Swedish labor groups Unionen and Sveriges Ingenjörer have formally announced a strike warning aimed at King after the company’s leadership turned down a proposed collective bargaining agreement (CBA) last month. Unionen lodged its official strike notice on September 15, and negotiations mediated by a third party are currently in progress. Should the parties fail to reach a mutually acceptable settlement, King’s Swedish workforce is prepared to commence a work stoppage on September 25.
The planned action has also garnered solidarity from several other unions. Naturvetarna, DIK, and the Akademikerförbundet SSR have all publicly stated that they will join the industrial action in support of Unionen and Sveriges Ingenjörer, underscoring the broader concern among Swedish professionals about the terms of employment and the future of collective bargaining in the country. A spokesperson for Unionen explained to Game File that the union’s members at King are seeking “a collective agreement that gives them greater influence over workplace terms and conditions” and that also provides stronger job security. The representative emphasized that a CBA is not merely about wages; it encompasses a wide range of employee benefits, including pensions, health insurance, regulated working hours, and mechanisms for workers to have a say in the conditions under which they operate.
“A collective agreement is a cornerstone of stability in the Swedish labour market,” the union wrote in a separate statement, highlighting the importance of such contracts for maintaining a predictable and fair employment environment. GamesIndustry.biz has reached out to Unionen for further comment and will update the story if additional information becomes available.
In response to the union’s demands, King’s chief operating officer Ulrika Högåård defended the company’s position, stating, “King offers fair and competitive employment terms, and we are confident that our benefits and conditions are in line with, or exceed, what would be provided under a collective bargaining agreement.” She added that the company has maintained an open line of dialogue with local union representatives, even though it has chosen not to enter into a formal CBA at this time. “We remain committed to continuing this respectful and transparent dialogue on important employee matters,” Högåård said. Earlier, in a June‑dated email to staff, King’s president Todd Green explained that the decision to reject the CBA was “not made lightly.” According to Green, King’s current benefits package is already more advantageous for its Swedish employees than a typical collective agreement would provide.
He cited specific advantages such as an enhanced pension scheme, generous long‑term sick‑pay provisions, private healthcare coverage, and robust parental‑leave policies. Green argued that while a CBA would not necessarily prevent the company from continuing to offer these benefits, it would force a restructuring of the benefits framework that could ultimately be detrimental to Swedish staff. Green further clarified that King’s existing operating model is, in his view, the optimal fit for the company’s activities in Sweden at present. He warned that adopting a collective bargaining agreement would entail “significant changes to how we operate in Sweden, including our processes, policies, and ways of working.” This, he suggested, could introduce inefficiencies and reduce the flexibility that King currently enjoys in managing its workforce.
Importantly, Green stressed that the decision to forego a CBA does not reflect any disrespect toward trade unions or the Swedish labour tradition. “We will continue to work with the trade union club in an open, respectful and constructive way, and we will continue to consult with trade unions where required,” he affirmed. The situation reflects a broader tension in Sweden’s tech and gaming sectors, where companies often balance the desire to offer competitive, market‑driven compensation packages against the expectations of a strong union culture that favors collective bargaining. While King argues that its bespoke benefits are superior to a standardized CBA, the unions contend that a collective agreement provides essential legal safeguards and a structured avenue for employee input, especially regarding issues such as work‑life balance, job security, and long‑term career development.
If mediation fails and the strike proceeds on September 25, it could have significant ramifications for King’s development timelines, particularly for projects that rely heavily on Swedish talent. Past industrial actions in Sweden’s gaming industry have demonstrated that even short‑term work stoppages can delay releases, disrupt coordination with international partners, and increase operational costs. Both sides appear to recognize the high stakes. Union representatives have highlighted the symbolic importance of standing up for collective rights, while King’s leadership emphasizes the flexibility and tailored nature of its current benefits scheme.
The upcoming mediation sessions will likely focus on finding a middle ground—perhaps by offering additional assurances or modifying certain benefit structures without fully committing to a formal CBA. Stakeholders, including investors, partners, and the broader gaming community, are watching closely.
The outcome could set a precedent for how multinational gaming firms engage with Swedish labor institutions moving forward. For now, the clock is ticking toward the September 25 deadline, and the next few weeks of negotiation will determine whether King’s Swedish workforce will strike or reach a compromise that satisfies both the company’s operational needs and the unions’ demand for a stronger collective voice.