INCHEON – Samsung Biologics, one of the world’s largest contract development and manufacturing organizations (CDMO), has entered its first full-scale strike since its inception. The industrial action has led to the suspension of critical production lines, resulting in an estimated financial loss of approximately 150 billion won (USD 110 million). The disruption has sparked serious concerns as it directly impacts the supply of life-saving medications, including cancer treatments.
On May 1, the first day of the general strike, Samsung Biologics released an official statement expressing deep regret over the situation. "We feel a heavy responsibility for the production disruptions caused by the strike," the company stated. "We are taking every possible measure to minimize the damage to our clients and will do our utmost to prevent further losses."
The crisis began to escalate on April 28, when workers in the material dispensing department—a crucial stage in the early manufacturing process—initiated a preemptive walkout. According to the company, this led to a bottleneck where essential raw materials could not be supplied to production lines on time. Consequently, the normal manufacturing of all products became impossible.
"Despite our efforts to deploy emergency personnel to maintain operations, we were forced to halt the production of several batches," a company spokesperson said. "These batches included critical products such as anticancer drugs and HIV treatments, which are vital to patients' lives."
The labor union, which represents approximately 2,800 of the company’s 4,000 employees, claims that the management has shown a lack of sincerity in negotiations. However, the company countered this claim, stating it has made every effort to reach an agreement while maintaining fiscal responsibility.
The divide between the two parties remains vast. The union has demanded a 14% average wage increase and a one-time incentive bonus of 30 million won per worker. Samsung Biologics maintains that these demands are "unrealistic" given the need to secure resources for future growth and the company's current payment capacity. Furthermore, the company noted that certain union demands regarding personnel management and management rights were non-negotiable.
Industry analysts warn that a prolonged strike could damage Samsung Biologics' global reputation for reliability. As a CDMO, the company’s primary value proposition is the timely delivery of high-quality biopharmaceuticals to global tech giants. Any long-term disruption could lead to a breach of contract with international pharmaceutical clients.
The silence at the Incheon plant on Friday morning stood in stark contrast to the usual 24/7 bustling activity of the world's largest bio-manufacturing hub. Both sides are scheduled to return to the negotiating table on May 4, under the mediation of the Central Regional Employment and Labor Office.
"We will participate in the upcoming dialogue with sincerity," the company emphasized. "Our priority is to restore peace to the workplace as soon as possible and ensure that our production lines return to normal to serve patients worldwide."
As the bio-industry watches closely, the outcome of the May 4 negotiations will be a turning point for the company's future labor relations and its standing in the global market.
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