Samsung Biologics labor dispute drags on as union stages another strike
People walk past Samsung Biologics headquarters in Incheon, Friday, when its labor union launched a three-week partial strike. Yonhap
Protracted dispute triggers fear on contract manufacturing competitiveness
Samsung Biologics' unionized workers staged another strike Friday, as wage and collective bargaining negotiations between labor and management have dragged on for more than six months.
With global rivals moving quickly to expand their contract drug manufacturing capability, concerns are growing that the prolonged labor dispute could undermine Samsung Biologics' reputation as a reliable supplier capable of delivering the promised volumes of drugs on time.
The Samsung Biologics labor union said it began its partial strike on Friday, without holding a separate rally. The strike is scheduled to continue for about three weeks, through Nov. 27.
About 400 workers, or 10 percent of the union's roughly 4,000 members, are participating in the strike. They work in departments including quality control testing, quality assurance, logistics and production.
Samsung Biologics’ labor and management declared a breakdown in their 2026 wage and collective bargaining negotiations in March, prompting the union to stage a partial strike in April, the first since the company was established in 2011.
The union subsequently staged a full-scale strike from May 1 to 5, involving about 2,800 members. Since then, union members have continued their action by refusing overtime and holiday shifts. Although negotiations resumed through government mediation, the two sides have yet to reach an agreement.
Management has offered a 6.2 percent increase in base pay and a one-time bonus, while the union is demanding a 9.5 percent increase in base pay and performance bonuses equivalent to 15 percent of the company's operating profit.
Since relatively few union members are participating in the latest strike and a court ruling requires the union to maintain key manufacturing operations at normal levels, the risk of major production disruptions remains relatively low.
“The company remains open to dialogue to reach an amicable agreement on wages and collective bargaining terms, and its commitment to resolving the dispute through negotiations remains unchanged,” Samsung Biologics said.
“We will also make efforts to minimize any disruptions to the manufacturing schedule by setting up contingency workforce allocation plans within the legal boundary,” it added.
Officials cut a ceremonial ribbon during an event marking Samsung Biologics’ acquisition of a biopharmaceutical manufacturing plant in Rockville, Md., March 31. From front row fifth from left are Korean Ambassador to the United States Kang Kyung-wha, Samsung Biologics CEO John Rim, Maryland Gov. Wes Moore and Congresswoman April Delaney. Courtesy of Samsung Biologics
However, concerns remain that the prolonged labor dispute could undermine Samsung Biologics' reputation among customers, while global contract manufacturing rivals are moving quickly to adapt to rapid changes in the market.
Global contract development and manufacturing organizations (CDMOs) are reshaping their business portfolios through a two-track strategy of expanding production capacity and shifting toward higher-value businesses such as antibody-drug conjugates (ADCs).
Swiss CDMO giant Lonza said Tuesday it has signed an agreement to acquire five U.S. CDMO sites from Germany’s Merck, at “a total enterprise valuation in the low- to mid-triple-digit millions Swiss francs.”
Once the acquisition is completed, Lonza's CDMO manufacturing sites in the U.S. will expand from four sites to nine.
The facilities specialize in advanced drug manufacturing technologies, ADCs, gene therapies and complex drug delivery systems, allowing Lonza to not only expand its capacity but also strengthen its capabilities in higher-value pharmaceutical manufacturing.
ADCs are drugs that combine antibodies with powerful cancer-killing agents to deliver treatment directly to cancer cells while minimizing damage to healthy cells, making them a promising technology in cancer treatment.
Samsung Biologics is also working to expand its manufacturing footprint and diversify its contract manufacturing portfolio. The company has secured a manufacturing facility in Rockville, Maryland, to establish a production base in the U.S. and is also pursuing the acquisition of Swiss peptide CDMO PolyPeptide.
In ADCs, however, Lonza already manufactures several commercialized products and is estimated to hold more than 30 percent of the global ADC contract manufacturing market.
Samsung Biologics, a latecomer in the ADC market, opened a dedicated facility in March 2025 and launched GMP-compliant manufacturing services in early 2026. It plans to have an ADC drug product facility ready by the third quarter of 2027.
With Lonza expanding its U.S. capabilities from payload manufacturing to antibody conjugation, Samsung Biologics faces growing pressure to leverage its world-leading antibody production capacity to compete in the ADC market.
Against this backdrop, industry officials said repeated strikes could undermine Samsung Biologics' reputation for reliable, on-time delivery, potentially weakening its position in future contract negotiations.
“CDMO competition is no longer just about production capacity but also technology portfolios,” an industry official said. “If Samsung Biologics loses its reputation for reliable manufacturing, it could affect its competitiveness in the global market.”