Microsoft CEO Satya Nadella testified in court in response to the Federal Trade Commission’s attempt to block the $69 billion deal between Microsoft and Activision Blizzard. The court case, which took place in San Francisco on June 28, 2023, came after a group of approximately 600 software testers at Activision formed the U.S. video game industry’s largest union known as Activision Quality Assurance United-CWA.
This union was established under a new labor agreement negotiated following Microsoft’s acquisition of Activision in October 2022. One of the key provisions of this agreement was Microsoft’s requirement to remain neutral regarding employees interested in unionizing and to provide adequate lines of communication and information for those workers. This development came after Microsoft had laid off 1,900 workers in its gaming division in January.
The union, representing employees from California, Texas, and Minnesota, aims to secure higher wages and more career opportunities for QA testers. The workers joined forces with the Communications Workers of America (CWA) to strengthen their alliance, a move that was commended by CWA President Claude Cummings Jr. for Microsoft’s support of workers’ rights to decide for themselves on union representation.
Labor organizing within the tech industry has been on the rise, with QA workers at Activision feeling undervalued in comparison to software engineers. Prior to the acquisition, QA workers at Activision’s Albany branch had also formed a union, reflecting a growing trend in the industry. As the case continues to unfold in court, the outcome will have significant implications for labor rights within the tech and gaming sectors.
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