Samsung Biologics said on Monday that an ongoing union strike over pay has resulted in estimated losses of about 150 billion won (around $101.9 million) for the contract drug manufacturer, highlighting the latest wave of labor unrest affecting the South Korean conglomerate.
Samsung Biologics added that “the precise financial impact cannot be quantified at this time, as the company is continuously applying all applicable measures to minimise impact.”
Around 2,861 employees roughly half of the workforce at Samsung Biologics have been on strike since April 28, according to the union’s website. The ongoing dispute could slow the company’s ability to secure new orders and may also delay a decision on whether to proceed with building a sixth manufacturing plant, as noted by Shinyoung Securities.
The company has proposed a 6.2% salary increase, while the union is seeking a 9.3% raise in base pay, along with a bonus equal to 20% of operating profit and additional cash or cash-equivalent benefits.
Responding to management’s estimate of the financial impact of the strike, the union stated that the company should focus more on reaching a fair agreement rather than urging workers to end the strike.
The union also said the company was struggling with slower orders due to staff shortages and excessive cost reduction that hurt its competitiveness.
Both sides will resume talks on Monday, the union said.
Clients, attracted by Samsung Biologics’ on-time, low-cost delivery, could turn to rivals in Europe and the United States, the note said.
Samsung Biologics counts major pharmaceutical firms such as Pfizer, Merck & Co., Eli Lilly, GlaxoSmithKline, and Novartis among its clients, according to a March filing. The company operates five manufacturing plants with a combined capacity of about 784,000 litres, producing biologic medicines such as antibody-based drugs.
The labor dispute also reflects a broader risk of unrest within the wider Samsung Group. Unions at Samsung Electronics have signaled potential industrial action as they push for higher bonuses.
Workers at the chipmaking giant have indicated plans to strike for 18 days starting May 21, a move that could disrupt shipments, drive semiconductor prices higher, and potentially benefit competing companies.
