[Edaily Reporter Kim Jinsoo ] SAMSUNG BIOLOGICS(207940)has announced plans to respond strictly, in accordance with the law and established principles, to any illegal or unlawful acts related to the conflict with the labor union over wages and collective bargaining agreements. As the union has escalated its response—announcing a second general strike starting on the 26th, demanding negotiations with SamsungElectronics (the company’s second-largest shareholder), and even requesting that financial authorities suspend the company’s planned rights offering—SAMSUNG BIOLOGICS has stated its intention to take proactive measures against acts of obstruction of business.

On the 7th, SAMSUNG BIOLOGICS sent a statement via email to its employees stating, “Through 10 months of negotiations and three mediation sessions at the Labor Relations Commission, the company has presented the most generous proposal it can afford,” adding, “While we will continue to communicate in an effort to resolve the issue through dialogue, we will take measures in accordance with the law and established principles regarding the recent illegal acts.”

Management and the union at SAMSUNG BIOLOGICS have been engaged in protracted negotiations over wage increases, performance bonuses, and personnel systems. The two sides underwent three rounds of post-negotiation mediation at the Incheon Regional Labor Relations Commission from last September through the 1st of this month but failed to reach an agreement. In recent negotiations, the company proposed a 6.2% increase in base pay, while the union demanded a 9.5% increase, and the two sides have been unable to bridge the gap. In addition, the union is demanding performance-based bonuses linked to operating profit and greater participation in personnel and management decision-making.

Consequently, the union will launch a second general strike starting on the 26th of this month, lasting three weeks. This marks the second general strike following the first full-scale strike in the company’s history, which took place from May 1 to 5. Since the 2nd of this month, the union has been engaging in a “law-abiding struggle” by refusing to work voluntary overtime or on holidays and strictly adhering to working hours and operational procedures.

SAMSUNG BIOLOGICS has clearly stated the “no work, no pay” principle for strike participants. The company stated, “We will not compensate or make up for any unpaid wages resulting from participation in labor disputes, such as strikes, in any manner or form, in accordance with relevant laws and principles.”

In particular, on the 6th, the union argued that since SamsungElectronics is the second-largest shareholder of SAMSUNG BIOLOGICS, it qualifies as an “employer” under the Labor Union Act (commonly known as the “Yellow Envelope Act”), and sent an official letter to the CEO of SamsungElectronics requesting “collective bargaining on common standards and the operation and modification of personnel and compensation systems.” Furthermore, on the 7th, the union escalated its response by requesting that the Financial Supervisory Service and the Korea Exchange suspend and reconsider the company’s schedule for the 3 trillion won rights offering.

Furthermore, according to SAMSUNG BIOLOGICS, the union recently posted flyers containing derogatory language alongside a photo of CEO John Lim within the company; SAMSUNG BIOLOGICS determined that such actions constitute personal attacks and defamation. SAMSUNG BIOLOGICS stated, “Defamatory and insulting acts that undermine a healthy bargaining culture cannot be justified under any circumstances.”

Finally, SAMSUNG BIOLOGICS stated, “After careful consideration regarding the balance between sustainable growth and improving employee welfare, we have devised the best possible solution,” adding, “We will continue to strive for a resolution through dialogue, but we will respond strictly to any actions that violate the law.”