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Photo: Samsung Biologics |
[Alpha Biz= Paul Lee] Labor-management negotiations at Samsung Biologics are showing signs of prolonged conflict as the company and its union remain far apart on key issues, including wages and bonus structures.
According to industry sources on March 5, Samsung Biologics and the Samsung Biologics branch of the Samsung Group Super Enterprise Labor Union have been negotiating their wage and collective bargaining agreement since December last year. The two sides have held 10 rounds of talks, but have failed to narrow differences over core issues such as performance-based bonuses and working conditions.
The aftermath of a personal data leak involving employees last year has also become a contentious issue in the negotiations.
A union official said, “The negotiations are extremely difficult. If things continue as they are, there is a high possibility the talks will break down.” The union plans to continue discussions until the end of March, but if negotiations collapse, the dispute could proceed to mediation by the regional labor commission, potentially opening the door to legal strike action.
A key sticking point is the wage and incentive structure. The union is demanding a 9.3% base wage increase and a major overhaul of the company’s performance bonus system.
Samsung Biologics currently offers bonuses through a Target Achievement Incentive (TAI) and an Over-Performance Incentive (OPI). The union wants the TAI cap raised from 100% of base salary to up to 200% depending on operating profit margins, and is also pushing to revise the OPI system to pay bonuses equivalent to 20% of operating profit without a cap, instead of the current system based on Economic Value Added (EVA).
The union has also proposed improvements in working conditions, including a reduction in weekly working hours from 40 to 36 hours (a “4.5-day workweek”), a monthly 300,000 won hazard allowance for employees involved in antibody-drug conjugate (ADC) processes, and the abolition of the wage peak system along with extending the retirement age to 65.
The talks have also addressed a major internal data breach in November last year, when a shared company folder used by the HR department was inadvertently exposed to all employees. The incident allowed access to sensitive personnel information of about 5,000 employees, including national ID numbers, salaries and performance evaluations.
The leak also drew criticism after it was revealed that the folder contained records of employees who donated to the union and logs of union leaders’ break times.
The company blocked access immediately and CEO John Rim issued a public apology. In December, labor and management agreed to provide 4 million won in compensation to each employee, but disagreements over responsibility and follow-up measures remain unresolved.
AlphaBIZ Paul Lee(hoondork1977@alphabiz.co.kr)
