Posts with «business» label

Activision Blizzard employees form a committee to fight workplace discrimination

A dozen current and former Activision Blizzard employees have formed a committee aimed at protecting workers from discriminatory practices at the studio, outlining a list of demands for CEO Bobby Kotick, newly appointed diversity officer Kristen Hines and chief human resources officer Julie Hodges. 

As detailed by The Washington Post, the group's demands include ending mandatory arbitration in discrimination cases, improving on-site lactation rooms, protecting workers from retaliation, increasing support for trans employees and instituting independent investigations in cases of discrimination, including sexual harassment. The employee group, called the Worker Committee Against Sex and Gender Discrimination, submitted their demands to the studio's leadership team today.

The committee specifically demands private lactation rooms and appropriate storage spaces for breastmilk and pumping equipment. Breastfeeding workers at Activision Blizzard have documented their issues with the studio's lactation rooms, describing them as filthy, uncomfortable and poorly secured. Employees said fridges for breast milk were also used to store beer, that people pumping often had to sit on the floor and that breast milk was sometimes stolen. In regards to trans rights, the group demands the creation of a trans network similar to the in-house women's resource network and for software tools to be wiped of employees' deadnames.

In response to the formal call for change, an Activision Blizzard spokesperson told the Post that the studio appreciated hearing employees' concerns, and outlined a few changes that had already been made to improve lactation rooms, the arbitration process and channels of communication.

Activision Blizzard executives have been accused of cultivating a sexist, discriminatory workplace in multiple lawsuits over the past year. California's Department of Fair Employment and Housing first sued Activision Blizzard in July 2021 after conducting a two-year investigation into allegations of unchecked sexual harassment, gender-based discrimination and a pervasive "frat boy culture" at the studio. The US Equal Employment Opportunity Commission, a federal group, followed up with a similar lawsuit against Activision Blizzard in September 2021. Activision Blizzard settled the federal EEOC lawsuit this March, agreeing to establish an $18 million fund to compensate employees who experienced discrimination at the studio.

The workers’ demands include:
-End of all mandatory arbitration
-Independent Investigations for all claims of discrimination including sexual harassment
- Lactation Protections
- Trans Protections
- Protection from retaliation and more

— CODE-CWA (@CODE_CWA) May 24, 2022

Backed by the Communications Workers of America, Activision Blizzard employees have been advocating for change and unionization — to some degree of success — since the lawsuits were filed. CWA called the $18 million settlement "woefully inadequate," arguing it would provide the maximum compensation to just 60 workers, when there were likely hundreds of claimants. 

Former Activision Blizzard employee and campaign organizer for the tech-industry group CODE-CWA, Jessica Gonzalez, appealed the $18 million settlement this week, seeking an increase in compensation. Gonzalez is one of the 12 employees in the Worker Committee Against Sex and Gender Discrimination. 

An additional lawsuit accusing Activision Blizzard of sexual harassment, discrimination and retaliation was filed this week by a current employee. And there's the wide-ranging investigation into the studio's workplace practices currently underway at the Securities and Exchange Commission.

Former PlayStation employee files new gender discrimination lawsuit against company

Former PlayStation employee Emma Majo has filed a new lawsuit against the company after her previous complaint was dismissed by a federal judge in April. According to Axios, Majo’s new filing includes many of the same gender discrimination allegations found in her original one, but the scope of the lawsuit is more limited.

Rather than seeking to represent all women employed by Sony’s PlayStation unit in the US as was previously her intent, the complaint instead seeks damages for those women who worked for the company in California. When judge Laurel Beeler dismissed the original case, she said Majo could file again with additional details. The new complaint incorporates allegations from the nine women who came forward to support the first suit.

“Sony tolerates and cultivates a work environment that discriminates against female employees, including female employees and those who identify as female,” the complaint reads. We’ve reached out to Sony for comment. In the meantime, we'll note the company previously asserted Majo’s claims were based on “unactionable allegations.”

Former Activision Blizzard employee appeals $18 million harassment settlement

Former Activision Blizzard employee Jessica Gonzalez is appealing the publisher’s recent $18 million settlement with the US Equal Employment Opportunity Commission (EEOC). On Monday, the Communications Workers of America (CWA) announced Gonzalez is challenging the settlement on the grounds that it prevents workers who apply as claimants from suing Activision Blizzard in the future.

When the settlement was first approved by a federal judge in late March, many Activision Blizzard employees criticized it for not going nearly far enough to hold the company accountable. The fact the settlement prevents claimants from taking part in future litigation against Activision Blizzard was seen as particularly problematic as it would make those individuals ineligible to participate in California’s sexual harassment lawsuit against the publisher.

Employees have also argued $18 million is far too little to compensate everyone who could come forward with a claim against the company. The sum means there’s only enough money for the EEOC to award 60 employees with the maximum settlement allowed.

“The court allowed Activision and the EEOC to keep the affected workers and others who had an interest in holding the company accountable out of the process. Eligible employees should not have to give up their right to pursue other legal remedies if they accept the settlement,” Gonzalez said.

There is a precedent for workers winning a better settlement in these types of situations. Following a 2018 class-action lawsuit alleging sexual harassment and discrimination at the studio, Riot Games was ordered to pay $10 million to eligible employees. California’s Department of Fair Employment and Housing later blocked that settlement, and the amount was eventually increased to $100 million.

NLRB accuses Activision Blizzard of violating labor law by threatening employees

A regional director for the National Labor Relations Board has determined there's "merit to the allegations" that Activision Blizzard violated the National Labor Relations Act. It says there are indications the company and its subsidiaries Blizzard Entertainment and Activision Publishing maintained an "overbroad social media policy" and that Blizzard threatened employees who were exercising their right to organize. The findings were first reported by Bloomberg and confirmed to Engadget.

“These allegations are false. Employees may and do talk freely about these workplace issues without retaliation, and our social media policy expressly incorporates employees’ NLRA rights," an Activision Blizzard spokesperson told Engadget in a statement. "Our social media policy explicitly says that it ‘does not restrict employees from engaging in the communication of information protected by law, including for example, rights of employees in the United States protected by the National Labor Relations Act.’”

If the company does not settle the case, the NLRB's Los Angeles office will file a complaint. That will lead to a hearing in front of an NLRB Administrative Law Judge (unless a settlement is reached in the meantime).

While the agency can't impose punitive measures against a defendant, it can require them to reverse punishments or policies; reinstate fired workers and provide backpay; or post notices containing promises not to break the law. An NLRB regional director can petition a district court for a temporary injunction if workers' rights have been violated. The agency can also file cases in federal court.

The allegations were made in September by the Communications Workers of America (CWA). It accused Activision Blizzard in an Unfair Labor Practice filing of telling employees they can't discuss wages, hours or working conditions; enforcing an "an overly broad social media policy" against workers who "engaged in protected concerted activity" (i.e. their right to organize or discuss unionization); and threatening or suveilling such employees.

The news comes on the same day that votes will be counted in a Raven Software union election. Quality assurance workers at the Activision Blizzard studio, who are organizing with the CWA as the Game Workers Alliance, got the go-ahead from the NLRB to hold a vote. If they're successful, the group of 21 or so workers will form the first union at a AAA game publisher in North America, despite the company's reported attempts to stymie their efforts.

Activision Blizzard's labor practices came under intense scrutiny last July when California’s Department of Fair Employment and Housing accused it in a lawsuit of fostering a "frat boy" culture where sexual harassment and discrimination were present. Other suits have been filed against the company since, including a wrongful death case.

In the wake of the initial suit, Activision Blizzard workers formed an employee advocacy group called A Better ABK. They used social media to organize and share their concerns and demands publicly.

The company is the subject of a proposed $68.7 billion takeover by Microsoft. Its shareholders voted in favor of the deal last month, but regulatory approval is still required.

Update 5/23 3:10PM ET: Added Activision Blizzard's statement.

DC Attorney General sues Mark Zuckerberg over the Cambridge Analytica scandal

Meta's Cambridge Analytica woes are far from over. Karl Racine, the Attorney General of the District of Columbia, has sued Mark Zuckerberg. He accused the Meta CEO of having a direct hand in making the decisions that led to the major data breach.

Racine claims that Zuckerberg "contributed to Facebook’s lax oversight of user data and implementation of misleading privacy agreements." That, according to the suit, allowed consulting firm Cambridge Analytica to acquire personal data on more than 70 million Americans, including more than 340,000 DC residents. The company allegedly used the data to help sway voters in the 2016 presidential election through political ad targeting.

The AG previously sued Meta (then known as Facebook) over the scandal in 2018. That case is still ongoing. This time, Racine is targeting Zuckerberg directly. Under the jurisdiction's Consumer Protection Procedures Act, which bans unfair and deceptive trade practices, individuals are liable for a company's actions that they were aware of, controlled or failed to stop.

Racine is seeking a jury trial against Zuckerberg. He wants Meta's CEO to refrain from future CPPA violations and to pay damages and civil penalties. Engadget has contacted Meta for comment.

“Since filing our landmark lawsuit against Facebook, my office has fought tooth and nail against the company's characteristic efforts to resist producing documents and otherwise thwart our suit. We continue to persist and have followed the evidence right to Mr. Zuckerberg," Racine said in a statement. “This unprecedented security breach exposed tens of millions of Americans’ personal information, and Mr. Zuckerberg’s policies enabled a multi-year effort to mislead users about the extent of Facebook's wrongful conduct. This lawsuit is not only warranted, but necessary, and sends a message that corporate leaders, including CEOs, will be held accountable for their actions.”

Clearview AI fined £7.5 million and told to delete all UK facial recognition data

Clearview AI has been fined £7.55 million ($9.5 million) by the UK's privacy watchdog for illegally scraping the facial images of UK residents from social media and the web. It was also ordered to stop obtaining the data of UK residents and to delete any it has already collected. "The company not only enables identification of those people, but effectively monitors their behavior and offers it as a commercial service. That is unacceptable," said UK information commissioner John Edwards in a statement. 

The UK's Information Commissioner's Office (ICO) opened a joint investigation with Australia into Clearview AI back in 2020, and issued a preliminary fine of £17 million ($21.4 million) against the company late last year. At the time, the office noted that "Clearview AI Inc’s database are likely to include the data of a substantial number of people from the UK and may have been gathered without people’s knowledge from publicly available information online, including social media platforms."

In issuing a final injunction, the ICO noted that globally, the company illegally collected more than 20 billion facial images for its database. "Although Clearview AI no longer offers its services to UK organizations, the company has customers in other countries, so the company is still using personal data of UK residents," it said. 

Clearview AI sells an app that can be used to upload a photo of someone, then try to identify them by check its database. The data has been used by thousands of public law enforcement agencies, despite the technology being in a legal grey area. 

Twitter, Google and YouTube have all sent cease-and-desist letters to the company, alleging that it violates their terms of service. Facebook has also demanded that Clearview stop scraping its data. The company has received complaints from privacy groups in Europe, and was hit with a €20 million fine in Italy.

In the US, the ACLU sued Clearview for violating Illinois state laws. The company recently settled that lawsuit by agreeing to restrict the use of its database in Illinois, though it will still supply it to federal agencies and other states.

Hyundai's first all-EV factory in the US will be in Georgia

Hyundai is betting big on American electric vehicle sales. The automaker has struck a deal with Georgia to build its first dedicated EV factory in the US. The 2,923-acre plant near Savannah will make cars and batteries when production is projected to start in the first half of 2025. Construction starts in early 2023. The company expects to manufacture 300,000 EVs per year at the facility, covering a "wide range" of models.

Multiple factors led to the location choice. Hyundai pointed to "favorable business conditions" that included speedy market access, a large talent pool and an existing network that includes Kia's main manufacturing hub as well as suppliers. Unnamed incentives play a part, according to Savannah Morning News. However, it's also a prime spot for transportation. The factory is less than 31 miles from Savannah's port, which is the largest container stopover in the US and has two railway facilities at its disposal. Add the proximity of two major highways (the I-95 and I-16) and it will be easy for Hyundai to receive supplies and ship finished EVs.

Not surprisingly, both Georgia and Hyundai are touting economic benefits. They estimate the investment to be worth $5.54 billion, with Governor Brian Kemp claiming it will be the "largest project" in state history. Hyundai further claimed the plant would create 8,100 jobs, although it's not clear how many of those are full-time, permanent roles.

The annual production level won't be quite as strong as Hyundai's conventional manufacturing output. The company's Montgomery, Alabama plant can make up to 399,500 vehicles per year. This represents a major commitment to EVs, however, and suggests Hyundai is racing to compete with Tesla, Rivian, Volkswagen and other brands expanding their electric car production in the country.

Coinbase reportedly pauses hiring amid plummeting crypto market

In the wake of the cryptocurrency market crashing, Coinbase said this week it was joining a number of tech companies by slowing down its hiring plans for this year. More details have emerged about Coinbase's efforts to cut costs after The Information obtained emails that were sent to employees.

The company is said to have frozen hiring for two weeks (though it will honor offers that have already been sent) and put new projects on hold. It is also reportedly trying to reduce how much it spends on hosting services.

Along with not hiring as many people as it previously expected to this year, Coinbase is looking to minimize employee attrition. According to the report, the company is giving workers more shares. Coinbase's stock has dropped by over 75 percent in the last six months.

Coinbase is said to have paused some projects, such as a business banking initiative, while it focuses on increasing revenue from core products, including retail and institutional trading. It's reportedly planning to offer retail customers more cryptocurrencies and to expand operations outside of the US.

When asked for comment, a Coinbase spokesperson directed Engadget to a tweet thread from chief product officer Surojit Chatterjee. While the company is renewing focus on its "high-impact products" and trying to "improve efficiencies by seeking improvements in developer productivity," Chatterjee noted that Coinbase doesn't plan to stop investing in strategic and venture projects. "We believe the down market is a great time to build for the longer term," Chatterjee wrote.

The company revealed in its first-quarter earnings report last week that, at $1.16 billion, net revenue fell by 27 percent year-over-year and by over half from the previous quarter. Trading volume also dropped. Amid a hiring spree (it's said to have brought in more than 1,200 new employees this year), operating expenses increased by nine percent from the previous quarter to $1.7 billion. Coinbase had a net loss of $430 million in Q1. All of that was before the cryptocurrency market nosedived earlier this month.

Stablecoin TerraUSD (which is supposed to be pegged to the value of the US dollar) and sister token Luna effectively collapsed, causing a ripple effect to other cryptocurrency prices. Though it has since rebounded a bit, the price of bitcoin also dipped below $26,000 for the first time in 16 months last week amid a sell off that saw over $200 billion wiped from the crypto market in one day.

Coinbase's shift in hiring strategy reflects a broader trend among prominent tech companies. Meta and Uber are among the major businesses that are cutting costs and slowing down recruitment plans. Meanwhile, Netflix laid off around 150 staff in the US this week and canceled some animated projects. The company's stock plummeted after it reported its first-ever quarterly drop in subscriber numbers last month.

Senate bill would break up Google’s ad business

A bill that would break up Google's advertising business if it becomes law has been introduced in the Senate. The Competition and Transparency in Digital Advertising Act, which has support on both sides of the aisle, would prevent companies that process more than $20 billion in annual digital ad transactions "from participating in more than one part of the digital advertising ecosystem," as The Wall Street Journal reports.

Google easily falls under that distinction. It generated $54.7 billion in ad revenue last quarter alone. While other companies meet the dollar-figure threshold of the proposed rules, Google has a hand in many aspects of the advertising process. It runs an exchange where ad networks bid on inventory. It also offers tools to help companies buy and sell ads.

A House of Representatives version of the legislation is also expected to be introduced imminently. If the bill becomes law, Google would have to exit some of those businesses. It would have a year to comply with the rules after the law is enacted. Meta may also be impacted by the legislation.

“When you have Google simultaneously serving as a seller and a buyer and running an exchange, that gives them an unfair, undue advantage in the marketplace, one that doesn’t necessarily reflect the value they are providing,” Sen. Mike Lee (R-Utah) told the Journal. “When a company can wear all these hats simultaneously, it can engage in conduct that harms everyone.”

Lee is the ranking member of the Subcommittee on Competition Policy, Antitrust, and Consumer Rights. Committee chair Sen. Amy Klobuchar (D-Minnesota) is a cosponsor of the bill, as are Sens.Ted Cruz (R-Texas) and Richard Blumenthal (D- Connecticut).

“Advertising tools from Google and many competitors help American websites and apps fund their content, help businesses grow and help protect users from privacy risks and misleading ads," a Google spokesperson told Engadget. "Breaking those tools would hurt publishers and advertisers, lower ad quality and create new privacy risks. And, at a time of heightened inflation, it would handicap small businesses looking for easy and effective ways to grow online. The real issue is low-quality data brokers who threaten Americans’ privacy and flood them with spammy ads. In short, this is the wrong bill, at the wrong time, aimed at the wrong target.”

Other provisions of the bill include rules for companies that process at least $5 billion of ad transactions per year. They'd be required to provide transparent pricing and act in their customers' best interest. Customers would have the option to sue over breaches of those.

There are other pieces of antitrust legislation in the works that target tech giants. Klobuchar's American Innovation and Choice Online Act, which advanced out of committee in January, would ban companies from giving preference to their own products over those from rivals on their own platforms. For instance, Apple wouldn't be able to position its own apps above competing ones in App Store search results.

Apple Store workers at the World Trade Center accuse the company of union busting

The Communications Workers of America has filed a second Unfair Labor Practice charge against Apple this week. This time, the labor union is accusing the tech giant of violating multiple federal labor laws at its flagship World Trade Center store. The complaint alleges that Apple interrogated workers at the WTC store regarding their "protected concerted activities." Apple also allegedly monitored those activities, or at least made employees believe that they were being monitored. Based on the group's filing, those incidents happened on or about May 3rd. 

By May 15th, the group said Apple "unlawfully implemented" a rule at the store that prohibits employees from posting union flyers in work areas during their breaks. Further, it's accusing the tech giant of conducting "captive-audience" speeches designed to discourage them from unionizing. 

Earlier this year, Apple Store workers across the US started planning to unionize in an effort to get the company to increase their pay, which they claim isn't keeping up with the cost of living. Apple reportedly hired anti-union law firm Littler Mendelson, which counts Starbucks and McDonald's as clients, in response. According to a Motherboard report, the company also recently started arming its Store managers with anti-union talking points. They were apparently instructed to tell employees that they could lose career opportunities, as well as personal time off and work flexibility, if they join a union. 

The Communications Workers of America also filed an Unfair Labor Practice complaint against Apple on behalf of workers at the Cumberland Mall store on May 17th. In it, the group accused the company of holding mandatory captive audience meetings regarding the upcoming union election for the Atlanta location that's scheduled to take place in early June. 

Tim Dubnau, CWA's Deputy Organizing Director, said:

"Apple retail workers across the country are demanding a voice on the job and a seat at the table. Unfortunately, and in contradiction to its stated values, Apple has responded like a typical American corporation with heavy-handed tactics designed to intimidate and coerce workers. The best thing Apple can do is allow workers to choose for themselves whether or not they want a union. When we learn of situations where Apple is violating labor law, we intend to hold the company accountable and help the workers defend their rights under the law."