Rockstar Layoff Conflict Deepens as Fight Reaches Parliament

• IWGB takes legal action against Rockstar Games due to abrupt layoffs.
• Unions in London, Edinburgh, and Paris publicly support the laid-off workers through rallies and protests.
• Incident turns political as the conflict overshadows Take-Two’s record Q2 earnings, amidst the GTA VI’s delayed development.

On Thursday, Rockstar North employees delivered a letter signed by about 220 workers to senior management amid abrupt layoffs and the postponement of Grand Theft Auto VI. The letter called for their coworkers' “immediate reinstatement,” claiming that the terminations were punitive and detrimental to employee morale. 

Rockstar Games, however, claimed that the firings were based on the leak of confidential information rather than “union-busting,” as accused by the Independent Workers’ Union of Great Britain (IWGB). Nevertheless, this 31-person layoff has caused a huge controversy that has led to public demonstrations, lawsuits, and a Parliamentary focus.

Rockstar Layoffs Ignite Industry Unrest

What was supposed to be an internal conflict and an autonomous decision by the company quickly became public. Due to this, early on November 7, employees and supporters staged demonstrations outside Take-Two's London headquarters and Rockstar Games North's Edinburgh office. 

Apart from that, a November 14 rally in Paris was organized by the French game industry union, Le Syndicat des Travailleureuses du Jeu Vidéo, with more protests in London on the same day. A march at the Scottish Parliament area, Holyrood, is also scheduled for November 18 in conjunction with a cross-party meeting about Scotland's gaming industry, after lawmakers and activists voiced their opinions.

IWGB reportedly filed for a legal action representing the fired employees, stressing "victimization and collective dismissal linked to trade union activity." IWGB also revealed that after several unsuccessful attempts to meet with the Rockstar management, they had to take this step. 

The union further contended that Rockstar had "declined" to engage in negotiations and was unwavering in their refusal to bring back the fired employees in a way that IWGB considered illegal.

In fact, Westminster has also taken notice of the case. The issue was brought up in the House of Commons by Christine Jardine, the Liberal Democrat MP for Edinburgh West.

In her speech, Jardine urged ministers to support impacted workers and stop such acts from happening in the future. Now that the case has been raised in Parliament, calls for more precise protections for workers and their unions in the UK gaming industry have increased.

Rockstar's internal strife casts a shadow over its parent company, Take-Two's record $1.96 billion Q2 earnings.  The question now is whether Take-Two's robust profits can stabilize the studio or if Rockstar's discontent will begin to shape the publisher's fate instead, given the current situation they are in and the already postponed release of GTA VI.