Bethesda is facing allegations from a union of breaching labor laws in Canada due to recent layoffs at its Montreal studio

The Bethesda union, known as OneBGS, has submitted a formal grievance concerning the company's alleged infringement of labor regulations in Canada. According to OneBGS, Bethesda issued dismissal notices to its Canadian workforce in Montreal on the same day it outlined its roadmap for future releases of the Fallout series, which coincided with recent layoffs from Xbox.

According to the union, although employees had been informed in a meeting on July 6 that their positions were secured until September as negotiations on severance took place, the termination letters contradicted these assurances. The letters specified that those laid off would receive only the minimum legally required severance, which includes eight weeks' pay along with any accrued vacation time, and also indicated an immediate loss of group health benefits.

The union expressed frustration, stating, "Bethesda and Xbox leadership rely on our labor for substantial profits, while workers are being unfairly treated. The trend of workers bearing the brunt of management's mistakes should end here."

An additional accusation was made against Xbox, alleging that they executed staff reductions unlawfully, bypassing the necessary dialogue with recognized labor unions. In response to these actions, an unfair labor practice charge was recently lodged against Microsoft, incorporating Xbox, ZeniMax Media Inc, Id Software, and Bethesda Game Studios.

Carmel Smyth, president of CWA Canada, mentioned to Game Developer, "The Communications Workers of America (CWA) and CWA Canada have jointly lodged complaints entailing unfair labor practices against Microsoft, asserting that the company terminated employees without proper notification or negotiation with the union, contravening legal obligations during ongoing collective agreement discussions."

Xbox acknowledged the situation, stating, "We value our employees' right to voice their concerns during this challenging period. We've engaged with the union to initiate effects bargaining and are dedicated to this process. Our focus remains on assisting those affected by these transitions while ensuring the organization's future resilience."