A major South Korean pharmaceutical contract manufacturer is facing significant financial losses as a worker strike enters its second week over wage disputes.
Samsung Biologics reports that the ongoing labor action, which began April 28, has resulted in estimated damages of approximately 150 billion won, equivalent to $101.90 million.
Company officials told Reuters via email that the financial toll stems from “partial disruption to overall line production.” However, they noted that “the precise financial impact cannot be quantified at this time, as the company is continuously applying all applicable measures to minimise impact.”
According to union records, 2,861 workers – representing roughly half of Samsung Biologics’ total staff – are participating in the work stoppage that centers on compensation disagreements.
Company management has proposed a 6.2% salary increase, according to Samsung Biologics representatives. Yonhap News Agency reports that both parties are scheduled to return to the bargaining table on Monday.
Reuters was unable to obtain immediate comment from union representatives.
Financial analysts at Shinyoung Securities warn that the extended labor conflict could hamper Samsung’s ability to secure new contracts and may delay decisions about constructing a sixth manufacturing facility.
The brokerage firm noted that customers who have historically chosen Samsung for its reliable, cost-effective delivery schedules might shift their business to competitors in Europe and the United States if the disruption continues.
