Court Restricts Samsung Biologics Strike Across Nine Production Processes

Samsung Biologics union members hold a rally in Songdo, Yeonsu District, Incheon, in April. (Samsung Biologics Labor Union) The second general strike announced by the Samsung Biologics labor union has reached a critical juncture following a court ruling requiring operations to be maintained across nine production processes. On Oct. 16, the First Civil Division of the Incheon Branch of the Seoul High Court partially granted the company's appeal in its application for an injunction restricting industrial action, extending the order to nine production processes. Under the ruling, the union must maintain normal staffing levels and the same duty of care as during regular operations to ensure that production facilities continue operating throughout the labor dispute. The court expanded the scope of the restrictions from three processes covered by the lower court's ruling, including concentration and buffer exchange and drug substance filling, to include six additional processes, such as cell culture, harvesting and virus filtration. The decision took into account the potential social consequences of disrupting supplies of cancer treatments with no available alternatives, as well as the risk of pharmaceutical products deteriorating. The court also issued an indirect enforcement order requiring the union to pay the company 20 million won, or approximately $15,502, for each violation. While the ruling has effectively made it difficult for the union to immediately halt existing production processes, the union remains determined to proceed with collective action. Union representatives emphasized that the ruling does not constitute a blanket prohibition on strikes, arguing that production of new batches initiated after a strike begins could still be suspended. Union Chairman Park Jae-jeong said in a statement that a different strategy would be needed but that the plan to take collective action remained unchanged. However, facing growing practical constraints, the union canceled a large-scale rally originally scheduled for Oct. 21 and instead shifted its focus to internal communication with members. It is also comprehensively reviewing plans for a three-week second strike originally scheduled to begin on Oct. 26, including a possible change to the start date. The union intends to continue its legal challenge and is considering filing an objection and a further appeal against the ruling. The dispute comes ahead of Samsung Biologics' third-quarter earnings announcement, adding to uncertainty surrounding the company's operations. Securities industry analysts expect third-quarter revenue to reach around 1.3 trillion won, up 9% year on year, but have identified the labor dispute as a key variable. The company estimates that the first strike in May resulted in approximately 150 billion won in lost revenue. In particular, concerns are growing over potential damage to supply reliability, a cornerstone of the contract development and manufacturing organization (CDMO) business. Because interruptions to biopharmaceutical production processes can require entire batches to be discarded, a prolonged labor dispute could undermine confidence among global clients. An industry official said stable production operations are directly linked to securing new CDMO contracts, making it urgent for labor and management to find common ground. Labor and management also remain sharply divided over working conditions. The union is demanding a 15.5% wage increase for entry-level employees, while the company maintains that it already offers compensation among the highest in the industry. Last year, the average annual compensation of Samsung Biologics employees stood at 114 million won, higher than the 107 million won recorded at rival Celltrion. The dispute has also become controversial as it extends into corporate management matters. The union recently sent an official letter to financial regulators requesting a review of the company's planned 2.6 trillion won rights offering. Samsung Biologics maintains that the union's actions go beyond the scope of labor negotiations and constitute excessive pressure, while reiterating its commitment to building a mutually beneficial labor-management relationship.