The thousands of layoffs in the video game industry since 2023, along with labor issues in recent years, have led workers to organize and opt for unionization. In the case of SEGA of America employees, there was already a precedent of union formation, but today history was made with the ratification of their employment contract.
SEGA of America Ratifies Collective Bargaining Agreement for Unionized Workers, the First of Its Kind in the USA
Reports from Bloomberg journalist Jason Schreier and independent journalist Stephen Totilo shared details about the ratification of the collective bargaining agreement for unionized workers at SEGA of America, which is historic because it is the first of its kind at a major video game company in the United States. Regarding this, the contract provides job security for over 150 workers in the design, testing, and marketing departments, sectors that have been particularly affected by the recent wave of layoffs in the industry.
A new milestone for unionizing game workers in North America: the first contract
— Stephen Totilo (@stephentotilo) March 27, 2024
About 150 designers, testers and others at Sega of America’s newly-formed union have struck a deal with management
Includes:
- raises
- layoff severance
- hybrid work commitment for 6 months min. pic.twitter.com/QgVHokTjFL
According to the information, the contract for unionized workers at SEGA of America, approved by the company's Japanese leadership and its North American headquarters, guarantees minimum wage increases of 4% for 2024, 3% for 2025, and 2.5% for 2026.
Additionally, SEGA of America employees who are union members secured approval for a 6-month hybrid work period (home-office). At the same time, there is important information as the labor organization does not prevent layoffs but does provide certainty in such situations. In this case, SEGA of America will have to provide considerable advance notice of a layoff and will be required to provide severance pay to terminated employees for a minimum of 2 weeks of work and a maximum of 8 weeks.
Gradually, and in light of the prevailing situation in the gaming labor sector in the USA, more workers are motivated to form a union to protect their jobs and interests, nothing uncommon in a country with multi-billion-dollar industries operating with labor organizations such as film, TV, and professional sports.
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