Samsung Biologics (207940.KS) and its labor union failed to find common ground in their fourth day of the company's first-ever full-scale strike, despite returning to the negotiating table under government mediation. The two sides had previously confirmed sharp differences at a labor-management-government meeting on Oct. 30, one day before the full-scale walkout began.
According to industry sources on Thursday, a meeting between Samsung Biologics and the union, mediated by the Ministry of Employment and Labor's Central Regional Labor Office, ended without a deal at the company's Songdo site at 10 a.m. that day. "Both sides engaged in the dialogue in good faith, but we were unable to reach a specific agreement," a Samsung Biologics official said. "Since we have agreed to hold two more rounds of talks this week, we will continue to negotiate sincerely."
Ahead of the meeting, the union stated in a released document that "today's session cannot be the final negotiation," adding, "This situation cannot be resolved unless management presents a substantive revised proposal and a responsible figure with decision-making authority." The union maintained its hardline stance even after the meeting ended. "Management is asking us to mutually withdraw all industrial actions and unfair labor practices empty-handed," the union said. "We rejected it because it only benefits the company while the union gains nothing and merely lowers the intensity of our dispute."
As a result, observers say it will not be easy for the two sides to reach common ground even with additional negotiations. Positions on wage increases and performance bonuses remain far apart. The union is demanding an average 14.3 percent increase in base pay and a lump-sum payment of 3.5 million won. It is also seeking 30 million won per person in incentive bonuses as part of the negotiation package.
The labor dispute is also expanding into controversy over "infringement on management rights." The union's collective bargaining proposal reportedly includes clauses requiring prior union consent on key management issues such as new hiring, personnel evaluations, and mergers and acquisitions (M&A). Specifically, the union is said to have demanded to be notified of all plans and outcomes regarding the appointment and reassignment of company executives.
As the conflict drags on, production disruptions are becoming a reality. Samsung Biologics estimated that partial production halts during the three days of divisional strikes before the full walkout caused losses of approximately 150 billion won ($110 million). The union plans to end the strike by Sunday and continue a work-to-rule campaign upon returning to work on Monday. Workers will report for duty and perform their regular tasks but refuse overtime and holiday work. Labor-management talks are scheduled to resume on Monday, with a tripartite meeting including the labor ministry planned for Wednesday.
Meanwhile, the union reportedly proposed establishing a "shared growth fund" to the company at Thursday's meeting. The proposal calls for raising the incentive bonus as the union demands, while using part of the funds to create a pool that would be returned to the local community or used to support subcontractors.
