Industry-Specific ESG Challenges & Solutions

Samsung Biologics Strike Raises CDMO Supply Chain Risks

  • Union members overwhelmingly approve strike action with 95.52% voting in favor on a 95.38% turnout, clearing the final legal hurdle after mediation ceased.
  • Union emphasizes this is a fight against structural corporate governance issues, citing unresolved allegations concerning unfair labor practices and ESG compliance risks.
  • Management adhered to a group-level wage guideline rather than bargaining on the basis of Samsung Biologics’ own performance, exposing a lack of independent bargaining authority.

The Samsung Biologics Labor Union (President: Jaesung Park), representing approximately 75% of the company’s total employees, announced today that its members have overwhelmingly voted in favor of a strike, with 95.52% voting in favor on a 95.38% turnout during a voting period from March 24 to March 29. Following the Incheon Regional Labor Relations Commission’s decision to cease mediation, the union has now secured the legal mandate to strike.

The union stressed that this strike is not merely a wage dispute. It stems from deep structural concerns regarding the company’s ESG management, lack of operational autonomy, and passive labor relations.

Primarily, the union highlighted unresolved corporate governance issues, including allegations concerning unfair labor practices and the unauthorized use of employee personal data, which were prominently reported by South Korea’s major broadcaster, MBC, in November 2025. The union believes this crisis stems from management’s failure to address risks that could have been mitigated earlier, viewing it as a critical compliance risk.

Furthermore, despite Samsung Biologics reporting a 56.6% year-over-year increase in operating profit, management offered wage conditions falling below last year’s. The union argues this exposes a lack of independent bargaining authority, as management rigidly adhered to a 4.1% group-level wage guideline dictated by its parent company, Samsung Electronics, ignoring the company’s own record earnings.

“A strike is a constitutionally protected and necessary tool to bring management to the negotiating table,” said Jaesung Park, President of the Samsung Biologics Labor Union. “In the global Contract Development and Manufacturing Organization (CDMO) industry, unresolved labor disputes and compliance issues directly threaten the supply chain of our international clients. Ultimately, our strike is aimed at correcting these governance failures and promoting a more transparent and accountable corporate environment.”

As the majority representative body, the union declared that unless management presents a credible and autonomous proposal, it plans to initiate phased strike actions, starting with an offline rally on April 22, leading up to a potential general strike on May 1.

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