For the past several months, Evolution has faced a company strike at its facility in Georgia, where hundreds of employees have rallied against what they have alleged to be dangerous working conditions and exploitation.
The sensitive topic was naturally brought up during the company’s third-quarter earnings call during which CEO Martin Carlesund addressed the ongoing strike and argued that the allegations against the company were unsubstantiated.
He outright denied that the company had created a dangerous work environment, insisting instead that the working conditions in Georgia were "great" and that the conditions on-site at the Georgian studio were aligned with those in any other European studio the company has, offering competitive salaries and attractive terms of employer.
Yet, for 300-odd workers, these statements have rung hollow, prompting them to risk their jobs to get better working conditions.
"We have created a great work environment with the same standard as in any other European studio. We have competitive salaries and overall, very attractive terms," Carlesund stated during the earnings call.
The executive said that the company supported unions and the right of individuals to participate in unions but insisted that such organizations ought to adhere to established legislation and union values.
Carlesund also criticized what his company saw as the proliferation of disinformation in the media. The executive drew attention to the fact that some protesters have taken to what in his view have been unlawful and extreme means, such as blocking the entrance to the building and vandalizing the company’s office spaces in Georgia.
"There's been a lot of disinformation and blunt lie spread by the union in Media and one of many examples is the strike is the strike participation," he added. The original number of participants started at 500, but has now fallen to 300 people, Carlesund added, and pointed out that Evolution had a working force of anything between 7,500 and 8,000.
Overall, Evolution has been disheartened about its Georgian operations. The company argues that it has reduced its operational capacity there to60%of what the studio could host and is not expecting to see the venue's full capacity restored.
Morgan Stanley’s Edward Young asked Carlesund if Evolution had seen an outflux of players because of the reduced capacity at the Georgian studio. The executive acknowledged that things have not been "positive" but did not go into so much detail as to say how and if any players have been lost, arguing that the studio itself did not have an exact figure.
Regulus Partners, an analyst firm that has been following the strike up close, has previously commented that although Evolution has been expanding in other directions, and building new studios, Georgia has been more or less its backbone and one of the most successful establishments, which must have had an impact on growth and performance for the company.
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