Samsung Biologics(207940) The union recently visited the office of lawmaker Lee So-young of the Democratic Party of Korea, a member of the National Assembly's Climate, Energy, Environment and Labor Committee. As labor-management conflict drags on, it is seeking to expand its contact with the political sphere to find a breakthrough.
According to the biotech industry on the 26th, the Samsung Biologics union met with a staffer from Lee So-young's office in Yeouido, Seoul, on the 24th. A Samsung Biologics union official said, "We discussed unfair labor practices and the National Assembly audit," adding, "We discussed the social expense that continued labor-management disputes within the Samsung group could bring."
The official added, "The point is that we must correct what is wrong so that labor and management can create a culture of inclusion and mutual growth." Whether it will actually lead to a National Assembly audit is uncertain. The selection of witnesses and references for the audit requires bipartisan agreement. Lee's office said it regularly listens to various labor-management issues.
Earlier, the Samsung Biologics union met with an official from the Incheon mayor's office in mid-month. When taking office, Park Chan-dae, the Incheon mayor, said he would make Incheon the world's No. 1 bio city. As the labor-management standoff could affect the bio industry, it is interpreted that the mayor's office also agreed to the meeting.
At the time, the union was said to have asked the mayor's office to meet with Mayor Park Chan-dae. The union expects a meeting with Park as early as next month. An official from the Incheon mayor's office said, "A specific date for the meeting has not been set," adding, "We are listening to the union's views and watching public opinion."
Samsung Biologics labor and management have held more than 20 rounds of talks but have yet to find an exit. Some expect that the situation will enter a resolution phase only after a decision comes in the injunction case now on appeal. In April, when the union announced a strike, Samsung Biologics filed suit with the Incheon District Court to block it, and the court of first instance partially granted the request. It restricted only three strike actions related to preventing drug deterioration and contamination in the production process and allowed the rest. The case has now moved to the appellate stage, where the hearing has concluded.
The Samsung Biologics union launched the company's first strike since its founding in early May. At the time, it proposed an average wage increase of 14% and a bonus of 30 million won per person. It recently revised its demands to a base pay raise of 6.5% plus 3 million won and a performance raise of 3%. It also says it is necessary to allocate company stock equal to 150% of monthly salary for three years.
Samsung Biologics posted consolidation revenue of 2.578 trillion won and operating profit of 1.1672 trillion won in the first half of this year. Revenue rose 28% and operating profit 29% from a year earlier. This is the first time first-half operating profit has exceeded 1 trillion won. With annual revenue projected at 5 trillion won this year, the union says the company should share results with its members. It is also calling for measures to prevent a recurrence of last year's human resources team information leak. Samsung Biologics said it was difficult to respond to this.