolonged three-week strike could significantly impact production schedules, revenue, and client trust in the company’s contract development and manufacturing organization (CDMO) services.