Labor Dispute Escalates at Evolution AB in Tbilisi

News Summary

Workers at Evolution AB, a live gaming company in Tbilisi, Georgia, continue to strike over low wages, unsafe working conditions, and union rights. The Swedish National Contact Point has stepped in, highlighting allegations against the company’s treatment of employees. Evolution AB has refused to engage in discussions despite the grievances raised by the Evo-Union trade union. Reports of violence during protests and demands for wage increases reflect the ongoing struggle for labor rights in the industry. The situation draws attention from international gaming regulators amid concerns over fair treatment of workers.

Tbilisi, Georgia – A labor dispute at Evolution AB, a major live gaming company based in Sweden, has escalated as workers continue to strike over issues related to paying, working conditions, and union rights. This labor unrest has caught the attention of the Swedish National Contact Point (NCP) for Responsible Business Conduct, which recently issued a statement regarding the ongoing situation.

The conflict began in July 2024 when employees at Evolution’s Tbilisi studio initiated a strike prompted by grievances over low wages, unsafe working conditions, and alleged poor treatment by management. Following unsuccessful local attempts to resolve these issues, the Evo-Union trade union, represented by the Social Justice Center in Tbilisi, escalated the matter to the NCP in August 2024. The complaint specifically accused Evolution AB of violating OECD Guidelines for Multinational Enterprises that mandate fair wages, safe working environments, and respect for workers’ rights.

Despite the NCP’s invitation for Evolution AB to participate in discussions aimed at resolving the conflict, the company declined to engage, arguing that such discussions would not yield productive results. In contrast, union representatives expressed their willingness to converse about the issues at hand. Consequently, the NCP proceeded with an independent review devoid of any direct negotiations between the parties.

Evolution AB, which boasts a global workforce of over 22,000 employees, defended its remuneration policies as competitive and above local benchmarks. The company highlights that it maintains modern facilities equipped with adequate air quality, scheduled break periods, and recreational areas for its staff. However, reports submitted to the NCP paint a contrasting picture, indicating discrepancies in job safety, suppression of union activities, and violations of workers’ rights.

In addition, instances of violence during the protests have been reported, where confrontations between striking employees and personnel hired for security resulted in injuries on both sides. The NCP condemned violence from any party involved in the dispute and urged Evolution AB to engage with union leaders to improve adherence to international labor standards. A follow-up review is set for one year from now to assess the progress made in addressing these concerns.

The strike in Tbilisi has persisted for over a month, with employees alleging harassment and unsafe working conditions. As a response to the strikes, Evolution reported that disruptions caused by workers attempting to block entrances prompted a job review that led to the termination of 1,000 positions. Additionally, allegations have surfaced regarding non-uniformed security personnel reportedly assaulting workers during protests, further intensifying tensions.

Many employees have expressed grievances centered on low salaries, reportedly below $450 per month, juxtaposed with rising living expenses in Tbilisi. Striking workers have articulated demands for a 100% wage increase to match salaries paid by local casinos and improvements in workplace sanitary conditions. These demands reflect a broader call for labor rights and fair treatment within the industry.

The ongoing situation has garnered the attention of the Nevada Gaming Control Board as it engages in discussions with Evolution regarding a potential gaming license to operate in Las Vegas. Support for the striking workers has emerged from the Nevada Culinary Workers Union and Bartenders Union, which have publicly called for regulators to reject Evolution’s operational license until employee grievances are settled satisfactorily.

As the situation unfolds, the acknowledgment of labor rights and the pursuit of fair working conditions remain central to the conflict involving Evolution AB and its employees in Georgia. Both parties are under scrutiny as the NCP monitors the compliance with international labor standards in hopes of reaching a resolution.

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