The first labor union for game developers in Ontario has been established at Joydrop, though reports indicate that the majority of employees who participated in the vote have been laid off
Update, September 19, 2024: Initially, it was reported that Joydrop/Mikutech was involved in an unfair labor practice issue with the Ontario Labor Board. However, these matters were reconciled without a formal hearing in March 2024. The details presented in this article have been revised accordingly.
Update, September 16, 2024: Joydrop issued a statement disputing several claims in this article, clarifying that the Ontario Labor Board allegations are not connected to its team's unionization efforts.
"These are distinct issues and resolutions were achieved," stated James Campbell, Joydrop's vice president. "Our team has been instrumental in establishing our reputation for excellence. Despite recent challenges faced by the gaming sector, as a small business, we must adjust to market dynamics to continue nurturing skilled professionals and meet client demands in this competitive environment."
Previously, Joydrop was described as facing three charges from the Ontario Labor Board, but the company asserts there is only one. The firm also indicates that the Zoom call about layoffs was independent of union activities and a reaction to market trends.
Joydrop has contested some financial statements made by Reilly, pointing out that his junior role meant he lacked comprehensive access to the financial data.
GamesIndustry.biz remains in contact with all relevant parties for more insights.
Original story, September 13, 2024: After employees at Joydrop established the first union for game developers in Ontario, a significant number of those who voted were reportedly dismissed two business days post-unionization.
Joydrop, under the umbrella of London-based Mikutech founded by Mark Mikulec in 2013, offers services like porting and codevelopment and counts Gearbox, Skybound, and Armor Games Studios among its collaborators.
Ex-employee Stephan Reilly shared with GamesIndustry.biz that 16 out of 17 staff members supported unionization, with the voting wrapping up on December 19, 2023. Following this decision, Mikulec allegedly terminated 14 of these employees.
Reilly reported that employees learned of their layoffs via a Zoom call on January 8, 2024, just as work was to commence post-holidays. The notification came the night prior, labeling the meeting as a "New Year meeting," set online to discuss new security protocols.
During the call, management cited "poor sales" as the justification for the layoffs, according to Reilly.
Following his dismissal, Reilly was contacted by another developer who mentioned that Mikulec purportedly inquired about hiring for Reilly's former role, with uncertainty about whether this referred to Joydrop or another venture.
GamesIndustry.biz has reached out to Mikutech for comments.
Mikutech faced an unfair labor practice case with the Ontario Labour Board, represented by The United Food and Commercial Workers of Canada. However, an agreement was reached by March 2024.
Before the layoffs, Joydrop was awarded a $40,000 Tech Alliance grant in November 2023 and was in line to receive grants from Ontario Creates and the Canada Media Fund, which some of the terminated employees had assisted in securing.
Reilly noted that Aaron Nguyen, a coordinator at Telefilm Canada, communicated with the developers via email regarding ongoing discussions about the impact of the labor practice charges on Joydrop’s eligibility for the CMF grants.
"Dismantling the team makes no sense if game development is your objective, and as the de facto lead game designer at Joydrop for our internal IP, we were in a prime position," Reilly commented. "There's substantial grant funding incoming, our publisher showed strong interest, investors were intrigued, we secured a $40,000 Tech Alliance Grant, and our team was functioning seamlessly."
"It seemed ideal for game creation, but it seems that might not align with Mark's objectives," Reilly added.
