Sega of America has formally endorsed its union contract. This move positions it among the pioneering major video-game companies in North America to embrace unionization, potentially setting a precedent for similar initiatives within the industry.
The Sega logo is pictured at the company's booth during the Tokyo Game Show in Chiba Prefecture on September 30, 2021. (Photo: CHARLY TRIBALLEAU/AFP via Getty Images)
Sega Embraces Unionization
Sega of America's contract was solidified following a resounding vote in favor of unionization by workers last year. It encompasses approximately 150 employees across various departments within the company, spanning brand marketing, games as a service, localization, sales, and quality assurance.
Under the Allied Employees Guild Improving Sega (AEGIS-CWA) banner, the union forms a collaborative alliance with the Communications Workers of America (CWA), as reported by Bloomberg.
Several provisions have already been outlined in the contract to benefit workers, including guaranteed minimum pay raises of 4 percent in 2024, 3 percent in 2025, and 2.5 percent in 2026.
Additionally, the agreement includes safeguards against layoffs, provisions for health insurance, incorporation of severance packages, and a commitment to crediting all employees involved in game development projects.
In a statement shared with Engadget, Jasmin Hernandez, a member of AEGIS-CWA, expressed optimism that the ongoing movement towards labor rights and unionization within the video game industry could lead to improved working conditions for all workers.
Union Wins, Ongoing Challenges
While the push for labor rights and unionization faced resistance from Sega, the company encountered an unfair labor practice complaint following its announcement of layoffs affecting 40 percent of the union's bargaining unit.
In April, a significant majority of 200 employees spanning various departments within the company voted decisively in favor of unionization, leading to the establishment of the AEGIS-CWA under the CWA. However, recent reports suggest that Sega is considering laying off 80 of these unionized workers.
Negotiations between the union and Sega have been ongoing since last year, when Sega purportedly presented a proposal to gradually phase out all temporary employees, aiming to relocate their work to the company's offices in Europe and Japan by February 2024.
These temporary employees constitute 40 percent of the union's bargaining unit and are primarily engaged in critical roles such as quality assurance and localization, which are deemed pivotal for Sega's operations.
Amidst the layoffs, the union managed to secure an agreement that preserved the employment of numerous workers.
There's a burgeoning movement for labor rights within the gaming industry. ZeniMax Workers United collaborated with the CWA in the previous year to extend union protection to 300 quality assurance workers.
Furthermore, over 600 QA testers from Activision have united under a union banner, establishing it as the largest worker-formed organization in the video game sector.
Additionally, in the past year or so, Avalanche Studios, Raven Software, and various small development studios have also embraced unionization.
