Three rounds of post-mediation talks collapse; union to strike Oct. 26 for three weeks

Average salary tops 114 million won, yet union demands 15% raise and profit sharing

Partial production halt could force disposal of entire biopharmaceutical batches

The Samsung Biologics factory in Yeonsu-gu, Incheon. [Yonhap]
The Samsung Biologics factory in Yeonsu-gu, Incheon. [Yonhap]

The Samsung Biologics union has resolved to launch a second general strike lasting three weeks starting Oct. 26, holding firm on demands including a 15 percent base salary increase and a 15 percent share of operating profit.

Three rounds of post-mediation talks among labor, management and government all ended in failure, leaving the prospect of a full production shutdown looming rather than any negotiated settlement.

Given the nature of biopharmaceutical manufacturing — where even a partial halt to one process can force the disposal of entire large-scale batches — industry observers warn that losses could run into the hundreds of billions of won. Management said the planned action would deal "a fatal blow to the company's long-term competitiveness."

The Samsung Biologics mutual-benefit union announced Friday that it had issued "Combat Directive No. 2" to all members, confirming the second general strike would begin Oct. 26 and run for three weeks.

Labor and management held a third post-mediation session at the Incheon Regional Labor Relations Commission on Thursday but failed to reach a final agreement. With both sides concluding that further talks were unlikely to narrow the gap, negotiations collapsed without even scheduling a fourth session.

Before the strike begins, the union plans to sharply escalate workplace compliance actions to pressure management on all fronts. Under the directive, members will work only their contractually required monthly hours and refuse all voluntary overtime, after-hours responses, holiday work, emergency standby and on-call duties. They will strictly follow standard operating procedures, good manufacturing practice guidelines and safety regulations, and transfer all post-hours approvals, customer inquiries and urgent tasks to department heads. Members will wear strike vests, and a dedicated strike website will be set up to accept participation sign-ups. The directive prohibits deliberate equipment shutdowns or damage, deletion or falsification of records, and physical interference with operations.

Management expressed strong regret at the strike announcement. "We have engaged sincerely and in good faith through dozens of rounds of bargaining as well as mediation and post-mediation procedures at the labor commission in order to reach a smooth conclusion to the wage and collective bargaining negotiations," the company said. "We deeply regret that an agreement has not been reached, and we express serious concern over the union's announcement of a second general strike."

Management was particularly pointed in calling the union's demands excessive. "The union's demands — a 15 percent base salary increase, a 15 percent distribution of operating profit as bonuses, and agenda items related to personnel and management rights — are at a level the company cannot accept," it said.

The company added that the average salary per employee at Samsung Biologics stands at 114 million won ($83,800), the highest among domestic pharmaceutical and biotech companies, and said that would remain the case even after applying its proposed 6.2 percent wage increase for 2026.

On the collective agreement revision, the company said it had "made every effort to broadly reflect the union's demands," including accepting 33 newly proposed clauses on top of revisions to the existing 41 clauses agreed in 2024, for a total expansion to 74 clauses.

The industry is watching with deep concern over the potential fallout if the second strike goes ahead. Biopharmaceutical manufacturing relies on highly continuous processes of cell culture and purification. Even a partial stoppage at one stage of the production line can trigger microbial contamination or quality failures that require the disposal of entire large-scale batches.

Samsung Biologics already suffered roughly 150 billion won in sales losses and production disruptions during the union's first-ever full strike, a five-day walkout from May 1 to May 5. If the threatened three-week strike — more than four times as long — goes ahead, losses could swell into the hundreds of billions of won, dealing a severe blow to the company and its entire workforce.

Delivery delays and quality issues also pose a serious risk to the trust Samsung Biologics has built with global pharmaceutical majors, as the company approaches a cumulative order backlog of $22 billion since its founding.

Management said it would not abandon dialogue to prevent the dispute from becoming a prolonged crisis. "We remain firmly committed to concluding these wage and collective bargaining negotiations through dialogue," the company said. "We hope the union will make a reasonable decision, and we will keep communication channels open and continue working toward a constructive agreement."

With three weeks remaining before the Oct. 26 strike deadline, the industry is watching closely to see whether labor and management can reach a last-minute compromise.


silverpaper@heraldcorp.com