Union Demands 14% Raise, Authorizes First-Ever Strike
The union at Samsung Biologics has authorized the first potential strike in the company's history, following a vote on March 29. The move escalates a deadlock in pay negotiations, with the union rejecting management's offer of a 6.2% total wage increase and a 200% incentive bonus. Instead, the union is demanding a 14% average wage increase, a KRW 30 million incentive for each employee, and company stock allocations.
During negotiations, the union controversially argued that paying employees their demands would be cheaper for the company than enduring the financial losses from a strike, comparing the payment to a "fire insurance" premium. This position has been criticized by industry observers as a coercive tactic that falls outside the bounds of normal collective bargaining.
Strike Risk Threatens ₩15 Trillion Investment Amid Capacity War
The labor dispute arrives as Samsung Biologics is engaged in a high-stakes battle to maintain its global dominance. While it currently operates the world's largest production capacity at 785,000 liters, rivals are aggressively expanding, with Japan's Fujifilm targeting 700,000 liters by 2028. To defend its position, Samsung Biologics has planned a massive KRW 15 trillion investment in future capacity.
Industry analysts express concern that conceding to the union's demands could divert capital from these crucial investments, eroding the company's long-term competitiveness. The dispute highlights a broader trend within South Korea's key industries, as Samsung Electronics also faces strike threats. For Samsung Biologics, which exports 97% of its sales, any production disruption could damage its significant contribution to the nation's $27.9 billion biohealth export market.
