A union strike of thousands of workers is still ongoing at Korean CDMO Samsung Biologics, costing the company over a million dollars so far, by its own estimate.<\/p>\n
The company currently chalks up a financial impact of about 150 billion Korean won ($102 million), which reflects \u201cpreemptive production adjustments implemented to mitigate potential impacts across manufacturing lines,\u201d a company spokesperson explained to Fierce, adding that the total is not based on daily operational impact.\u00a0<\/p>\n
Union workers kicked off a five-day general strike on May 1, escalating a brewing dispute over wage conditions. So far, more than 2,800 participants have joined the strike, according to the union\u2019s website<\/a> (Korean).<\/p>\n Samsung Bio plans to hold additional discussions with the union this week, including a follow-up meeting on May 6 and a discussion to be mediated by the Ministry of Employment and Labor on May 8, according to the spokesperson.\u00a0\u00a0<\/p>\n \u201cThe company remains fully committed to ongoing dialogue and will continue to make every effort to reach a timely and amicable resolution,\u201d the spokesperson said in an emailed statement. \u201cIn the meantime, the company is also taking all necessary measures to maintain operational stability and ensure continuity of supply for clients.”<\/p>\n When the strike began on Friday, the company looked to maintain its supply stability and minimize disruption by assigning \u201cexperienced personnel and those who have recently completed training to backfill key operational areas,\u201d a spokesperson told Fierce Pharma at the time. The CDMO was also making sure to keep up \u201cproactive communication with our clients to manage any potential impact.\u201d\u00a0<\/p>\n The strike follows an April 22 labor union\u00a0rally<\/a>\u00a0that gathered an estimated 2,200 participants outside Samsung Bio\u2019s Bio Campus 1 for an hour during non-working hours. At the time, union chair Park Jaesung said that the union was fighting to \u201cchange the company\u2019s decision-making structure.\u201d<\/p>\n \u201cEven now, we have not abandoned the chance for dialogue,\u201d Jaesung said in a statement at the time. \u201cBut if management continues to refuse meaningful talks, we will show our determination through the planned strike action.\u201d<\/p>\n The union is seeking a 14% average wage increase, among other demands, the Korea Herald reported<\/a> on day three of the strike. Samsung Bio has countered with a 6.2% wage increase, arguing that the union’s demands demands fail to recognize the company’s financial capacity and operational constraints, according to the newspaper.\u00a0<\/p>\n Back in March, more than 95% of the union voted<\/a>\u00a0in favor of a strike after mediations ceased, outlining a plan to initiate \u201cphased strike actions” unless company management \u201cpresent[ed] a credible and autonomous proposal,\u201d the union had said.\u00a0<\/p>\n The labor union, which said it represents approximately 75% of Samsung Bio\u2019s employees, has highlighted lower wage conditions than last year despite the company\u2019s growth. It attributed this in part to a \u201clack of independent\u00a0bargaining authority\u201d with the CDMO\u2019s larger parent company, Samsung Electronics.\u00a0<\/p>\n A separate strike is also brewing at Samsung Electronics, according to the Korea Herald<\/a>.\u00a0<\/p>\n