In the “The Knowledge Workers’ Strike” case, the main topic of discussion is a negotiation between the Software Engineers Guild (SEG), a workers union for programmers in the gaming industry, and Detonation, a large virtual game producing company. The SEG is nearly half of Detonation’s employees and they are trying to rally together to get better pay and benefits (regarding revenue sharing, etc). On the other hand, Detonation is trying to shift its workers to profit sharing, rather than revenue sharing. Workers have begun picketing because the contracts have lapsed and the SEG and Detonation have seemed to reach an impasse. Main Problem
While, there are sub-issues, the main issue boils down to the agreement on the terms of the contract. Within the contract are several criteria that each side is vying for. On one side, the SEG is trying to fight for better wages due to the nature of their careers with tight deadline after tight deadline and non-stop coding schedules. It also would like a bigger piece of the pie, so to speak. One of the SEG’s major criteria is to extend its jurisdiction over the internet gaming segment in addition to the PC and console games. Significance
The significance of the problem is fairly substantial because about half of Detonation’s work force is in the SEG and if they strike or walk, this would have a large impact on the company. Some of the outcomes of a strike include: continued delay of major projects or a complete halt or discontinuation of new product launches (i.e. Couch Nijas 2), loss of workforce for Detonation and loss of jobs for SEG in tough economic conditions. The bottom line is for SEG jobs are at stake, while for Detonation, productivity and an end result of less profit is at stake. These are two big concerns for each party throughout the negotiation. View Points & Prior Offers
From Detonation’s point of view, the gaming industry is beginning to feel the effects of the economic downturn and its numbers are...
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