Tag Archives: Labor Issues

Avalanche Studios devs have reached a contract agreement in bid to unionize

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Late last year, over 100 employees of Avalanche Studios, the makers of Just Cause, announced an intent to unionize. The workers have officially ironed out a collective bargaining agreement with the Swedish labor unions Unionen and Engineers of Sweden. The agreement goes into effect during the second quarter of 2025.

While specifics of the agreement remain unknown, Avalanche said that it “will help standardize frameworks around essential areas such as salaries, benefits, employee influence, and career support.” The company says it’s working closely with both unions to ensure a smooth implementation of these frameworks.

Avalanche was founded in Sweden, but has since become a global entity. With this in mind, the move to unionize only impacts workers located in Sweden, which amounts to around 100 people. The company employs more than 500 workers globally.

Despite that caveat, this is still another high-profile move toward improving the rights of workers in the gaming industry. Avalanche joins several other companies that recently organized under collective labor contracts. Sega of America workers overwhelmingly voted to unionize last year, a move that impacted 200 employees. Over 300 ZeniMax Studios quality assurance workers voted to unionize last year, and parent company Microsoft didn’t stand in the way. Activision, another Microsoft company, boasts a union with over 600 members, which is the largest one in the entire industry.

This is all good news for workers, but there’s also a dark cloud floating around the industry. There have been a boatload of layoffs throughout the past several months. As a matter of fact, over 6,000 people lost their jobs in January alone. Impacted workers hail from many of the companies mentioned above, like Sega of America, Activision Blizzard and ZeniMax.

As for Avalanche, it’s continuing work on the forthcoming Xbox exclusive Contraband. The game’s been in the pipeline since 2021 and it looks to be an open-world co-op adventure set in the 1970s.

This article originally appeared on Engadget at https://www.engadget.com/avalanche-studios-devs-have-reached-a-contract-agreement-in-bid-to-unionize-183645291.html?src=rss

Sega of America workers have ratified their union contract

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Workers at Sega of America, a division of Sega Sammy Holdings Inc., have officially ratified their union contract, as reported by Bloomberg. This makes it one of the first major North American video-game companies to take this step, which could bode well for future organized labor pushes in the industry.

The contract was ratified after workers overwhelmingly voted to unionize last year. It covers around 150 people working in various departments throughout the company, including brand marketing, games as a service, localization, sales and quality assurance. The union is called the Allied Employees Guild Improving Sega (AEGIS-CWA) and it organizes with the Communications Workers of America.

There are already some provisions in place for workers as part of the contract, including a minimum pay increase of 4 percent in 2024, 3 percent in 2025 and 2.5 percent in 2026. There are also layoff protections, codified benefits like health insurance, a severance inclusion and a commitment to credit all workers on games.

“We’re hopeful that in the midst of extensive layoffs, workers across the video game industry will see organizing as a pathway to improve working conditions for all of us,” wrote Jasmin Hernandez, a member of AEGIS-CWA, in a statement provided to Engadget.

Sega wasn’t exactly happy about the push toward labor rights and unionization. The company faced an unfair labor practice complaint after it announced plans to lay off 40 percent of the union's bargaining unit. The company did lay off some of these people, as promised, but the union was able to reach an agreement to keep many workers employed. 

Labor is having a moment in the games industry. ZeniMax Workers United joined with the CWA last year to offer union protection to 300 quality assurance workers. Over 600 Activision QA testers have joined a union, making it the biggest worker-formed organization in video games. Avalanche Studios, Raven Software and several small development studios have all also unionized in the past year or so.

This article originally appeared on Engadget at https://www.engadget.com/sega-of-america-workers-have-ratified-their-union-contract-185906593.html?src=rss

Activision’s union, with 600 members, is now the biggest one in video games

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The number of unionized workers for Microsoft's video game subsidiaries keeps growing, and the latest group to join the pool is the largest one yet. Approximately 600 quality assurance workers at Activision have joined the Communications Workers of America (CWA), making them the biggest certified union in the US video game industry. They're also the first Activision workers to organize under the agreement between Microsoft and the CWA. If you'll recall, Microsoft agreed to respect the right of Activision Blizzard workers to unionize as part of its efforts to secure regulatory approval for its $68.7 billion takeover of the video game developer. 

CWA President Claude Cummings Jr. said Microsoft kept its promise to let workers decide for themselves whether they want a union. Part of Microsoft's pledge when it agreed to make a pact with the CWA was that it would take neutral approach during a union campaign, and the company said it didn't interfere or influence people's votes. 

Another element of their agreement was giving employees access to "innovative technology-supported and streamlined process for choosing whether to join a union," which includes not having to petition the National Labor Relations Board for an election. In this instance, the workers only had to sign a union authorization card or to vote online. According to The New York Times, 390 workers voted in favor of forming a union, while eight people were opposed to it. Around 200 more didn't cast their vote. 

In early 2023, Microsoft also recognized a union with 300 workers for Zenimax, the owner of Bethesda and another one of the company's video gaming subsidiaries, which was the largest one for the video game industry at the time. Those workers also unionized under the simpler process enabled by the company's agreement with CWA. By the end of the year, Microsoft agreed to hire 77 temporary QA contractors as full-time unionized Zenimax employees, which was a welcomed win for workers in an industry beset by layoffs.  

This article originally appeared on Engadget at https://www.engadget.com/activisions-union-with-600-members-is-now-the-biggest-one-in-video-games-143000869.html?src=rss

Activision’s union, with 600 members, is now the biggest one in video games

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The number of unionized workers for Microsoft's video game subsidiaries keeps growing, and the latest group to join the pool is the largest one yet. Approximately 600 quality assurance workers at Activision have joined the Communications Workers of America (CWA), making them the biggest certified union in the US video game industry. They're also the first Activision workers to organize under the agreement between Microsoft and the CWA. If you'll recall, Microsoft agreed to respect the right of Activision Blizzard workers to unionize as part of its efforts to secure regulatory approval for its $68.7 billion takeover of the video game developer. 

CWA President Claude Cummings Jr. said Microsoft kept its promise to let workers decide for themselves whether they want a union. Part of Microsoft's pledge when it agreed to make a pact with the CWA was that it would take neutral approach during a union campaign, and the company said it didn't interfere or influence people's votes. 

Another element of their agreement was giving employees access to "innovative technology-supported and streamlined process for choosing whether to join a union," which includes not having to petition the National Labor Relations Board for an election. In this instance, the workers only had to sign a union authorization card or to vote online. According to The New York Times, 390 workers voted in favor of forming a union, while eight people were opposed to it. Around 200 more didn't cast their vote. 

In early 2023, Microsoft also recognized a union with 300 workers for Zenimax, the owner of Bethesda and another one of the company's video gaming subsidiaries, which was the largest one for the video game industry at the time. Those workers also unionized under the simpler process enabled by the company's agreement with CWA. By the end of the year, Microsoft agreed to hire 77 temporary QA contractors as full-time unionized Zenimax employees, which was a welcomed win for workers in an industry beset by layoffs.  

This article originally appeared on Engadget at https://www.engadget.com/activisions-union-with-600-members-is-now-the-biggest-one-in-video-games-143000869.html?src=rss

Sega of America plans to lay off 61 workers

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Sega of America plans to lay off 61 employees in March, according to a California WARN (Worker Adjustment and Retraining Notification) report. Eurogamer and X user @WhatLayoff first reported on the government notice, which lists two separate job cuts classified as “layoff permanent” on March 8. It’s the latest chapter in a year-plus of brutal job cuts in the tech and gaming worlds.

California’s WARN Act, passed in 1988, requires employers to provide 60 days’ notice for upcoming layoffs — allowing the affected workers time to prepare. It applies to companies with at least 75 full-time or part-time workers and covers layoffs of 50 or more people within 30 days. It isn’t clear precisely how many workers Sega of America employs.

The WARN report lists separate layoffs (one of 12 and another of 49 workers) at two Irvine, CA-based Sega of America offices. The job cuts both have a “notice” date of January 8, and the reports were “processed” by California on January 29 with “effective” dates of March 8.

The Communications Workers of America (CWA) filed an unfair labor practice complaint against Sega in November after the publisher allegedly said it would lay off 80 unionized workers. At the time, the organization said Sega presented the proposal in a captive audience meeting, describing the circumstances as “a clear case of bad faith bargaining.”

The Allied Employees Guild Improving SEGA (AEGIS-CWA), the union representing Sega workers in the US, wrote on X Tuesday that the company announced the latest plans “a few months ago,” suggesting the layoffs posted in the WARN notice are part of the same roadmap. The union said Sega plans to outsource quality assurance and some localization work “in a move that would significantly impact our workforce.”

Sega hasn’t publicly confirmed the layoffs. Engadget reached out to a company representative, and we’ll update this article if we hear back.

The layoffs come less than two months after Sega said it would refresh its classics Crazy Taxi, Jet Set Radio, Shinobi, Golden Axe and Streets of Rage. Eurogamer notes the company’s Like a Dragon: Infinite Wealth, which launched last week, has been a high mark for the publisher.

This article originally appeared on Engadget at https://www.engadget.com/sega-of-america-plans-to-lay-off-61-workers-180100573.html?src=rss

NLRB finds that eBay and subsidiary TCGPlayer engaged in union-busting practices

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The National Labor Relations Board (NLRB) has found that eBay has violated the rights of unionized workers at TCGPlayer, a trading card marketplace owned by the company. This comes in response to charges filed by the Communications Workers of America back in March of this year. eBay has allegedly refused to recognize TCGPlayer’s worker union and it delayed participating in any bargaining practices and it has also refused to divulge any information with the group that the union is legally entitled to.

As part of its examination of the issue, the NLRB said that because eBay and TCGPlayer broke the law, the company must face legal consequences for its union-busting practices. The union, which officially formed in March following numerous anti-union actions from eBay and TCGPlayer, was denied representation during disciplinary investigations. The NLRB also found that eBay was changing working conditions and benefits without engaging in bargaining with the group. On top of that, eBay is said to have even enforced rules that would punish any workers’ elections to unionize.

While the NLRB lays out evidence of eBay’s union-busting practices, it did not officially issue a decision on the matter. The agency is still waiting on the company’s response to the issue. “Now that the board has come to a decision on eBay’s illegal practices, we hope the company will see the light, obey labor law and engage in good faith bargaining practices so that workers can secure a strong union contract,” Dennis Trainor, Communications Workers of America District 1 Vice-President, said in a statement. eBay could not be reached for comment.

This article originally appeared on Engadget at https://www.engadget.com/nlrb-finds-that-ebay-and-subsidiary-tcgplayer-engaged-in-union-busting-practices-205337429.html?src=rss

Microsoft agrees to union contract terms involving the use of AI

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Microsoft has agreed to union contract language regarding its use of artificial intelligence, which should give workers a voice when challenging how the technology’s deployed, as reported by Bloomberg. This is the first US instance of collective bargaining in Microsoft’s history and could be a huge step for those employed with the tech giant.

This came to pass as part of negotiations with the Communications Workers of America (CWA) union and involves contract language that covers a few hundred staffers at Microsoft’s game studio ZeniMax, which includes well-known subsidiaries like Bethesda and Arkane, among others.

The gist here is that the contract language incorporates Microsoft’s previously-announced AI principles, sort of a ten commandments type deal. The language dictates that AI systems will “treat all people fairly” and “empower everyone.” To that end, it will give employees covered under the contract an avenue of recourse should they feel that Microsoft isn’t holding up its end of the bargain. Microsoft even hired dozens of ZeniMax contract workers as full-time employees, potentially as a show of good faith.

“The goal is to ensure tools and technologies benefit rather than harm workers,” the contract states. The language stipulates that Microsoft must inform the CWA whenever AI or related automation technology is implemented in a way that could impact workers. If requested, the company must enter into good-faith negotiations regarding the change. This is a big first step, considering Microsoft’s massive play into the AI space via integration with OpenAI products.

This would be news on its own, given Microsoft’s former hesitance to engage with unions in any way, shape or form. However, there’s more. The company also entered into a partnership with the AFL-CIO, the country’s largest federation of unions. The entities struck a deal that ensures Microsoft will remain neutral in efforts by unions to encourage workers to join up.

The partnership also creates an “open dialogue” to discuss AI and how it impacts workers. The AFL-CIO calls this team-up the “first of its kind between a labor organization and a technology company.” Microsoft has committed to share information with labor leaders regarding impactful AI trends and consider “worker perspectives” when developing new technologies.

Why the about face? There’s a whole lot of uncertainty out there regarding artificial intelligence and how it will impact workers across multiple industries. It looks like Microsoft is setting itself up to be the “adult in the room” when compared to rival entities. It’s worth noting, though, that Microsoft shareholders rejected a proposal last week that would slow down AI spending until a risk-assessment project could be conducted.

This article originally appeared on Engadget at https://www.engadget.com/microsoft-agrees-to-union-contract-terms-involving-the-use-of-ai-173354643.html?src=rss

Microsoft agrees to union contract terms involving the use of AI

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Microsoft has agreed to union contract language regarding its use of artificial intelligence, which should give workers a voice when challenging how the technology’s deployed, as reported by Bloomberg. This is the first US instance of collective bargaining in Microsoft’s history and could be a huge step for those employed with the tech giant.

This came to pass as part of negotiations with the Communications Workers of America (CWA) union and involves contract language that covers a few hundred staffers at Microsoft’s game studio ZeniMax, which includes well-known subsidiaries like Bethesda and Arkane, among others.

The gist here is that the contract language incorporates Microsoft’s previously-announced AI principles, sort of a ten commandments type deal. The language dictates that AI systems will “treat all people fairly” and “empower everyone.” To that end, it will give employees covered under the contract an avenue of recourse should they feel that Microsoft isn’t holding up its end of the bargain. Microsoft even hired dozens of ZeniMax contract workers as full-time employees, potentially as a show of good faith.

“The goal is to ensure tools and technologies benefit rather than harm workers,” the contract states. The language stipulates that Microsoft must inform the CWA whenever AI or related automation technology is implemented in a way that could impact workers. If requested, the company must enter into good-faith negotiations regarding the change. This is a big first step, considering Microsoft’s massive play into the AI space via integration with OpenAI products.

This would be news on its own, given Microsoft’s former hesitance to engage with unions in any way, shape or form. However, there’s more. The company also entered into a partnership with the AFL-CIO, the country’s largest federation of unions. The entities struck a deal that ensures Microsoft will remain neutral in efforts by unions to encourage workers to join up.

The partnership also creates an “open dialogue” to discuss AI and how it impacts workers. The AFL-CIO calls this team-up the “first of its kind between a labor organization and a technology company.” Microsoft has committed to share information with labor leaders regarding impactful AI trends and consider “worker perspectives” when developing new technologies.

Why the about face? There’s a whole lot of uncertainty out there regarding artificial intelligence and how it will impact workers across multiple industries. It looks like Microsoft is setting itself up to be the “adult in the room” when compared to rival entities. It’s worth noting, though, that Microsoft shareholders rejected a proposal last week that would slow down AI spending until a risk-assessment project could be conducted.

This article originally appeared on Engadget at https://www.engadget.com/microsoft-agrees-to-union-contract-terms-involving-the-use-of-ai-173354643.html?src=rss

Microsoft is hiring dozens of ZeniMax QA contractors as unionized employees

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Game studios and publishers have collectively laid off an estimated 9,000-plus workers this year. Microsoft (which itself has laid off workers from Xbox teams in 2023) is bucking the trend to a certain extent by hiring dozens of ZeniMax quality assurance contractors as unionized employees.

The company agreed at the beginning of this year to formally recognize a union representing around 300 QA workers at ZeniMax Media, the parent company of Bethesda that Microsoft bought in 2021. As part of bargaining talks that have been ongoing since April, Microsoft has agreed to hire 77 temporary workers and incorporate them into the ZeniMax Workers United-CWA (Communications Workers of America) union.

Microsoft is hiring 23 of the workers as full-time, permanent employees with a pay increase of 22.2 percent. The other 54 workers are getting an immediate pay bump from $18 per hour to $20.75 an hour. Once the collective bargaining agreement is ratified, Microsoft will hire those workers as temporary employees.

According to the CWA, the new employees will now receive paid holidays and sick leave. The latter was previously only available if contractors lived in a jurisdiction that requires paid time off for illness. In addition, all of the workers will receive a copy of Starfield, the blockbuster game they had worked on. The CWA says it was not standard practice for contractors to get copies of the games they help to ship.

The CWA says the union will keep fighting for more contractors to have a pathway to permanent roles. “We look forward to continued good faith negotiations as we work towards a collective bargaining agreement,” Microsoft vice president Amy Pannoni told Bloomberg.

“We are now stronger at the bargaining table and are working to secure a fair contract for all workers — direct employees and contractors," Chris Lusco, associate QA tester and a member of ZeniMax Workers United-CWA, said in a statement. "We are all a part of ZeniMax Studio’s success and we all deserve our fair share. We hope to set a new precedent for workers across Microsoft and the entire gaming industry so that all workers, regardless of their employment status, are able to improve their working conditions through collective bargaining."

Last year, while Microsoft was attempting to win regulatory approval to buy Activision Blizzard, the company said it would remain neutral when the publisher's employees wished to unionize. A pact it reached with the CWA to that effect is set to come into force on December 12, 60 days after the Activision deal closed.

This article originally appeared on Engadget at https://www.engadget.com/microsoft-is-hiring-dozens-of-zenimax-qa-contractors-as-unionized-employees-180047283.html?src=rss

United Auto Workers seeks to unionize Tesla, BMW and other carmakers

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Fresh off successful contract negotiations with Ford, GM and Stellantis, the United Auto Workers (UAW) is seeking to unionize 150,000 workers across 13 automakers including Tesla, BMW, Mercedes Benz and Hyundai, it announced. "To all the autoworkers out there working without the benefits of a union: now it’s your turn," said UAW president Shawn Fain. 

The UAW said the organizing drive covers "more than a dozen" non-union automakers. It notes that many use a mix of full-time, temporary and contract employees "to divide the workforce and depress wages." The union cited one example of a Hyundai assembly plant employee who worked for a subcontractor for eight years starting at $9.25 an hour before finally becoming a full-time Hyundai employee. 

Non-union automakers, including VW, Nissan, Hyundai, Honda, Toyota and Subaru raised wages after the UAW's negotiations with the big three. VW, for one, bumped them to $23.42 an hour, rising to a maximum of $32.40. However, they "lag far behind UAW autoworkers in wages, benefits and rights on the job," the union said.

The UAW helped workers win a 25 percent raise over four years with the big three automakers, with the highest-paid Ford workers now earning $83,000 per year for a 40-hour work week (around $42 per hour). The union also gained reinstatement of cost-of-living allowances, shorter progression periods to top wages and a quicker conversion of temporary to in-progression (full-time) employees. 

Tesla employees have attempted to unionize the company before, and some alleged that the company fired them for that — though that claim was recently dismissed by the US National Labor Relations Board (NLRB). The NLRB has previously found that Tesla violated labor law by prohibiting employees from talking about workplace matters. Back in 2022, Elon Musk challenged the UAW to hold a vote at Tesla's California factory.

Other automakers aren't exempt from worker complaints, including startup Rivian. "The company likes to tell us we’re making the plane while flying it, and that explains a lot about the problems we have," said one Rivian chassis worker. "We have all sorts of safety issues. Turnover is terrible. Every group has a story about a new employee who did not make it to first break. The lack of safety, the low pay, the forced overtime, there are so many reasons we need to be union." 

This article originally appeared on Engadget at https://www.engadget.com/united-auto-workers-seeks-to-unionize-tesla-bmw-and-other-carmakers-100555374.html?src=rss