Sega of America employees have made history by becoming the first workers at a major U.S. video game company to secure a union contract. The contract, ratified on Tuesday, provides around 150 workers with yearly wage increases and includes layoff protections such as notifications ahead of job cuts and severance benefits. This milestone comes after a wave of layoffs that have impacted thousands of video game company employees in recent months.
The minimum yearly pay increases outlined in the contract include 4% in 2024, 3% in 2025, and 2.5% in 2026. In addition to wage increases, workers will also receive advanced notice of any planned use of AI in the workplace, a commitment to continue hybrid work for at least six months, and codified benefits such as an annual bonus plan, retirement benefits, and health insurance.
Workers at Sega America voted to form a union last year, joining the ranks of other video game unions such as those at Raven Software, Blizzard Albany, ZeniMax, and Tender Claws. Layoffs have become a common occurrence in the gaming industry, prompting workers to push back against job cuts, low pay, and crunch work. Sega workers experienced layoffs earlier this year, with the company cutting 61 employees in March. Following negotiations with the company, the Sega union was able to save more jobs and offer severance to temporary workers.
The rise of video game industry unions reflects a growing trend of workers demanding better working conditions and protections. In recent months, high-profile layoffs have occurred at Sony’s PlayStation division, Microsoft’s Activision Blizzard company, and game development software maker Unity. The establishment of a union contract at Sega America sets a precedent for other video game companies to consider, potentially leading to more unions forming within the industry.
The contract between Sega America employees and the Communications Workers of America marks a significant step forward in the fight for workers’ rights in the video game industry. With wage increases, layoff protections, and advanced notice of workplace changes included in the contract, employees are better positioned to advocate for their interests and ensure fair treatment in the workplace. The union contract at Sega America sets a positive example for other video game companies to follow, potentially leading to improved working conditions and protections for employees across the industry.
As the first workers at a major U.S. video game company to ratify a union contract, Sega of America employees have paved the way for increased worker protections and better conditions in the gaming industry. The contract’s provisions for wage increases, layoff protections, and advanced workplace notice demonstrate a commitment to safeguarding workers’ rights and ensuring fair treatment in the workplace. With unions becoming increasingly popular in response to layoffs and other challenges facing the industry, Sega America’s union contract sets a positive example for other companies to consider as they navigate the evolving landscape of the video game industry.
