[Edaily Reporter KIM SAE-MI ] SAMSUNG BIOLOGICS(207940) Management and labor have agreed to undergo mediation by the Labor Relations Commission to resolve their long-standing dispute over wages and collective bargaining. Attention is now focused on whether the wage and collective bargaining negotiations will enter a new phase, as the two sides—who had been unable to find common ground for months regarding wage increases and performance bonuses—have agreed to “post-mediation adjustment.”
According to the biotech industry on the 14th, SAMSUNG BIOLOGICS and the Win-Win Labor Union recently agreed to accept the post-mediation procedure proposed by the Central Regional Employment and Labor Office, which is under the Ministry of Employment and Labor. Representatives from both sides signed the relevant documents that day and plan to submit them to the Incheon Regional Labor Relations Commission.
Post-mediation is a procedure in which the Labor Relations Commission or similar bodies step in to mediate again if labor and management fail to reach an agreement even after the labor dispute mediation process has concluded. The specific schedule and composition of the mediation committee have not yet been finalized. It is reported that labor and management have reached a consensus to proceed swiftly with the process as soon as the composition of the mediation committee is finalized.
This agreement on post-mediation was reached amid labor-management conflict over wage and collective bargaining negotiations that had escalated to a strike. Following a partial strike in April, the union launched a full-scale strike in May—the first in SAMSUNG BIOLOGICS’ history. Since then, the union has continued a “law-abiding struggle” by refusing to work overtime or on holidays. The cumulative losses resulting from production disruptions and other factors are estimated to amount to approximately 150 billion won.
Management and the union had been engaged in wage and collective bargaining negotiations since late last year but were unable to bridge their differences regarding the wage increase rate, performance bonus calculation criteria, and employee benefits. Management proposed a 6.2% increase in base pay and a one-time payment of 6 million won. The union had demanded a separate fixed-amount raise in addition to the base pay increase, as well as a settlement bonus.
Performance bonuses are also a major point of contention. The union initially demanded that 20% of operating profit be paid as performance bonuses but lowered this demand to 15% during negotiations; however, no agreement was reached. In addition, the union has demanded adjustments to starting salaries for new hires, the allocation of restricted stock units (RSUs), the payment of labor-management cooperation incentives and special incentives, an expansion of contributions to the in-house employee welfare fund, and an increase in shift differential pay.
As negotiations dragged on, changes also occurred within the union’s organizational structure. The Win-Win Union withdrew from the Samsung Group inter-company union and transitioned to an independent bargaining system. In a membership referendum held last month, 96.5% of the 2,392 voters supported the change in organizational structure.
Labor and management continued negotiations afterward but failed to reach an agreement on key issues such as wages and performance bonuses. With the acceptance of post-negotiation mediation, a third party—the Labor Relations Commission—will now participate in the arbitration process, raising expectations that the prolonged standoff may be resolved. However, since differences remain between labor and management on major issues, it remains to be seen whether post-negotiation mediation will immediately lead to a settlement of the wage and collective bargaining agreement.
Park Jae-sung, chairman of the Win-Win Labor Union, stated, “During the 24th round of collective bargaining held on the 11th, management actively proposed post-negotiation mediation, and after careful consideration, the union decided to accept it.” He added, “While it may take some time to form the mediation committee, both sides have reached a consensus to proceed swiftly once the committee is established.”
