This is ridiculous, especially since the French publisher received nearly $1 billion in tax breaks.
In December, Ubisoft Halifax announced that its employees had voted for full union representation under CWA Canada. Sixty-one of the studio’s 71 employees joined Local 30111, as did those at Bethesda Game Studios Montréal. Three weeks later, Ubisoft announced it was closing the studio and laying off all 71 employees. The company denied that the closure was related to the majority of the staff’s union membership. CWA Canada stated that it would use all legal means to ensure that the rights of these workers are respected.
Apparently, this process has already begun; the union filed a formal complaint with the Nova Scotia Labor Board regarding the closure. The union also expressed outrage upon learning that Ubisoft received nearly $1 billion in tax breaks while operating in Nova Scotia over the past five years. State and provincial governments often offer tax breaks to companies to encourage them to continue operating in their state or province. Ubisoft has a long history of taking advantage of these breaks to establish some of its most important offices. Ubisoft Montréal was established primarily because of Quebec‘s attractive tax incentives. Without these incentives, Ubisoft might not have opened a studio in Montreal, which might not have developed into the incredible game development hub it is today, home to many talented developers.
Although Halifax has not developed into a game development hub to the same extent as Montreal, Carmel Smyth, president of CWA Canada, pointed out that Ubisoft received $12 million in taxpayer money from the Nova Scotia government to train talented young people and build up the technology industry when the union filed a complaint. Now, Ubisoft is leaving without apology. After reviewing French Senate documents, the union found that Ubisoft had received more tax relief from Canada than from any other country and that it had received hundreds of millions in tax relief over the past five years.
Specifically, Ubisoft received €605.6 million in tax breaks from the Canadian government between 2020 and 2024. Smyth adds that it is outrageous that a company can receive hundreds of millions in tax breaks and then close its business and lay off its workers. It is shocking that governments allow this to happen. Immediate changes are needed to hold companies accountable. The rules must stipulate that if a business closes or downsizes significantly, it must repay government subsidies.
CWA Canada maintains its accusation that Ubisoft closed the Halifax studio to exclude the union. Ubisoft denies that the closure had anything to do with the unionization of the studio. However, CWA Canada notes that if the closure was pre-planned, as Ubisoft claims, it would not have come as a complete surprise to staff. Furthermore, Ubisoft has yet to provide evidence that the closure was a financially necessary decision. Since the closure was announced, legal and public pressure from CWA Canada has prompted Ubisoft to consider increasing the severance pay offered to the 71 Halifax studio employees who were laid off.
Although this may be the best outcome the union could hope for, the pressure it has exerted, particularly regarding the Canadian and provincial governments’ attitude toward tax breaks, could lead to significant changes in the future.
Source: WCCFTech, CWA Canada
