Hollywood Actors Union Strikes Against ‘League of Legends’ Over Alleged Labor Infringements

“League of Legends” finds itself ensnared in a significant conflict between Hollywood’s actors union and an audio company integral to its operations. The Screen Actors Guild-American Federation of Television and Radio Artists (SAG-AFTRA) initiated a strike against the game on Tuesday, accusing Formosa Interactive of attempting to circumvent the ongoing video game strike by employing non-union actors for an unrelated project.

SAG-AFTRA alleges that Formosa made efforts to “cancel” the unnamed game, which was under the strike’s coverage, soon after the work stoppage began. The union claims that when Formosa realized cancellation was not feasible, the company covertly transferred the game to a shell company and issued casting calls specifically for non-union talent. In retaliation, SAG-AFTRA’s interactive negotiating committee unanimously decided to file an unfair labor practice charge with the National Labor Relations Board and to extend the strike to “League of Legends.”

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“It’s bad enough that Formosa and other companies are refusing to agree to the fair AI terms already accepted by industries such as film, television, streaming, and music, as well as by over 90 other game developers,” said Duncan Crabtree-Ireland, SAG-AFTRA’s national executive director. “Engaging in illegal unfair labor practices is intolerable and will not be accepted by our members.”

“League of Legends,” a flagship project for Formosa, receives voiceover services from the company, according to SAG-AFTRA. The union accused Formosa of breaching labor laws by hindering performers’ rights to unionize and by discriminating against union members.

Formosa has swiftly denied the union’s allegations, stating that the company has not acted in a manner that undermines employee or union rights. “We believe the strike on ‘League of Legends,’ a game unrelated to the union’s claims, is unfounded,” said Paul Lipson, senior vice president of Formosa Group. “We support global game development that is safe and ethical for all involved.”

The strike occurs amidst challenges within the video game industry, marked by reduced demand and a constrained supply environment. This situation has led game publishers to increasingly depend on external contractors, posing reputational risks if these partners act unethically, explained Joost van Dreunen, author of “One Up: Creativity, Competition, and the Global Business of Video Games.”

This year’s unprecedented layoffs in the industry have caused more companies to outsource work to firms like Formosa, raising concerns about potential damage to reputations. “Even reputable companies like Riot Games, which is not implicated here, see their risks escalate due to their partners’ actions,” van Dreunen said. “Publishers must ensure all their partners uphold ethical standards to safeguard their brands.”

Riot Games, the developer of “League of Legends,” emphasized its detachment from the union’s complaint. In a statement, the company clarified, “Since becoming a union project five years ago, ‘League of Legends’ has only engaged with union performers in the U.S. and has never suggested otherwise. Furthermore, we’ve never asked Formosa to cancel any game we’ve registered.”

SAG-AFTRA’s accusations pertain to a non-Riot game, as clarified by the game publisher. The union has directed its members to cease all services for “League of Legends” immediately. Until now, the game was among several titles not affected by the strike, despite Formosa being a union signatory.

“League of Legends is a game of champions. Instead of honoring the talented union performers who bring beloved characters to life, decision-makers at Formosa have chosen to sidestep and abandon them,” said Sarah Elmaleh, Chair of the Interactive Media Agreement Negotiating Committee. “Such behavior from a longtime committed union signatory is deeply disappointing.”

SAG-AFTRA had previously initiated a strike against major game companies in July following a breakdown of year-long negotiations concerning the union’s interactive media agreement, which focused on unregulated artificial intelligence issues. Formosa is part of the bargaining group involved in these talks.