A significant development in the video game industry took a somber turn as Ubisoft Halifax, the first unionized studio under the Ubisoft banner in North America, announced its abrupt closure. On December 18, approximately 60 employees at the Halifax studio voted to unionize with CWA Canada Local 30111, marking a pivotal moment for workers’ rights within the gaming sector. However, less than a month later, Ubisoft revealed that the studio would cease operations entirely, citing ongoing restructuring efforts that began two years prior.
The announcement of the closure came just after the studio had celebrated a successful unionization effort, an achievement that was seen as a beacon of hope for game developers advocating for better working conditions. Ubisoft Halifax, originally founded as Longtail Studios Halifax in 2010 and acquired by Ubisoft in 2015, is best known for developing the mobile title Assassin’s Creed Rebellion. The timing of the closure has raised eyebrows, particularly given the legal protections in Canada against layoffs related to union formation.
Carmel Smyth, president of CWA Canada, expressed deep concern over the situation. “Today’s news is devastating. We will pursue every legal recourse to ensure that the rights of these workers are respected and not infringed in any way,” Smyth said. The union is demanding clarity from Ubisoft regarding the rationale behind the closure, particularly as the company indicated it would provide details on its financial necessity only the following week.
In an unusual move, Smyth also pointed out that typically, companies planning significant layoffs would consult the union in confidence before making public announcements. “Ubisoft is highly unionized internationally; its managers are aware of that. Why they choose not to follow standard practice, we do not know,” she remarked, questioning the discrepancy in treatment between Canadian workers and their counterparts in more established union environments like France. “Why penalize Nova Scotia workers and their families? Do the right thing,” Smyth urged.
Jon Huffman, a member of the Ubisoft union organizing committee, voiced solidarity among workers despite the bleak news. “We’re obviously disappointed by this news and fully intend to support each other through this difficult time,” he stated, emphasizing the importance of unity in the face of adversity.
Tax Credits and Business Decisions
Ubisoft’s closure of its Halifax studio has prompted questions about the company’s financial strategies, especially considering the significant tax breaks it has received in Nova Scotia. According to publicly available data, Ubisoft has claimed around $11 million in tax credits across 67 projects in the province since 2017. The Digital Media Tax Credit allows businesses to claim substantial tax relief on qualifying expenditures, bolstering the financial attractiveness of operating in Nova Scotia.
Invest Nova Scotia, in a now-deleted post, highlighted factors that made Halifax an ideal location for Ubisoft, including access to local talent from nearby universities and a favorable business environment supported by tax incentives. These credits, while beneficial to studios, have sparked debate over the long-term implications for local workers, particularly in light of the recent closure.
Ubisoft Halifax was not only a part of the mobile gaming sector but also positioned in a strategic location between North American and European markets. The studio’s history, alongside the larger context of Ubisoft’s operations in Canada, raises concerns about the treatment of workers and the implications of corporate governance in the gaming industry.
As the gaming community absorbs the news of Ubisoft Halifax’s closure, it also reflects on the broader implications for labor rights within the industry. The studio’s sudden dissolution, coming on the heels of successful unionization efforts, serves as a stark reminder of the challenges workers face even when seeking representation. With calls for accountability from CWA Canada, the future landscape for unionized labor in the gaming sector is poised for scrutiny as this story unfolds.
