Samsung Biologics has moved to defuse a labor-management conflict that erupted after a recent employee personal data leak, but it is struggling.
The company side, including CEO John Rim of Samsung Biologics, presented a proposal for the first time at a third meeting with the union on the 25th, but the union did not accept the key offer.
There is also concern that the standoff between labor and management is affecting the recent effort to win contract development and manufacturing (CDMO) deals with global pharmaceutical companies.
According to multiple Samsung Biologics officials on the 26th, John Rim, CEO and president, directly explained the company's proposal orally and suggested an agreement to the union during the third meeting the day before.
The company's proposal outlined by Rim consisted of six detailed items, including measures to improve transparency in the personnel system, a plan to discuss changes to workplace rules and HR policies, payment of special bonuses, and grants to a labor-management coexistence fund.
At the meeting, labor and management discussed each item, but the union agreed to only one.
Rim proposed that the union participate as a reviewer for the awards program (Samsung Biologics Way) that the company has operated, and the union accepted.
For the rest of the company's proposals, the union said they were "unacceptable" or "conditionally acceptable."
Rim proposed improving the disciplinary process so the union's views would be heard and reflected in deliberations when disciplining members, but the union did not accept it. The union said, "Objectivity and fairness must be guaranteed," and demanded "the right to decide on discipline."
In particular, there was also a proposal to pay special bonuses to employees and to provide grants to a "labor-management coexistence fund." The company proposed to first pay 3 million won per person this year as a special bonus for last year's performance, and to pay for this year's performance next year, with the specific amount to be discussed in next year's wage collective bargaining.
It also proposed granting 1 billion won in 2026 and 1 billion won in 2027 to the "labor-management coexistence fund."
But the union did not accept it. The union argued, "The size of the bonus and the fund is far from enough to make up for members' losses and restore trust." On the coexistence fund, the union's position is that grants totaling 3.4 billion won are needed, based on 1 million won per member.
A plan to discuss changes to workplace rules and HR policies with the union in advance was also presented. Rim proposed, "The union will participate in quarterly center head and CEO-led meetings, and I will meet with the union monthly," but the union conditioned agreement on the provision of HR policy-related data, saying, "Transparent and objective data must come first for effective consultations."
There was also discussion on ways to improve the operation of the mental health center. The company emphasized a policy of strengthening independence in its operation, but the union saw little progress, saying there had been no discussion of specific measures.
Rim personally met the union in an active bid to "soothe employees." But with the union rejecting the main proposals the company prepared that day, Rim also faces an awkward situation.
Inside and outside the group, some warn that if the labor dispute drags on, it could emerge as a business risk.
An internal official who requested anonymity said, "My understanding is that this issue has already had direct and indirect effects in the negotiations to win contract development and manufacturing (CDMO) deals with global pharmaceutical companies recently," adding, "Global drugmakers bring up the issue and express concerns."
Samsung Biologics said on the 4th that this year's cumulative order intake (based on disclosures) reached 5.5193 trillion won, surpassing last year's annual total of 5.4035 trillion won.
Following monoclonal antibody production, the company is expanding its CDMO business into the Antibody-Drug Conjugate (ADC) therapy field. It has built and is operating ADC-dedicated production facilities, but has yet to win contract manufacturing deals for ADC therapies at the commercialization stage.
Samsung Biologics said, "We are continuing management meetings centered on the CEO," adding, "The company will continue active dialogue efforts to maintain smooth labor-management relations going forward."