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

The Samsung Biologics labor union will end its five-day, companywide strike that began May 1 and return to worksites on May 6, shifting to an open-ended work-to-rule campaign. The union is also said to be reviewing whether to extend the strike itself, raising the possibility of a prolonged dispute if a deal is not reached soon.

Industry officials said Tuesday 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 May 8 tripartite meeting involving the Labor Ministry. With the two sides far apart, however, many in the industry doubt the talks will produce an agreement, and warn production disruptions could translate into losses of several hundred billion won.

The sides held their first tripartite meeting at 10:15 a.m. Monday for about two hours but confirmed only their differences. They later met separately with the Labor Ministry, but did not set additional agenda items or a concrete direction, according to the report.

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

The union launched the company’s first full 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, losses from production disruptions are projected at about 640 billion won, the report said.

Ahead of the planned May 1 walkout, the union also halted work without notice 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 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 cancer drugs, medicines related to human immunodeficiency virus (HIV), and treatments for atopic dermatitis, the report said. An industry official said biologic drugs can require an entire batch to be discarded if even one step is delayed, amplifying losses.

The report said a major sticking point is the union’s demand that the collective agreement require prior union consent on key management matters, including hiring, performance evaluations and mergers and acquisitions. The company has maintained it cannot accept the proposal, saying it would infringe on management and personnel authority.

A business community official was quoted as saying it is questionable whether management decisions for future growth could be made properly if prior union consent were required even for M&A and major staffing decisions, and warned it could ultimately leave the company behind in competition.

The union plans to return to worksites 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, closer scrutiny by regulators and customers switching to alternatives. The official added that in the global contract development and manufacturing organization, or CDMO, industry, latecomers are catching up quickly and delayed decision-making could cost orders. The official also said the strike risk, emerging amid a global environment of strengthening U.S. protectionism, could end up benefiting competitors.