Wizards of the Coast has, unsurprisingly, declined for the second time this year to voluntarily recognize union organizing efforts.

Wizards of the Coast Declines Voluntary Recognition for D&D and Studio X Ahead of Union Vote

Background: A Union Forms Around Magic: The Gathering Arena

A union made up of employees from the Magic: The Gathering Arena team unionized in June of this year. The action gave Wizards of the Coast until May to formally recognize the group. The company did not recognize it by that point.

Development: Letters, Emails and a Non Neutral Message

Later in June, Wizards of the Coast sent physical letters to employees encouraging them not to vote in favor of union representation. The source says the company technically followed the National Labor Relations Act, but the letters also implied, not-so-subtly, that current benefits would be "on the bargaining table for both parties to negotiate". The letters were allegedly accompanied by daily emails to employees.

The source describes the company as using legally permitted language to say it is not a fan of unionization while still acknowledging that employees have the right to unionize.

Latest Progress: The Union Says Wizards Will Not Recognize D&D or Studio X

The United Wizards of the Coast Union, also known as UWOTC-CWA, said on X that Wizards informed it the company does not intend to voluntarily recognize the D&D or Studio X units of the union ahead of a vote.

In its X post, the union said: "Yesterday, Wizards informed us that it doesn't intend to voluntarily recognize the D&D or Studio X units of our union ahead of a vote. We remain committed to creating a workplace focused on wellness, transparency, and collaboration by winning our coming election."

The group is now a coalition formed of members in both the D&D team and Studio X, which the source identifies as Magic: The Gathering's creative staff.

Wizards of the Coast sent a statement to Wargamer, and circulated it to employees before that. The company said: "We are best able to keep building great games and a great place to work by working directly with employees, not through unions. In this regard, Wizards is not neutral on the question of unionization ... in the end, we will respect the results of the election, no matter what our employees choose."

What the Union Is Bargaining For

UWOTC-CWA is bargaining for "fair wages, career progression, and job security," as well as remote work protections and "sustainable workloads: We have been asked to do more work with less regard for our personal lives."

Other concerns include healthcare, AI protections, and the ability to have legal ownership of creative work made outside of their jobs for WoTC.

Current Stage: Profitability Gives the Union Leverage

Wargamer notes that UWOTC-CWA has a strong lever because D&D and Magic: The Gathering are incredibly profitable. The source says an earnings report shows that Wizards of the Coast and Digital Gaming raked in $568 million in operating profit over the past six months, before adjustments. It also says consumer products lost $62 million, and entertainment dragged just $23 million through the door.

The article's framing is that employees in a unit responsible for most of a company's profit are in a prime position to negotiate. It adds that this leverage could be weakened if a corporation decided to lay off 1,000 people, including those responsible for its biggest commercial success, again.

The dispute is currently at the pre-vote stage. Wizards of the Coast has said it will respect the election result, but it has declined voluntary recognition for the D&D and Studio X units. UWOTC-CWA is preparing to win the coming election while pushing for fair wages, career progression, job security, remote work protections, sustainable workloads, healthcare, AI protections, and legal ownership of outside creative work.