Samsung Biologics filed for an injunction to prohibit industrial action in response to the union's move to strike. The step is seen as based on the view that, given the characteristics of the production process, a prolonged walkout could lead to large-scale losses and disruptions in orders.
On the 2nd, according to industry sources, Samsung Biologics on the 1st filed for an injunction with the Incheon District Court to prohibit the union's industrial action. The basis is Article 38 of the Trade Union and Labor Relations Adjustment Act. The provision restricts acts that hinder normal operations during industrial action or suspend work necessary to protect facilities.
The company is said to believe that if skilled personnel leave the production site, production stability could be shaken due to the characteristics of the biopharmaceutical contract manufacturing (CDMO) process. Biopharmaceutical production proceeds in a "batch" method that cultures living cells for a set period, requiring precise maintenance of temperature, oxygen, and nutrient conditions. If a gap in process control occurs, the entire production lot could be discarded.
In the industry, some say that if production disruptions materialize due to the strike, losses could reach the trillion-won range. There is also an assessment that weakened trust from global clients would be a bigger burden than the production disruption itself.
In response, the union said it would proceed with rallies and a strike as planned. Regarding the company's injunction request, the union said it plans to pursue legal action, calling it "an attempt to restrict the right to collective action guaranteed by the Constitution."
The union also argued, "If a strike is restricted solely because it is a continuous process, that logic is no different from saying strikes are impossible in other continuous-process manufacturing industries such as refining, food, and steel."
The Samsung Biologics union says it will launch a full-scale strike starting May 1. In the strike ballot held from the 24th to the 29th on the subject, 3,508 of 3,678 eligible voters participated, and 3,351 of them reportedly voted in favor. The union currently has about 3,689 members, or about 75% of all employees.
Labor and management held a total of 13 rounds of wage and collective agreement talks since Dec. but failed to reach a deal. The union is demanding compensation commensurate with last year's operating profit (about 2.0692 trillion won).
The main issues are the wage increase rate and the criteria for calculating performance bonuses. The union is demanding an average 14% wage increase and that 20% of operating profit be used as the over-profit incentive (OPI) pool.
By contrast, management has proposed a 6.2% increase aligned with major affiliates such as Samsung Electronics and criteria of 10% of operating profit or 20% of economic value added (EVA).
In addition, payment of a 30 million won labor-management coexistence encouragement bonus per person, adoption of a 36-hour workweek, and extending the retirement age to 65 are also on the table.
In the industry, some expect labor-management talks could resume as soon as John Rim of Samsung Biologics returns from a business trip to the United States. Rim is reportedly overseas for matters related to acquiring a biopharmaceutical production facility in Rockville, Maryland.
The company did not disclose the representative's specific return schedule.