Samsung Biologics labor dispute seen dragging on despite Samsung Electronics deal

May 22, 2026, 08:02 am

The labor dispute at Samsung Biologics is showing signs of becoming a prolonged conflict even as the strike situation at Samsung Electronics moves toward resolution.

Industry officials say the key issue at Samsung Biologics extends beyond wage increases, with the labor union demanding participation rights in management decision-making processes. The broader scope of demands has led to expectations that negotiations will be far more difficult than those at Samsung Electronics, where talks mainly centered on bonus and compensation adjustments.

According to industry sources on May 21, the main sticking points in the Samsung Biologics labor negotiations are a base salary increase and the union’s request for involvement in management matters such as mergers and acquisitions, new machinery, and technology adoption.

Industry observers believe this difference in negotiation structure is one reason the dispute may not be resolved quickly. Since the union’s demands involve institutional and governance-related issues rather than simply wages, management is expected to be reluctant to accept them.

“One key difference from Samsung Electronics is that the negotiation agenda at Samsung Biologics includes management participation,” an industry official said. “Because the union is also seeking institutional changes, this is not an issue that can be settled in the short term.”

The union also indicated that the tentative agreement reached at Samsung Electronics would have little impact on its own negotiations.

“The issues at Samsung Biologics are not just about compensation but about establishing a long-term institutional relationship with the company, making the negotiations much more difficult than those at Samsung Electronics,” a union official said. “The Samsung Electronics agreement is unlikely to accelerate talks here.”

Samsung Biologics held a three-way meeting involving labor, management, and government representatives on May 19, but no additional negotiation schedule has been set. Industry officials say the government’s mediation efforts have been focused primarily on Samsung Electronics for now.

Samsung Electronics management and labor reached a tentative agreement late on May 20, leading the union to suspend plans for a general strike. Market watchers believe government mediation efforts may shift toward Samsung Biologics once the Samsung Electronics negotiations are fully concluded.

Concerns are growing that a prolonged labor dispute could weaken Samsung Biologics’ competitiveness in securing global manufacturing contracts. The union has shifted to a “work-to-rule” campaign following the end of its first strike phase.

Because Samsung Biologics counts major global pharmaceutical companies among its clients, industry officials warn that an extended dispute could undermine customer confidence and affect future contract wins. Some analysts estimate that the first round of strikes may already have caused losses of around 150 billion won ($108 million). Further work-to-rule actions or a second strike could have a larger impact on second-quarter earnings.

External conditions are also becoming less favorable for the company’s contract development and manufacturing organization (CDMO) business. The U.S. government’s reshoring policies have increased uncertainty surrounding overseas production contracts.

Seo Geun-hee, an analyst at Samsung Securities, said pharmaceutical companies remain uncertain about how future tariff costs and contract conditions should be structured when outsourcing production to Korean CDMO firms.

“It will be difficult to quickly narrow the gap with competitors that already have large-scale manufacturing infrastructure in the United States,” Seo said.

#Samsung Biologics #Samsung Electronics #labor dispute #union