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The Unions, Once Again, Side With Microsoft And VS The FTC On The Activision Deal

July 20, 2023 by Ryan Parreno

No less than Randi Weingarten interjected herself in this case.

We have an interesting series of tweets in reaction to the FTC losing their case vs the Microsoft – Activision deal. As you will see, it really demonstrates how the stakes of this deal go beyond what gamers see is important for themselves.

Last July 11, the Communications Workers of America (CWA) sent this tweet:

“Breaking! We applaud today’s decision to deny the Federal Trade Commission’s request for a preliminary injunction to prevent Microsoft from closing its deal to acquire Activision Blizzard.

By accepting Judge Corley’s decision and allowing this merger to move forward, the Federal Trade Commission has an opportunity to transform the video game and technology labor market by providing a clear path to collective bargaining for almost 10,000 workers.”

Now, not all who followed this story may remember, but unions were among the earliest supporters of the Microsoft Activision deal. While some may assume that unions would oppose any move that would make big companies even bigger, these unions were thinking more strategically.

What they saw in particular was that Activision had been harsh towards any attempts of their workers to unionize. In contrast, Microsoft had promised, and demonstrated, a willingness to recognize and negotiate with unions.

The CWA is joined in this by the AFL-CIO, AKA the American Federation of Labor and Congress of Industrial Organizations. In other words, the AFL-CIO is a larger organization made of various other unions. The currently striking WGA and SAG-AFTRA are part of the AFL-CIO, just like the CWA, and other unions in the games industry.

Both the AFL-CIO and CWA expressed their support for the deal last December of last year and February of this year, respectively. But today, some major movers and shakers in that world became part of the conversation.

American Federation of Teachers president Randi Weingarten made this statement, a week after the CWA’s tweet, and in response to Lina Khan’s recent actions:

“The @FTC’s attempt to block the @Microsoft/Activision merger is hindering the opportunity for over 10,000 workers in the tech and video game, a clear path to unionization. @LinaKhanFTC should support labor-friendly, good-for-worker deals.”

Who is Randi Weingarten, you may ask? As shared in this recent New York Times profile, former secretary of State Mike Pompeo calls Randi “The Most Dangerous Person in the World.” That’s because in her capacity as head of a teacher’s union, she wields influence in US education, a current polarizing political battleground in the country.

So for Randi to also interject in this situation, and to come out to also criticize Lina is a big deal. Randi is lecturing Lina that her actions aren’t helping video game workers, and she should turn around.

In turn, Microsoft President Brad Smith had this to say about Mrs. Weingarten’s statement:

“Thank you. We are firmly committed to working with organized labor representing our workers on labor neutrality agreements upon completion of this deal.”

So there you have it. Lina’s FTC’s hands are tied to really do that much more in regards to the Microsoft Activision deal, but if you thought Lina’s actions had widespread support among the US political left, think again. She’s actually acting against the interest of Microsoft’s and Activision’s workers, and that’s why she needed to lose this fight.

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