Sega of America Union Workers Secure Pay Increase, Other Benefits in Landmark Contract Ratification

By John Lopez

Mar 27 2024, 15:45 PM EDT

Workers at Sega of America have successfully ratified their first union contract, marking a landmark development for labor rights in the gaming sector.

The agreement, negotiated by the AEGIS-CWA union, promises a range of benefits for around 150 employees at Sega's Southern California offices. The initiative comes as the company has recently faced unfair labor practice claims and carried out a wave of layoffs.

Sega of America Union Workers Ratify Contract

IGN tells us that the contract includes raises for all unit members, with minimum yearly pay increases of 4% in 2024, 3% in 2025, and 2.5% in 2026. Additionally, workers will benefit from Just Cause protections, layoff protections, and a commitment to credit all workers on the games they contribute to.

Their move towards unionization began last year when Sega of America workers expressed desires for better pay, improved benefits, and workload balance. Following legal recognition in July, the union continued negotiations despite facing challenges such as layoffs earlier this year.

First in the Gaming Sector

The ratified contract marks a significant milestone for workers in the video game industry, with Sega of America becoming the first major North American gaming company to secure a union contract.

This victory could pave the way for further unionization efforts across the industry as workers seek tangible improvements in their working conditions. With workers at other major studios also pushing for contracts, the gaming industry could see significant shifts in labor dynamics shortly.

Significant progress has been achieved in union representation in the gaming sector as early as 2023, with notable companies such as ZeniMax, now owned by Microsoft, witnessing unionization among their QA workers.

This trend has expanded to include Activision Blizzard employees following Microsoft's neutrality agreement. Employees from Cyberpunk 2077 maker Projekt Red have also organized for representation.