Union Accusations Against Sega: Alleged Threat Of Mass Layoffs Uncovered

Sega of America, part of Sega Sammy Holdings Inc - ADR (OTC: SGAMY), faced accusations of attempting mass layoffs in retaliation for employees' unionization efforts, as detailed in an unfair labor practice complaint filed by the Communications Workers of America.

According to Kotaku, the complaint alleged Sega forced employees into a meeting where they were informed of impending job offshoring to Japan and Europe, impacting about 40% of unionized staff, primarily in quality assurance and localization roles.

See Also: Sega Of America Workers Officially Unionize Following Successful Vote

The Allied Employees Guild Improving Sega (AEGIS-CWA), formed earlier in the year and representing more than 200 employees, received a proposal from Sega to phase out temporary workers by February 2024, breaching standard negotiation procedures with the union.

Instead of engaging in negotiations with the union, Sega directly informed employees of the layoffs in a mandatory meeting, potentially violating rules against bypassing union involvement. The downsizing would affect around 80 employees, which accounted for 40% of the entire group.

Despite the filing with the National Labor Relations Board, the resolution might not prevent imminent layoffs.

The situation happened amidst industry-wide cost-cutting measures, with gaming companies aiming to reduce expenses and downsize.

Meanwhile, the union demanded Sega to convert temporary positions to permanent ones and return to negotiations transparently and fairly.

Read Next: Gaming Industry Workers Unite: A Look At Unionizations Efforts At Activision Blizzard And Other Publishers

Photo: IB Photography on Shutterstock.