U.S. union formally acknowledged by Microsoft
In a groundbreaking move for the tech and gaming industry, employees at ZeniMax Studios, the company behind popular video games such as The Elder Scrolls and Fallout, have formed the first labor union at a Microsoft US workshop. This historic milestone marks a significant step forward in securing collective bargaining rights and meaningful protections for workers at a major global technology and entertainment company.
The union, known as ZeniMax Workers United-CWA, has negotiated a collective bargaining contract with Microsoft, which includes substantial improvements in wages, work-life balance, job security, and disability accommodations. Some key aspects of the contract include:
- A guaranteed 10% wage increase over two years, addressing previous periods of wage stagnation and lack of promotions.
- Elimination of exploitative "crunch time" practices, requiring advance notice for overtime and capping excessive mandatory overtime.
- Enhanced job security provisions such as layoff protections, severance packages, recall rights, career transition services, and bridging prior temporary work into permanent employment terms.
- Expanded disability accommodations and clearly defined job roles, promoting inclusion and fair professional development.
This contract sets a precedent as the first formal labor contract negotiated with Microsoft in the U.S. video game industry context, affirming that large tech companies can be held accountable to unionized workforces. It follows and helps inspire other unionization efforts across Microsoft’s gaming ecosystem, including Raven Software (Activision Blizzard subsidiary), Bethesda, World of Warcraft teams, and Blizzard’s narrative and cinematic teams, leading to nearly 3,000 unionized gaming workers within Microsoft by mid-2025.
The unionization initiative at ZeniMax Studios has faced company opposition, according to the Communications Employees of America (CWA). However, Microsoft has agreed to remain neutral in labor fights as part of its efforts to win support for its acquisition of Activision Blizzard. The company expects to engage in good faith negotiations as they work towards a collective bargaining agreement.
This achievement is part of a growing movement within the gaming industry to address long-standing issues like low wages, job insecurity, unpaid overtime, and layoffs. The contract secured by ZeniMax workers offers a concrete example that organized labor can bring meaningful change even in high-profile tech and entertainment companies, suggesting a shift toward better labor standards industry-wide.
While a Microsoft representative declined to discuss how the new union at ZeniMax Studios might impact operations at the company, it is clear that this development will have far-reaching implications for the tech and gaming industry. As more workers demand better working conditions and fair compensation, it is likely that we will see more unionization efforts across various companies in the sector.
[1] https://www.cwa-union.org/news/zenimax-workers-united-cwa-announces-tentative-agreement-with-microsoft [2] https://www.reuters.com/technology/microsoft-zenimax-workers-form-first-us-union-at-tech-company-2022-04-27/ [3] https://www.wsj.com/articles/microsoft-zenimax-workers-form-first-union-at-u-s-video-game-studio-11651166447 [4] https://www.gamesindustry.biz/articles/2022-04-27-zenimax-workers-unite-cwa-announce-tentative-agreement-with-microsoft
- The historic union formation at ZeniMax Studios, while facing opposition, has inspired other business entities within the Microsoft gaming ecosystem to follow suit, potentially leading to over 3,000 unionized workers across various teams by mid-2025.
- The collective bargaining contract between ZeniMax Workers United-CWA and Microsoft, a first for the U.S. video game industry, emphasizes improvements in wages, work-life balance, job security, and disability accommodations, offering a significant example of how organized labor can bring about change in high-profile tech and entertainment companies.
- This development signifies a shift in the general-news landscape, as workers within the tech and gaming industry increasingly focus on addressing long-standing issues such as low wages, job insecurity, unpaid overtime, and layoffs, potentially initiating more unionization efforts across the sector, with far-reaching implications for the tech and gaming industry as a whole.
