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Samsung Biologics strike escalates as union demands role in hiring, personnel evaluations, M&As

Published: 03 May. 2026, 16:00 Updated: 03 May. 2026, 16:48

Union flags are seen hung up near the entrance of a Samsung Biologics plant in Yeonsu District, Incheon, on April 30. [YONHAP]

Tensions are escalating at Samsung Biologics as striking workers are upping the ante beyond mere wage negotiations, demanding a union role in key corporate decisions, including hiring, personnel evaluations and mergers and acquisitions (M&As).

The Samsung Biologics branch of the Samsung umbrella union has been on a full-scale strike since Friday, Labor Day, marking the third consecutive day of industrial action as of Sunday. This is the first strike since the company was founded in 2011. The union plans to continue the strike through Tuesday. About 2,800 out of 4,000 union members are believed to be participating.

The union had already begun partial strikes in some processes starting Tuesday, earlier than initially announced. The strike has been carried out through the use of annual leave and refusal to work on holidays. This has halted aliquoting processes and disrupted production, effectively triggering a chain reaction across the entire production line.

The disruptions are reported to have affected key biopharmaceutical products, including anticancer drugs, treatments for human immunodeficiency virus and atopic dermatitis.

The company estimates that losses from the partial strike alone amount to about 150 billion won ($102 million). If the full-scale strike continues, losses could exceed 600 billion won. There are also concerns that halting production could undermine client trust, given the nature of contract manufacturing organization (CMO) businesses.

Wages, HR and M&As on the table

The conflict initially began with wage negotiations. The company proposed a 6.2 percent increase in base pay and a one-time payment of 6 million won, but the union rejected the offer and is demanding a double-digit wage increase along with additional incentives.

But since then, the union has also included in its collective bargaining demands a requirement for prior union consent on essential matters such as new hiring, personnel evaluations and M&As, a move that business circles have raised concerns about potentially infringing on management rights.

Should the standoff continue, production disruptions may not remain a short-term loss. Since the CMO business is based on long-term contracts, process stability and delivery reliability are considered key competitive strengths.

“In biopharmaceutical production, once a process is disrupted, it can have a cascading effect on the entire schedule,” an industry source said. “From a client’s perspective, supply stability is the top priority.”

A Samsung Biologics plant is seen in Yeonsu District, Incheon, on May 1, on the first day of the company union's first general strike. [YONHAP]

A bigger blow to the company

As global pharmaceutical companies are diversifying their production partners, prolonged strikes could also affect mid- to long-term orders. Major CMO firms emphasize stable production capacity and the ability to manage labor risks as key competitive advantages.

At the same time, the union faces criticism over its leadership after the union chief was reportedly abroad during the strike.

Government mediation efforts are also facing difficulties. A labor-management meeting hosted by the Ministry of Employment and Labor’s regional office last Thursday failed to make progress after key union figures did not attend.

Labor and management are scheduled to return to the negotiating table on Monday under the mediation of the ministry’s regional office, but it remains uncertain whether an agreement will be reached.

More to come?

The union has defined the current strike as a “first general strike,” raising the possibility of further industrial action if no agreement is reached. The union said it is also considering additional strikes.

Experts note that the conflict has expanded beyond wage issues into a broader debate over the boundaries of roles and responsibilities between labor and management.

“Decisions on hiring and investment are core functions of a company,” a labor relations expert said. “It is important to reach an agreement on the boundaries of roles between labor and management.”

Samsung Biologics stays focused on resolving the issue through dialogue. The company has agreed to resume talks on Monday under the mediation of the Jungbu regional employment and labor office, according to a company source.

“We are participating in the Labor Ministry’s mediation in good faith,” a Samsung Biologics source said. “We hope the union will return to the negotiating table and seek a reasonable solution.”

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY PARK YOUNG-WOO [[email protected]]