Microsoft Labor Union Forms—What It Means for Your Organization

As Microsoft acquires gaming giant Activision Blizzard, they also welcome a new labor union. A group of approximately 300 employees formed the union from both Texas and Maryland-based quality assurance teams. Continue reading to learn what Microsoft's ongoing battle with workplace culture and labor unions might mean and how it could impact your organization. 

Refresher: What Is a Union?

A union is a group formed by more than one employee. The goal of the union is to provide employees with better working conditions, including:

• Higher pay 

• More time off 

• Improved physical condition 

• Provided resources

• Better benefits 

The union generally acts as a collective voice of the individuals striving for improvements within their workplace. It allows individuals to obtain benefits that would not otherwise be accessible. This is because a collection of individuals holds much more sway than one person. 

Unions are subject to legal requirements and reporting under the National Labor Relations Act and are subject to its policies.

What Prompts the Formation of a Union?

Unions typically form when current working conditions are below satisfactory. Generally, a group of employees will unite under common concerns over hours, wages, safety, scheduling, and resources and form a union to create more leverage when asking their employer to provide better working conditions. They will formally negotiate different contracts for the sake of the individual employees and work for the greater good of the people. 

Most often, unions are formed in industries where conditions are strenuous, involving long hours, strict protocol, and harsh environments. 

Several examples of initiatives with heavy union involvement are: 

1. Government

2. Education

3. Utilities

4. Transportation

5. Telecommunications

6. Industrial

These industries provide daily services to people and often involve long hours of very restrictive work. Unionizing in these industries makes sense as many workers may have difficulty accessing needed benefits. Unions help these employees to receive better accommodations and conditions, and as such, have prompted large percentages of employees to join.

Why Is the Microsoft Union Significant?

Science, Technology, Engineering, and Mathematics (STEM) careers have historically seen meager rates of union activity. Specifically, maths careers see rates as low as 3.7%, according to the Bureau of Labor and Statistics (BLS). Historically low rates mark this Microsoft union as an outlier in the industry. 

While this is Microsoft's first union, it is not their first encounter with them. Microsoft is currently acquiring Activision Blizzard, which is dealing with lawsuits surrounding sexual harassment and gender-based pay inequity.

Microsoft’s commitment to unions has helped them establish support during the acquisition and allowed them to stand apart from other tech giants who are notoriously against unionization. 

Microsoft's new union also aligns with the growing interest in unions throughout the country. The BLS recently reported that union petitions filed with the bureau were up 58% in the first three quarters. This is significant because it could begin a surge in union interest within big tech. 

What Does Microsoft’s Union Mean for Your Organization?

Though tech fields show lower interest in unions, Microsoft is a huge name and recognized as one of the industry leaders in its field. When an organization of that magnitude makes a statement like this, it can spark change in the industry. 

Organizations need to be prepared for union interest within their organization. If you are adamant about not seeing the formation of unions within your organization, then consider what you can do to avoid the challenge altogether. Employees form unions for one reason–to improve employee conditions. While this can have numerous implications, it is really about employees feeling they are not being given what is fair. Providing your employees with generous benefits, transparency, and a willingness to listen will likely make for a positive work environment. 

Maintaining a good culture is an ever-evolving process and requires regular maintenance and updates. It doesn't end when things look good; that is only the beginning. 

Employees may take the initiative and seek to form a union if they are unsatisfied. If 30% of employees wish to create a union, they will be eligible. This can be done by signing cards or petitions or by The National Labor Relations Board (NLRB) conducting an official election. 

As union activity grows, organizations need to remain prepared by either doing what they can to improve or maintain a strong culture or preparing themselves for welcoming a union to help improve employees' experiences within the workplace. 

Additional Resources

You can also stay informed, educated, and up-to-date with unions and other important topics by using BerniePortal’s comprehensive resources:

• BernieU—free online HR courses, approved for SHRM and HRCI recertification credit

• BerniePortal Blog—a one-stop-shop for HR industry news

• HR Glossary—featuring the most common HR terms, acronyms, and compliance

• HR Guides—essential pillars covering an extensive list of comprehensive HR topics

• HR Party of One—our popular YouTube series and podcast, covering emerging HR trends and enduring HR topics