Ubisoft shut down a studio right after its staff unionized. The company closed its Halifax location, laying off seventy-one workers, shortly after a majority voted for union representation with CWA Canada. The union has filed a formal complaint with provincial labor authorities, alleging the closure was retaliatory. Ubisoft denies this claim, stating financial reasons drove the decision.
The union discovered Ubisoft received nearly a billion Canadian dollars in government tax credits. These subsidies came from Canadian provincial governments over a five-year period. CWA Canada president Carmel Smyth called the situation outrageous, highlighting a huge subsidy taken from public funds. The company accepted millions specifically to nurture tech talent in Nova Scotia.
Ubisoft has a history of using tax incentives to establish major studios. Its massive Montreal office originated due to attractive Quebec tax breaks. The Halifax studio, however, did not grow into a similar development hub. The union argues the rules must change to force companies to repay subsidies after closures or major layoffs.
Legal pressure has already prompted Ubisoft to consider improving severance packages for affected workers. The union maintains that the sudden shutdown caught employees completely by surprise, contradicting claims of long-term planning. They continue to seek evidence proving financial necessity motivated the closure. This case could potentially reform how governments structure future corporate incentive programs.
The union discovered Ubisoft received nearly a billion Canadian dollars in government tax credits. These subsidies came from Canadian provincial governments over a five-year period. CWA Canada president Carmel Smyth called the situation outrageous, highlighting a huge subsidy taken from public funds. The company accepted millions specifically to nurture tech talent in Nova Scotia.
Ubisoft has a history of using tax incentives to establish major studios. Its massive Montreal office originated due to attractive Quebec tax breaks. The Halifax studio, however, did not grow into a similar development hub. The union argues the rules must change to force companies to repay subsidies after closures or major layoffs.
Legal pressure has already prompted Ubisoft to consider improving severance packages for affected workers. The union maintains that the sudden shutdown caught employees completely by surprise, contradicting claims of long-term planning. They continue to seek evidence proving financial necessity motivated the closure. This case could potentially reform how governments structure future corporate incentive programs.
