Unions in the video games industry in Quebec?

This is likely to be the most unpopular thing I've ever written on Linkedin, but it is definitely work-related, and it must be said.


Today, we've received the news that there is a strong effort towards unionization in the video games industry that's now affecting our province of Quebec.


This is terrible news.


Granted, I'm an entrepreneur, of course, I would think that. But I've always thought this way, even back when I was a minimum wage employee. Unions are NOT the answer.


The problems with unions:

  • They're the proof that employer-employee communication has failed -- they're like a couple who'll only talk to each other through a lawyer, yet live in the same house
  • They're the proof that employees see everything that's wrong with their personal situation as the responsibility and fault of the employer, something that shows how little they know about the employer's situation
  • They don't acknowledge the fact the employer is just as much (if not more) a victim of changing market conditions (statistically, employers take the vast majority of the hits as they cushion and shelter their employees from the blows)
  • They are predicated on the belief that employers are sitting on vast amounts of resources that, typically, simply do not exist
  • Their appeal is that they promise a fairer redistribution of these imaginary resources
  • They negotiate on behalf of employees, but as was clearly demonstrated by recent talks in education and healthcare, they often do not actually represent their employees' interests and lead to outcomes where none of the parties feel meaningful progress was achieved even if both parties actually agree that such 'low hanging fruits' actually existed to begin with
  • They introduce heavier processes, and for SMBs, this can be enough to annihilate whatever small profit margins a business actually generates (if any)


In other words, unions don't really provide employees with what they actually want, foster a belligerent work environment, and assume entrepreneurs should pay for it all... using capital that doesn't exist.


Don't get me wrong, there are times in history, and industries, where unions were/are necessary. But in 2024, in the video games industry sector in Quebec, this is simply not factually correct.


Saying so doesn't mean that employees 'have it easy', but merely that unions can't lead to actual viable gains. There are a number of better ways to open a communication channel around these issues that are far superior to unions.


The problem we're seeing now is that a lot of businesses are losing money, and not the other way around. Many of us are paying to create jobs rather than generating profit. There's no reward left for many entrepreneurs, and unionization is only going to make it worse.


Let's also remember that the CTMM is now being phased out partially, which is further money that Quebec businesses will not have access to.

Considering we know that the vast majority of studios in Quebec are running at a deficit before considering CTMM (University of Sherbrooke), this actually supports the thesis that most studios are going in the red in 2024, and that adding further pressure beyond changing market conditions and CTMM changes is more than likely to cause heavy disruptions.


I realize a lot of people not 'in the know' of how things actually are will think these are empty threats, but factually, unions are going to cause a LOT more studio closures, and I'd like to think that having no job is inherently worse than having whatever job conditions you currently have. You're free to disagree of course, or to move to an industry where job conditions are better.


The video games industry isn't choosing these conditions, they are the result of the product demand in a 'hit-based' industry. In other words, they are determined by whoever buys the games, no who pays you to do them.


Let's look at things from the perspective of employers/entrepreneurs for a second.


Hypothesis #1 - Employer is 'rich'

If the employer is rich, and is going to get much less $, why would they still keep on going? Clearly, they have the ability to 'wait it out'.

Closing the studio to retire (even if only temporarily) is by far the superior outcome.


Hypothesis #2 - Employer is not 'rich'

If the employer is not rich, and needs to pay out more $, then they're likely running a studio at a deficit (in fact, statistically, they are). Effectively, they're paying, out of pocket, to create jobs, with no actual rewards in sight.

Closing the studio to become an employee is the better outcome.


A little known fact about entrepreneurship is that, generally speaking, entrepreneurs actually make less than employees. In fact, throughout their career, entrepreneurs are to make 4% - 15% less money on average (HEC Paris).

So, we're not in it for the money it seems. But if we end up LOSING money, as is more than likely in 2024, we're more than likely going to quit just the same.

These are not threats, they're a candid look at the risk/reward evaluation that many entrepreneurs are facing today.


Bear in mind, none of my employees has been through overtime in years, and our average work week sits below 37 hours.


Compensation has increased faster than inflation every year since we created the studio in 2017.


In other words, I'm not even 'the bad guy', and even I think unions are a terrible idea.


Let that sink in...



https://www.polygon.com/24145830/game-workers-unite-csn-union-2024

Tim Hargreaves

Enterprise Support Manager at Amazon Web Services (AWS)

6 个月

I think saying that “Unions are X” is the same as saying “Studios/employers are Y”: it’s too broad a brush to describe organizations (both unions and employers) that can be operated well and fairly or be self serving and petty. I was a union member for 7 years, and for the most part they did not represent my interests well, at times for their own interests (trying to poach a class from another union). I’ve also worked in the private sector at places where a union was totally unnecessary, and places where it would have really helped myself and others. Which I think makes it important to note that in order to unionize, the employees at their specific company need to vote for it. Rather than saying we should or shouldn’t unionize for the industry as a whole, let’s have democracy run its course in a legal and fair process.

Rami Ismail

Games Industry Studio & Project Advisor, Indie Game Developer, Public Speaker, Consultant, Agent, and Mentor. Making games is hard enough already.

6 个月

"They're the proof that employer-employee communication has failed -- they're like a couple who'll only talk to each other through a lawyer, yet live in the same house" This is what you do in uneven or struggling relationship, which is exactly where the industry seems to be right now. The lawyer isn't there because anyone wants that, but because employers overwhelmingly have lost their sense of responsibility. The employer is responsible for the company, the communication in the company, and the status of the company. That's the job you take as a leader. If your company wants to unionize, *leadership* has failed at creating conditions in which unionisation is not the preferable solution.

I don't know your company's particular conditions and I agree that unions will bring other issues, but I've seen awful practices in this industry. Forced overtime, broken profit-sharing promises, job insecurity, and a lack of pensions and retirement benefits. We can even see the conversation these days about workplace security and equality is questionable in major studios here in Quebec. Your willingness to discuss this matter is commendable and a good sign that you do care about this whole matter. (And if I recall, we both started in one of those pretty awful places). Now, this is not always the case. I believe the whole gaming industry will have to address these issues if they want to avoid unions, if not, unions will be the "default" solution... Other industries seem to be more capable of handling these problems and providing better benefits for their employees. What's weird is, as a whole, the gaming industry is quite profitable, but it looks like there's a major issue in how this profits is shared with its workers, artists and creators.

Jade Yhap

Business Development, Marketing, and Interactive Digital Media Advocacy

6 个月

I appreciate your perspective as an entrepreneur and a small business owner. The breakdown in communication is definitely a huge reason an industry would look to unionize. Yet, this action is also targeted not at the SMBs, but the larger corporations which have much different margins than their smaller counterparts. Unionization could indeed affect these smaller studios more, but the smaller studios, like your own, tend to have a better work/life balance and communication with the leaders. When over 75% of the games industry employment in Canada is held by large to very-large firms (as per the Entertainment Software Association of Canada's report on the gaming industry of 2021), and those firms are going through mass layoffs and record revenues, you can see how discontent can form. Revenue is not profit, but without clarification on the company's health, developers only see a big number and a line of laid-off colleagues. They need clear communication to understand what those numbers truly mean, and they believe unionizing is their answer for their lack of transparency.

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