Samsung Biologics (207940.KS) and its labor union have failed to reach an agreement after 13 rounds of negotiations. The union reportedly demanded an average 14% wage increase, a 30 million won bonus per employee, and company stock allocations over three years. The union is also known to have argued during negotiations that the company should compensate workers upfront with the equivalent of losses it would incur from a strike — a stance that suggests finding common ground will be far from easy. Critics point out that what should be normal wage bargaining has been replaced by excessive demands premised on strike-related losses.
In the bio industry, production stability and reliability are the core of competitiveness. Contract development and manufacturing organization (CDMO) business operates on contracts with global pharmaceutical companies that are predicated on guaranteed delivery timelines and quality. In this context, the mere possibility of a strike is a risk in itself. Even if no actual production disruption occurs, uncertainty alone can influence client decisions.
The global competitive landscape is also shifting rapidly. Major players such as Switzerland's Lonza and Japan's Fujifilm are vying for market leadership through massive capital investment and production capacity expansion. With latecomers also entering the fray, concerns over production stability caused by internal variables will inevitably lead to weakened competitiveness.
The bigger problem is that wage increase demands go beyond simple cost increases — they are directly tied to investment capacity. The bio industry requires concurrent large-scale capital investment and long-term research and development. If fixed-cost burdens rise rapidly, resources available for future investment will inevitably shrink. This ultimately raises concerns about falling behind amid intensifying global competition.
Despite all this, the Samsung Biologics union is currently conducting a vote on whether to authorize strike action. Workers' rights must be respected. However, a balanced approach is needed — one that considers the industry's characteristics, its stage of growth, and the global competitive environment. At a moment when K-Bio stands at a growth inflection point, it must not surrender its opportunities for growth by succumbing to short-term sweetness.