The Knowledge Workers Strike
HBR Case Study
BY JON HEALEY COMMENTARY BY RICHARD L. TRUMKA, RICHARD B. FREEMAN, AND JEFFREY ANDERSON
The Knowledge Workers’ Strike
How much leverage do unions have in a bad economic climate?
THE CHROME AND GLASS FACADE
of Detonation Media’s headquarters in Mountain View, California, gleamed in the warm April sun. On the broad front terrace, a crowd of camera-ready demonstrators from the Software Engineers Guild milled about and chanted: “No deal, no code, no games!” The protesters toted signs that likened Detonation’s management to the blood-soaked villains of the video games that had spurred the company’s growth. Members of the SEG – among them nearly half of Detonation’s 10,000 employees – had been working without a contract for three months. The programmers were well paid, to be sure, but their deadline-driven, round-the-clock coding marathons made for careers about as short as an NFL running back’s. Adding to labor-management tensions were the layoffs that had hit the gaming industry in waves since late 2008, fueling rumors of potential cutbacks at Detonation. The protest was loud but lightly attended – most of the programmers remained at their computers. Couch Ninjas 2, the new title by star developer Tetsui Wakatanabe, was weeks behind schedule. (Though his hit rate with games was sky-high, he wasn’t so hot with deadlines.) Tetsui drifted away from a conference call with coding teams in New York and Toronto
Daniel Vasconcellos
to peer out the window. A couple of coders passed behind him from the direction of the vending machines. “I’d sure rather be out there picketing,” said one to the other. “Detonation’s trying to screw us on the revenue sharing.” “Dude,” said the other coder, “the longer this thing drags out, the worse the market’s gonna be. If those clowns don’t cut a deal soon, we’ll get pink slips instead of a raise.” Tetsui chuckled. The two held up their silver-and-blue cans in a mock toast and then hustled back to their desks.
BY JON HEALEY COMMENTARY BY RICHARD L. TRUMKA, RICHARD B. FREEMAN, AND JEFFREY ANDERSON
The Knowledge Workers’ Strike
How much leverage do unions have in a bad economic climate?
THE CHROME AND GLASS FACADE
of Detonation Media’s headquarters in Mountain View, California, gleamed in the warm April sun. On the broad front terrace, a crowd of camera-ready demonstrators from the Software Engineers Guild milled about and chanted: “No deal, no code, no games!” The protesters toted signs that likened Detonation’s management to the blood-soaked villains of the video games that had spurred the company’s growth. Members of the SEG – among them nearly half of Detonation’s 10,000 employees – had been working without a contract for three months. The programmers were well paid, to be sure, but their deadline-driven, round-the-clock coding marathons made for careers about as short as an NFL running back’s. Adding to labor-management tensions were the layoffs that had hit the gaming industry in waves since late 2008, fueling rumors of potential cutbacks at Detonation. The protest was loud but lightly attended – most of the programmers remained at their computers. Couch Ninjas 2, the new title by star developer Tetsui Wakatanabe, was weeks behind schedule. (Though his hit rate with games was sky-high, he wasn’t so hot with deadlines.) Tetsui drifted away from a conference call with coding teams in New York and Toronto
Daniel Vasconcellos
to peer out the window. A couple of coders passed behind him from the direction of the vending machines. “I’d sure rather be out there picketing,” said one to the other. “Detonation’s trying to screw us on the revenue sharing.” “Dude,” said the other coder, “the longer this thing drags out, the worse the market’s gonna be. If those clowns don’t cut a deal soon, we’ll get pink slips instead of a raise.” Tetsui chuckled. The two held up their silver-and-blue cans in a mock toast and then hustled back to their desks.