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 Sunday that 95.52% of eligible voters backed strike action in a ballot that closed that day. Of 3,678 eligible voters, the union said, the overwhelming majority voted in favor. 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 failed to narrow their differences.

The union is seeking an average 14% wage increase, a 30 million won incentive payment per person, a profit-sharing bonus equal to 20% of operating profit, and an allocation 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% proposal, saying it aligns with standards 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 operating schedules at 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 the union is willing to talk at any time if the company brings an improved proposal, adding there is room to compromise at an appropriate level.

If the sides fail to reach an agreement, the union said it plans to launch an all-out strike on May 1.