Union members have secured guardrails around generative AI usage, layoff protections, remote and hybrid work benefits, and more. Employees at World of Warcraft and Overwatch developer Blizzard have ratified a historic union contract that includes guardrails around AI usage, layoff protections, and remote and hybrid work benefits.
Union members represented by the Communications Workers of America (CWA) claimed the new contract—which covers 1,900 employees across the Microsoft subsidiary—sets a new industry standard. The union contract delivers wage increases, a three-day hybrid work week, remote working and disability accommodations, and grievance procedures. It also requires Microsoft to discuss, evaluate, and bargain over the usage of artificial intelligence in the workplace.
Notably, in an industry first, it also gives laid off workers the right to be "recalled" into open positions across any Blizzard bargaining unit within 14 months after their layoff was announced. An extra four weeks of severance for union workers has also been secured, irrespective of their tenure at the U.S. company.
CWA president Claude Cummings, Jr. said Blizzard union workers are "leading the way" for all Xbox studios.
"It's a new day at Blizzard, where greater power for workers is translating into more innovative games for players," he added. "I am so proud of CWA bargaining teams, taking on tough fights and winning strong contracts that set new standards for working people across our industries."
The contract has been ratified days ahead of BlizzCon—Blizzard Entertainment’s flagship gaming convention in Anaheim, California. The news also comes shortly after Microsoft confirmed plans to eliminate 3,200 roles across Xbox before the end of the current fiscal year, starting with deep cuts at ZeniMax Online Studios, id Software, and Obsidian.
Microsoft has conducted five major rounds of layoffs within its video game division since acquiring Activision Blizzard for $68.7 billion in 2023.
Speaking to Game Developer in July, a number of workers impacted by the layoffs claimed major Xbox studios are being subjected to death by a thousand cuts. They also lambasted Microsoft for failing to treat those impacted with dignity and respect.
In a memo sent to staff (and shared publicly) in July, Xbox CEO Asha Sharma said the division must "reset" after major bets on Xbox Game Pass and multiplatform releases failed to pay off.
The decision to carve through Xbox Game Studios has sparked widespread (and rather imaginative) protests from union members and supporters. CWA labor unions in Canada and the United States have also taken legal action against Microsoft for allegedly mishandling the layoffs.
In a statement sent to Game Developer, Blizzard president Johanna Faries said the ratification of the contract represents a significant milestone for the studio.
"We appreciate the dedication and engagement of our represented employees and the bargaining committees throughout this process, as well as every Blizzard employee whose work continued alongside it," said Faries. "The ratification of these agreements marks a significant milestone and reflects our shared commitment to continuing to work together in support of our teams and our players."