In a significant milestone for labor organizing in the tech world, a union representing quality assurance workers at Microsoft has secured a tentative agreement that includes a 13.5 percent wage increase across the board. The contract, if ratified, would be the first of its kind in the video game industry.
The agreement, announced by the Communications Workers of America (CWA), covers approximately 300 employees at ZeniMax, a game publisher owned by Microsoft. ZeniMax is behind blockbuster franchises such as The Elder Scrolls, Fallout, and Doom, and was acquired by Microsoft in 2021 for $7.5 billion.
Wages were a central issue in the negotiations. The lowest-paid union members at ZeniMax currently earn $20.75 an hour. That figure would rise to $25 upon ratification and then to $28.38 by July 1. The contract also sets minimum pay levels for each job category, offering long-sought clarity and fairness for quality assurance testers.
The deal follows a broader shift in Microsoft’s labor stance. While most tech giants have traditionally resisted unionization, Microsoft agreed not to oppose union efforts as part of its campaign to gain antitrust approval for its 2023 acquisition of Activision Blizzard, a nearly $70 billion deal. That pledge has led to the formation of additional unions at Activision and within ZeniMax itself.
ZeniMax Workers United-CWA, formed in 2023 without a traditional National Labor Relations Board election, has been in talks with Microsoft since then. The company’s tone has remained notably cooperative. “The tentative agreement represents a meaningful step forward,” said Microsoft VP Amy Pannoni, highlighting a shared commitment to “constructive dialogue” with employees.
Beyond wages, the contract includes an unprecedented provision addressing artificial intelligence. Under the deal, ZeniMax must inform the union of any planned AI deployments that may impact workers and is required to negotiate on those impacts if the union requests it. This clause sets a precedent as AI increasingly intersects with creative and technical work in the gaming industry.
The union vote is expected by June 20. If approved, the deal could not only transform working conditions for hundreds of employees but also send ripples through an industry where labor has long lacked collective bargaining power.
With Microsoft’s gaming division generating $23 billion in revenue over the past year, the agreement reflects a small but symbolically powerful concession from a corporate giant—and a potential model for future labor deals in tech.