Following Samsung Biologics, the Celltrion union officially launched on the 1st. The Celltrion union says discussions are needed on performance bonuses and staffing as record results are expected this year. In the pharmaceutical and biotech industry, some say, "If labor-management talks do not proceed smoothly and lead to strikes, it could affect trust in K-bio."
◇Celltrion union launches…"Demanding compensation and respect befitting our dedication"
The Korean Confederation of Trade Unions (KCTU) chemical-fiber-food industry union said that the Celltrion chapter launched that day. This is the first time a union has been formed at Celltrion since Chair Seo Jung-Jin founded the company in 2002. The Celltrion union's nickname is "Unitrion."
Declaring its founding, the Celltrion union said, "We demand transparent compensation and respect commensurate with our dedication." It called for transparently establishing the excess-profit performance bonus calculation standard (PS) and building a negotiation-centered wage decision system. Other demands include hiring regular staff in line with good manufacturing practice (GMP), ending rotation designed to plug staffing gaps, improving employee benefits, and rejecting unilateral orders.
A Celltrion official said, "We respect the rights guaranteed by law regarding the establishment of a union," adding, "If related procedures proceed, we will respond in good faith." The official also said, "We will communicate with employees and practice responsible management to ensure there is no setback to the stability of operations and continued growth."
◇"Trust in K-bio likely to be affected"
The securities industry projects consolidated sales of 5 trillion won this year for Samsung Biologics and Celltrion. With record results expected, the union says the company should share the gains with employees. Samsung Biologics also demanded a base pay raise and payment of 20% of operating profit as performance bonuses, launched a full strike last month, and has yet to reach an agreement with management.
A biotech industry official said, "In the past, there were pharmaceutical and biotech unions, but they mainly acted in response to restructuring at foreign companies," adding, "Recently, it seems to be moving in a direction of discussing benefits such as performance bonuses in line with improved results."
Amid this mood, the industry is watching with concern. If labor and management fail to find common ground and it leads to strikes, factory operations could be disrupted. Because biopharmaceuticals culture and purify living cells, if the process stops, products can deteriorate and be discarded.
Some also say that, as Samsung Biologics and Celltrion compete for orders in the global contract development and manufacturing organization (CDMO) market, it could affect trust in Korean biotech corporations.
A biotech industry official said, "If labor-management talks proceed well and an agreement is reached, it will be appropriately helpful from a management perspective," but added, "From the standpoint of overseas pharmaceutical companies, they will inevitably scrutinize more closely during the process of signing contracts with domestic corporations to ensure production processes will not be halted."