- Employees at Bethesda's Montréal studio have reportedly been told they'll receive the "smallest" severance pay legally possible.
- That's according to Bethesda workers union OneBGS, which Bethesda reportedly notified employees in Montréal of their termination on 17th July, detailing an exit package OneBGS calls "the smallest severance legally possible without bargaining with the union."
- The union also claims this contradicts what employees were told in a video call on 6th July: that they would be employed until September and that severance was being negotiated with the union.
- Employees were reportedly told they would receive eight weeks of pay in-lieu and any remaining vacation pay - which the union describes as the "bare legal minimum in terms of severance."
- In addition, it says employees would "immediately" lose access to their group benefits health insurance.
- In response, OneBGS has now filed a legal complaint against Bethesda for violating Canadian labour laws.
- Bethesda Montreal developers lost pay and insurance on the day of Fallout announcements.
- Bethesda was one of multiple Microsoft studios impacted by the mass Xbox layoffs affecting a total of 3,200 employees.
- Union representatives claimed that company management reduced severance pay to the legal minimum and canceled workers' health insurance without prior negotiations.
- The layoffs affected dozens of programmers, artists, designers, and benchmarkers.
- When the layoffs were announced on July 6, employees in the US and Canada were guaranteed job security and pay until September.
- However, Xbox management changed the terms and sent letters agreeing to pay only a minimum compensation package equal to eight weeks' pay, rather than engaging in full negotiations with the team.
- The UVW-CWA union supported their colleagues' statements and noted that Microsoft management is using the news about the future of Fallout 5 and The Elder Scrolls 6 to distract public attention from mass layoffs.
- Worker representatives are demanding that Xbox management be transparent in its decisions and completely eliminate bonus payments to senior managers during periods of staff reduction.
Bethesda's Montreal studio employees are reeling from layoffs that have left them with the smallest severance pay legally possible, according to the union OneBGS. The layoffs, announced on July 6, were part of a broader cut affecting 3,200 employees across Microsoft studios.
The union claims that employees were misled during a video call on July 6, where they were assured job security until September and that severance negotiations were ongoing. Instead, they received a termination notice on July 17, detailing a severance package of only eight weeks' pay and any remaining vacation pay, which the union describes as the bare legal minimum.
In addition to the inadequate severance, employees lost access to their group health insurance immediately. In response, OneBGS has filed a legal complaint against Bethesda, accusing the company of violating Canadian labor laws. The union stated, “Bethesda and Xbox leadership depend on our labour to make them millions, and yet when we do, we are disposed of. The cycle of workers paying for the mistakes of management ends here.”
The layoffs coincided with the announcement of the Fallout franchise launch event, raising concerns that Microsoft management is using this news to distract from the layoffs. The union is demanding transparency from Xbox management and the elimination of bonus payments to senior managers during staff reductions.
“The union claims Bethesda had assured employees in a July 6 call they would remain employed until September with severance negotiations, but later changed terms to eight weeks' pay and immediate loss of health insurance. OneBGS has now filed a legal complaint for violating Canadian labour laws, accusing management of 'disposing of' workers after profiting from their labor.”
Eurogamer.net
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