Big Tech's 'No Union' Management Collapses... MS Also Faces Unionization (Comprehensive)

[Asia Economy Reporter Yujin Cho] The 'no-union management' principle of major US big tech companies is breaking down. Following Amazon and Apple, Microsoft (MS) has seen the formation of its first labor union in the US since its founding. This is due to the strong voices of workers demanding wage increases amid a worker-favorable culture formed during the COVID-19 pandemic and recent inflation. With simultaneous regulatory pressures from authorities and internal conflicts such as union establishment overlapping, 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 stated that a majority of the 300 workers across four locations including Maryland and Texas supported the union formation, but did not disclose the exact count.

This is the first time MS employees at US workplaces 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 reportedly already undergoing unionization efforts prior to the acquisition.

MS has agreed to recognize the union and plans to soon begin collective bargaining with it. The company stated, "We look forward to productive negotiations for establishing a collective bargaining agreement with the union."

[Image source=Reuters Yonhap News]

MS's favorable stance toward union formation contrasts with other big tech companies that refuse to acknowledge the existence of unions. CWA President Liz Shelton pointed out, "MS kept its promise to employees to recognize the union," adding, "Other video game companies and big tech firms have opposed unionization efforts by attacking employees, systematically obstructing union formation, and undermining fairness."

Apple and Amazon, which have maintained no-union management, also launched unions for the first time in their history last year but faced difficulties due to their strong opposition to union formation. Apple formed its first union in the US in June last year, joining the International Association of Machinists and Aerospace Workers (IAM), one of the largest industrial unions in the US. Union formation efforts are also underway at 24 Apple stores, including in Georgia and Atlanta, among over 270 Apple stores in the US, indicating that unionization movements are spreading further.

At Amazon, the world's largest e-commerce company, the first logistics warehouse union was established in Staten Island, New York, in April, and unionization efforts are currently underway in several locations focusing on warehouse and delivery workers. However, the expansion of union formation has been hindered by the company's organized interference, such as setting up polling stations in public places. Amazon CEO Andy Jassy sparked controversy by openly opposing unions in a media interview, stating, "If a union is formed, employees' power may be reduced," and "It is better without a union."

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