Monday, May 23, 2022

Activision Illegally Threatened Staff, Labor Officials Find

Josh Eidelson
Mon, May 23, 2022


(Bloomberg) -- US labor board prosecutors determined that Activision Blizzard Inc. illegally threatened staff and enforced a social media policy that conflicts with workers’ collective action rights, according to a government spokesperson. The finding is a setback for the company as it tries to fend off a unionization effort and finalize a $68.7 billion sale to Microsoft Corp.

Unless Activision settles, the Los Angeles-based regional director of the National Labor Relations Board will issue a complaint, the agency’s press secretary Kayla Blado said Monday. The NLRB enforces the National Labor Relations Act, the New Deal law establishing workers’ collective action and organizing rights.

Activision denied wrongdoing. “These allegations are false,” company spokesperson Jessica Taylor said in an emailed statement. “Employees may and do talk freely about these workplace issues without retaliation, and our social media policy expressly incorporates employees’ NLRA rights.”

The labor board is slated to count ballots on Monday from an election held among around 21 employees at Activision’s Raven studio in Wisconsin, which could establish a rare foothold for organized labor in the video game industry.

The allegations in the labor board case were brought to the agency last September by the Communications Workers of America, the same union organizing at Raven. CWA, which has increasingly focused in recent years on organizing non-union workers in the tech and video game industries, said in an emailed statement at the time that it was “very inspired by the bravery” of Activision employees and that it filed with the agency to ensure that violations by the company “will not go unanswered.” In an emailed statement Monday, CWA’s organizing director Tom Smith said the labor officials’ finding underscored the need for Activision’s CEO to change course: “In order to rebuild trust at Activision, Bobby Kotick needs to take the high road and start listening to workers instead of doing everything possible - including breaking the law - to silence them.”

Activision, the games-entertainment behemoth behind Call of Duty, has had a tumultuous year. It was hit last summer with an explosive complaint from California’s Department of Fair Employment and Housing, accusing the company of fostering a “bro culture” of sexism. Activision’s chief compliance officer, who served as Homeland Security adviser to President George W. Bush, called those claims “factually incorrect, old and out of context.” Workers there moved to unionize after news of job cuts in December 2021, which preceded weeks of strikes. In January, Activision agreed to the deal with Microsoft.

Complaints issued by labor board regional directors are considered by agency judges, whose rulings can be appealed to NLRB members in Washington, D.C., and from there to federal court. The agency can require remedies such as posting of notices and reversals of policies or punishments but has no authority to impose punitive damages. Jennifer Abruzzo, the labor board’s general counsel appointed by President Joe Biden, takes a much broader view of workers’ legal rights than her Trump-appointed predecessor. She has signaled she’ll seek to establish new precedents on numerous issues, including how much companies can restrict employees’ social media posts.


UPDATE 2-Videogame publisher Activision illegally threatened staff, U.S. agency says


Mon, May 23, 2022, 
By Kanishka Singh and Daniel Wiessner

WASHINGTON, May 23 (Reuters) - Videogame publisher Activision Blizzard Inc enforced a social media policy that conflicted with workers’ rights and illegally threatened staff in the policy's enforcement, a U.S. government agency said on Monday.

Unless Activision settles, the Los Angeles-based regional director of the National Labor Relations Board (NLRB) will issue a complaint, a spokesperson of the NLRB said in a statement.

The NLRB had been looking into allegations brought to the agency last September by labor union Communications Workers of America (CWA).

The announcement came on the same day that a small group of Activision employees at a Wisconsin studio that works on the popular "Call of Duty" franchise voted to join the CWA.

The union has increasingly focused in recent years on organizing non-union workers in the tech and video game industries.

The "Call of Duty" videogame maker said on Monday the allegations were false.

"These allegations are false. Employees may and do talk freely about these workplace issues without retaliation, and our social media policy expressly incorporates employees' NLRA rights," a company spokesperson said.

"Our social media policy explicitly says that it ‘does not restrict employees from engaging in the communication of information protected by law, including for example, rights of employees in the United States protected by the National Labor Relations Act,'" the spokesperson said.

In recent months, Activision Blizzard workers have banded together to try to influence the company's future, including staging a walkout and circulating a petition calling for the removal of Chief Executive Officer Bobby Kotick. Microsoft Corp announced plans to acquire Activision in January.

The company's labor issues come as it also faces claims from a California civil rights agency of widespread discrimination against female employees. Activision has denied wrongdoing and said the agency did not thoroughly investigate workers' discrimination complaints before suing.

Activision had faced similar claims from the U.S. Equal Employment Opportunity Commission, which it settled in March for $18 million.

(Reporting by Kanishka Singh in Washington and Daniel Wiessner in New York; Editing by Lisa Shumaker)

NLRB accuses Activision Blizzard of violating labor law by threatening employees

Kris Holt
·Contributing Reporter
Mon, May 23, 2022

Mike Blake / reuters


A regional director for the National Labor Relations Board has determined there's "merit to the allegations" that Activision Blizzard violated the National Labor Relations Act. It says there are indications the company and its subsidiaries Blizzard Entertainment and Activision Publishing maintained an "overbroad social media policy" and that Blizzard threatened employees who were exercising their right to organize. The findings were first reported by Bloomberg and confirmed to Engadget.

“These allegations are false. Employees may and do talk freely about these workplace issues without retaliation, and our social media policy expressly incorporates employees’ NLRA rights," an Activision Blizzard spokesperson told Engadget in a statement. "Our social media policy explicitly says that it ‘does not restrict employees from engaging in the communication of information protected by law, including for example, rights of employees in the United States protected by the National Labor Relations Act.’”

If the company does not settle the case, the NLRB's Los Angeles office will file a complaint. That will lead to a hearing in front of an NLRB Administrative Law Judge (unless a settlement is reached in the meantime).

While the agency can't impose punitive measures against a defendant, it can require them to reverse punishments or policies; reinstate fired workers and provide backpay; or post notices containing promises not to break the law. An NLRB regional director can petition a district court for a temporary injunction if workers' rights have been violated. The agency can also file cases in federal court.

The allegations were made in September by the Communications Workers of America (CWA). It accused Activision Blizzard in an Unfair Labor Practice filing of telling employees they can't discuss wages, hours or working conditions; enforcing an "an overly broad social media policy" against workers who "engaged in protected concerted activity" (i.e. their right to organize or discuss unionization); and threatening or suveilling such employees.

The news comes on the same day that votes will be counted in a Raven Software union election. Quality assurance workers at the Activision Blizzard studio, who are organizing with the CWA as the Game Workers Alliance, got the go-ahead from the NLRB to hold a vote. If they're successful, the group of 21 or so workers will form the first union at a AAA game publisher in North America, despite the company's reported attempts to stymie their efforts.

Activision Blizzard's labor practices came under intense scrutiny last July when California’s Department of Fair Employment and Housing accused it in a lawsuit of fostering a "frat boy" culture where sexual harassment and discrimination were present. Other suits have been filed against the company since, including a wrongful death case.

In the wake of the initial suit, Activision Blizzard workers formed an employee advocacy group called A Better ABK. They used social media to organize and share their concerns and demands publicly.

The company is the subject of a proposed $68.7 billion takeover by Microsoft. Its shareholders voted in favor of the deal last month, but regulatory approval is still required.

Update 5/23 3:10PM ET: Added Activision Blizzard's statement.

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