Union slams Microsoft for “unfair labor practice”, alleging Xbox “unlawfully” laid off staff

Xbox has been accused of “unlawfully” laying off staff without giving notice to, or discussing it with, recognized unions.

As detailed on the National Labor Relations Board (NLRB) website and reported by Game Developer, a ULP charge has been filed against Microsoft and its subsidiaries, including Xbox, ZeniMax Media, Inc, id Software, Bethesda Game Studios, for allegedly failing to provide information to labor union Communications Workers of America (CWA).

After weeks of speculation, the sweeping job cuts at Xbox were announced on July 6. The loss of 3,200 staff, around 20% of the organisation, was revealed via an internal memo that was also posted to X. CEO Asha Sharma also confirmed that five studios were to be divested.

Now, in a new filing, the CWA accused Microsoft of repudiation/modification of contract, refusal to furnish information, refusal to bargain/bad faith bargaining (including surface bargaining/direct dealing), and coercive actions, such as surveillance.

“The unions CWA and CWA Canada have jointly filed unfair labor practice complaints against Microsoft alleging the company has unlawfully fired people without giving notice to or discussing it with the union as the employer is legally obliged to do when we are in the middle of ongoing bargaining a collective agreement,” CWA Canada president Carmel Smyth told Game Developer.

“Basically, the employer can not arbitrarily change working conditions while it is engaged in negotiating with the union. We will continue to file legal challenges if necessary, and do all we can to defend the rights of Bethesda Game Studios workers.”

In a statement to Game Developer, Xbox said: “We respect our employees’ right to make their voices heard, and we recognize that this is a difficult time for many. We reached out to the union to begin effects bargaining and are committed to that process. We remain focused on supporting impacted employees through this transition while positioning the organization for long-term strength.”

This follows similar action from other unions. Union members at Bethesda Game Studios have already gone on strike after hundreds of members were affected by layoffs across Bethesda and ZeniMax. This includes 96 at id Software, 40 remote workers at BGS Dallas, 22 at BGS Austin, 213 at ZeniMax Online Studios in Maryland, and 166 at ZeniMax Media.