Menarini Korea’s labor union said it struck a collective bargaining agreement with the company 18 months after sitting at the negotiating table.

Union leaders and Menarini managers held a signing ceremony on Monday.

The union and management agreed to improve the collective bargaining system and increase the average wage by 4 percent. Previously, Menarini Korea union members could not receive extra allowances if they worked fewer than 52 hours on weekdays and 16 hours on weekends.

Under the new agreement, unionized workers will receive daily expenses, an allowance of 80,000 won ($64), and an alternative vacation day if they work more than eight hours on weekends.

According to the news release, the union and management also signed an employment security pact, agreeing to discuss when the company plans to implement the early retirement program (ERP) and allow the union’s participation when it holds a disciplinary committee against a union member.

The accord also included an increase of 300,000 won in welfare expenses and an incentive payment of 100,000 won for the following year if union members exhaust their annual leave.

The company is the local offshoot of Menarini, an Italy-based multinational pharmaceutical company. Formerly known as Invida Korea, the company was renamed in February 2013 as Menarini Korea. Menarini Asia-Pacific wholly owns the subsidiary in Korea.

The company develops pharmacological solutions for cardiovascular diseases, oncology, pain/inflammation, asthma, and anti-infectives.

The company’s employees set up a labor union and joined the Korea Democratic Pharmaceutical Union in November 2020.

The labor union and management started negotiating in 2020. Since then, the two parties have met 29 times but could not agree due to their differences in the collective bargaining system. The union had been setting plans to go on strike if they failed to reach an agreement with the company.

“The union members are delighted with improving the collective bargaining system and increasing welfare expenses,” Menarini, Korea Union leader Kim Tae-woo said. “While it is regrettable that we could not completely remove the collective bargaining system, it is fortunate that the union has managed to resolve the problem of no-pay for weekend work.”

Kim stressed that the union would continue to focus on abolishing the collective bargaining system, eliminating discrimination in transportation and telecommunication costs, and securing a union office.

Kim added that as the number of employees joining the union increases after finalizing the agreement, the union will surely achieve its goals.