Samsung Biologics estimates strike has cost more than $100m
South Korean contract drug manufacturer Samsung Biologics estimated a strike by its labour union over pay that started late last month has cost the company about 150 billion won ($101.90 million).
South Korean contract drug manufacturer Samsung Biologics estimated a strike by its labour union over pay that started late last month has cost the company about 150 billion won ($101.90 million).
The estimate reflected the financial impact of a “partial disruption to overall line production,” the company said in an email sent to Reuters.
Samsung Biologics added that “the precise financial impact cannot be quantified at this time, as the company is continuously applying all applicable measures to minimise impact.”
A total of 2,861 employees, about half of the workforce, have been striking since April 28, according to the union’s website.
The management offered a 6.2% hike, according to the company. Both sides will resume talks on Monday, Yonhap News Agency reported.
Reuters could not immediately reach a representative of Samsung Biologics’ union for comment.
The labour dispute could slow Samsung’s efforts to win new orders and disrupt a review of whether to build a sixth plant, according to a note by Shinyoung Securities.
Clients, attracted by Samsung’s on-time, low-cost delivery, could turn to rivals in Europe and the United States, the note said.