King, the Swedish-founded studio behind Candy Crush, has declined a request for a collective bargaining agreement (CBA) after almost a year of negotiations with employees represented by Unionen and Sveriges Ingenjörer.
King president Todd Green informed staff of the decision by email in June 2026. He said the choice had not been made lightly and outlined two main reasons for rejecting the proposed agreement.
Why King rejected the agreement
King said its existing benefits package is better suited to employees in Sweden. The company pointed to enhanced pension arrangements, long-term sick pay, private health insurance and parental leave.
Although a CBA would not necessarily prevent King from keeping those benefits, the company argued that the agreement would require changes to how they are structured. King believes those changes could leave Swedish employees worse off.
The company also said its current operating model remains the right fit, including for its Swedish operations. King has several studios across Europe and the United States, and said it wants to preserve a consistent experience for employees across the business.
In King’s view, a Swedish CBA would require substantial changes to local processes, policies and working practices. Green also acknowledged that employees want stronger dialogue, more chances to ask questions and clearer explanations for decisions affecting them.
King said the decision was not intended as a criticism of trade unions or Sweden’s labour model. The company said it would continue working with its workplace union representatives in an open, respectful and constructive manner, while consulting unions where required.
How Swedish workplace unionisation works
Sweden’s union system differs from the model commonly used in the United States. Eligible workers can join a trade union representing their profession, while unions negotiate sector-wide conditions such as pay and sick leave. Members may also receive services including legal advice.
Union membership is widespread in Sweden, with approximately 70 per cent of employees belonging to a trade union, according to Unionen, the country’s largest private-sector union.
Employees at an individual company can also establish a workplace union club. Members elect a board, which can negotiate a company-specific CBA with management. The process has been used by studios including Paradox Interactive and Avalanche Studios.
An employer can reject a proposed CBA, but it must negotiate in good faith. Employees may respond with collective action to push for renewed discussions, although it is not known whether King staff are considering that option.
King’s union campaign
King employees formed a workplace union club in late 2024. The move followed the sudden removal of a private doctor benefit and wider discussions about giving employees more influence over significant workplace changes.
Talks over a CBA continued from 2025, during a difficult period for the company. King experienced a major round of layoffs around the same time and was later affected by large-scale cuts at Xbox in June 2026. The number of affected workers based in Sweden is unclear.
Microsoft announced a labour neutrality agreement with the Communications Workers of America in 2023. Under that arrangement, Microsoft pledged to remain neutral when covered employees expressed interest in joining a union. The company has not made equivalent commitments with other unions.
For more industry coverage, visit the RETROCADE Arcade Blog, where workplace developments sit alongside broader gaming news. Readers exploring dedicated hardware can also compare options in the arcade machine buying guide or browse available arcade machines.
What the unions and King said
Unionen said King had decided against entering a CBA despite clear support from employees seeking greater security, transparency and influence at work. The union said it had no further comment on King’s explanation.
“There is strong union engagement among employees at King, and many see a collective bargaining agreement as a way to secure transparent terms and conditions, greater security, and meaningful workplace influence.”
“The decision is naturally disappointing to many of the members who have actively supported the effort to reach an agreement.”
Unionen said it would continue supporting its members and discuss the next steps after the summer. Its longer-term aim remains increasing the number of Swedish workers covered by collective agreements.
King confirmed that it had reached the decision after negotiations with Unionen and Sveriges Ingenjörer, and that employees were notified in June 2026.
“This has been an important topic, and we have taken the time needed to follow the right process and carefully assess what a Collective Bargaining Agreement would mean for King, our people and the way we work.”
King said it respected Sweden’s labour market model, collective agreements and organisations working to protect employee conditions. It also said its employment terms were fair and competitive, and that its benefits and conditions matched or exceeded what a CBA would provide.
The company added that it had established constructive discussions with local union representatives and would continue a respectful and transparent dialogue about important employee matters, despite not entering a CBA at this time.
Sveriges Ingenjörer, which also represents King employees, had been contacted for comment.
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