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Sega of America workers ratify first union contract at a major US gaming company

Around 150 unionized employees will benefit from annual pay increases, advance notification of layoffs, and other concessions.

TJ Denzer

March 27, 2024 12:40 PM

Image via Sega

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A major win has been achieved this week at Sega of America where roughly 150 union workers have ratified a contract for worker benefits and concessions, the first ever such union contract at a US gaming company. Experts believe this may be a landmark move in advancing worker protections in the gaming industry at a time when layoffs and cost-cutting are at an all-time high.

The completion and ratification of the Sega of America Union contract was finalized this week, as reported by Bloomberg. The contract covers roughly 150 workers in marketing, quality assurance, and other departments of Sega of America’s Southern California office. Under the contract, workers will receive a minimum yearly pay increase of 4 percent in 2024, 3 percent in 2025, and 2.5 percent in 2026. It also requires Sega to give notice ahead of layoffs and offer a minimum of two-weeks’ severance to employees affected, with a maximum cap of eight weeks.

Layoffs have been particularly rampant throughout the gaming industry in 2024, and Sega of America was among them. The company cut around 61 employees, or 10 percent of its workforce, back in January 2024. It’s not nearly as bad as Electronic Arts, where 670 employees were cut, or Sony, where 900 workers were shown the door. However, workers’ rights have been a hot button issue in gaming and quality assurance testers have especially been vocal in their need for protections in such a currently tumultuous industry.

With Sega of America’s Union having finalized this contract, it will be interesting to see how it affects ongoing talks throughout the industry about unionization and protections. Stay tuned as we continue to follow for further stories and updates.

TJ Denzer

Senior News Editor

TJ Denzer is a player and writer with a passion for games that has dominated a lifetime. He found his way to the Shacknews roster in late 2019 and has worked his way to Senior News Editor since. Between news coverage, he also aides notably in livestream projects like the indie game-focused Indie-licious, the Shacknews Stimulus Games, and the Shacknews Dump. You can reach him at tj.denzer@shacknews.com and also find him on Twitter @JohnnyChugs.