MS's First Ever Union Formation... Big Tech's 'No-Union Management' Broken

[Asia Economy Reporter Yujin Jo] The 'no-union management' principle of US big tech companies is breaking down. Following Amazon and Apple, Microsoft (MS) has also launched a labor union for the first time since its founding. This is due to the strong voices of workers demanding wage increases amid the worker-favorable culture formed during the COVID-19 pandemic and recent inflation. Amid simultaneous regulatory pressures from authorities, internal conflicts such as union establishment are overlapping, and big tech companies are expected to face a challenging year.

On the 3rd (local time), according to the Wall Street Journal (WSJ) and others, the Communications Workers of America (CWA) announced that employees of MS subsidiary game company ZeniMax approved the establishment of a union. CWA announced that a majority of the total 300 workers in four locations including Maryland and Texas supported the union establishment, but did not disclose the exact count.

This is the first time MS workers in the US have formed a union. The union formation was led by employees conducting game quality testing at ZeniMax. This union is expected to become the largest labor organization in the US video game industry. ZeniMax, acquired by MS in 2021, was known to have had a unionization movement underway before the acquisition.

AP News reported that MS has agreed to recognize the union establishment. The company stated, "We look forward to productive negotiations for a collective bargaining agreement."

[Image source=Reuters Yonhap News]

MS’s favorable stance toward union establishment contrasts with other big tech companies that refuse to acknowledge unions. Apple and Amazon, which have maintained no-union management, also saw their first unions launched last year but experienced difficulties due to opposition from management. Apple formed its first union in the US in June last year and joined the International Association of Machinists and Aerospace Workers (IAM), one of the largest industrial unions in the US. Unionization efforts are also underway at 24 Apple stores, including in Georgia and Atlanta, among over 270 Apple stores in the US, indicating further expansion of union movements.

At Amazon, the first logistics warehouse union was established in April in Staten Island, New York, and unionization efforts are ongoing in several locations focusing on warehouse and delivery workers. However, union establishment efforts have been hindered by organized management interference, such as setting up polling stations in public places. Andy Jassy, Amazon CEO, sparked controversy by openly opposing unions in a media interview, stating, "If a union is formed, employees’ authority may be reduced," and "It is better not to have a union."

This content was produced with the assistance of AI translation services.