NC Union Established... Will It Spread Across the Gaming Industry?

Exterior view of NCSoft Pangyo R&D Center building

원본보기 아이콘

A labor union has been established at NCSoft, becoming the fifth union in the domestic gaming industry. The stagnant atmosphere spreading throughout the gaming sector has increased the likelihood of union formations.

The NCSoft branch of the National Union of Chemical, Textile, and Food Industry Workers announced its launch declaration on the 10th, marking the start of full-scale union activities.

The NCSoft branch emphasized, "NCSoft's core values of challenge spirit, passion, and sincerity have been undermined by a 'vertical, bureaucratic culture based on family-run management.'" They pointed out issues such as an executive-centered bureaucratic organizational culture, widespread illegal overtime work, recommended resignations, and standby orders.

The branch stated, "At the end of employees' challenges lies a sad ending of recommended resignation and standby orders. They are like 'temporary regular employees' hired for projects," adding, "Opaque evaluations guarantee endless terms for executives, making true change and growth difficult."

Song Garam, head of the NCSoft branch, said, "We established the union to protect our rights and effectively convey our voices to the company," and added, "As many people have trusted and continuously supported us, we will work with the branch to change NCSoft."

In 2018, a wave of union formations swept the gaming industry opposing the comprehensive wage system. Unions were formed in some game companies such as Nexon and Smilegate. Although there were movements to form unions in various places, they remained small-scale. This was due to the relatively free mobility in the gaming industry, where many chose to change jobs rather than endure dissatisfaction at their companies.

This time, the atmosphere surrounding NCSoft's union formation is different from 2018. The overall gaming industry is in a slump, making job changes less free than before. Game companies enjoyed a 'COVID-19 boom' and competed in salary increases over the past few years. However, since last year, growth has slowed, and the sharply increased labor costs have boomeranged back. Game companies have started tightening management and were the first to reduce hiring scales.

Even when the union wave blew in 2018, NCSoft ultimately did not form a union. However, recently, voices supporting the union have grown stronger. A consensus has formed inside the company that there are problems. Employee dissatisfaction is also high regarding the 108-fold average salary gap between CEO Kim Taek-jin and employees last year.

Besides NCSoft, the need for union introduction is being raised at various game companies.

Recently, the government proposed a labor hour reform plan allowing up to 69 working hours per week, which has sparked union formation flames in the gaming industry. Since the topic of 'crunch mode' (a term derived from the English word 'Crunch,' metaphorically describing the grinding work people endure) emerged, labor intensity at game companies is said to have decreased. However, long working hours still have a notorious reputation.

Even if the government's reform plan is applied, implementing the 69-hour workweek requires agreement between management and employees. Without a union, it is practically difficult for workers to voice their concerns to management. Naturally, calls for unions are growing louder.

A union official from a game company said, "Inquiries about union formation are coming mainly from small and medium-sized game companies," adding, "Issues such as improving working conditions and dissatisfaction with management are being raised."

© The Asia Business Daily(www.asiae.co.kr). All rights reserved.