The Samsung Biologics labor union's full-scale strike entered its fifth day on Monday. With the union vowing to continue work-to-rule action by refusing overtime and holiday shifts from Tuesday even after the full-scale walkout ends, attention is focused on whether two rounds of talks scheduled this week can produce common ground.
The Samsung Biologics Sangsaeng branch of the Samsung Group Supra-Corporate Labor Union began its strike on May 1, Labor Day, and continued the full-scale walkout through Monday. The strike took the form of individual union members taking annual leave on weekdays and refusing to work on holidays. About 2,800 of the union's 4,000 members reportedly joined the action.
Labor and management sat down at the negotiating table on Sunday under mediation by the Central Regional Employment and Labor Office but only confirmed their differences. The union demanded a 30 million won incentive payment per person, an average 14% hike in base pay, and distribution of 20% of operating profit as performance bonuses, but failed to reach an agreement with management.
The union plans to return to worksites on Tuesday after the full-scale strike and continue indefinite work-to-rule action by refusing overtime and holiday shifts. Management earlier proposed that the union suspend its industrial action and that both sides withdraw their mutual lawsuits, but the offer was rejected. The union said, "The meeting ended without any specific proposals or direction being set, with only the next meeting scheduled."
Management had initially projected losses of roughly 640 billion won if the strike continued through Monday. That exceeds the company's first-quarter operating profit of 580.5 billion won. A partial strike involving about 60 workers from April 28 to 30 had already halted production of some products, including cancer drugs and HIV treatments, with management estimating losses from that disruption at 150 billion won.
With both sides set to resume talks on Tuesday and Thursday, however, this week is expected to be a watershed for determining whether the strike drags on. A one-on-one meeting between chief negotiators from both sides will take place Tuesday, followed by a tripartite labor-management-government meeting including the Ministry of Employment and Labor on Thursday. Some observers suggest the two sides could find common ground this week, as the union proposed establishing a mutual-prosperity fund during Sunday's talks. Under the proposal, incentive payments would be raised somewhat, with part of the funds set aside to contribute to the local community and support subcontractors. Since the union has put the fund forward as a justification for ending the strike, analysts expect it to take a more flexible stance in negotiations with management. Management said, "With two more rounds of talks set for this week alone, we will engage in the dialogue in good faith."
