Evolution’s NetEnt Acquisition Gives Rise To Industrial Dispute Related To Layoffs

Article by : Helen Dec 28, 2020

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Owning around 96% of the outstanding NetEnt’s shares, Evolution Gaming takes full control over the industry-leading giant. The €1.8 billion acquisition happened in June 2020, when NetEnt accepted Evolution’s offer to buy more than 90% of its corporate shareholding at €7 per share. Now, when the deal has been closed, NetEnt is waiting for a total reorganization and integration with its new owner. Therese Hillman, who is still considered to be the current owner of NetEnt, will support the integration process and will leave the company at the end of Q1 2021.

Evolution Gaming will definitely benefit from the acquisition and will have great chances to become one of the biggest casino software suppliers in the world. However, there are already some roadblocks on its way of reorganizing the NetEnt company. For example, the NetEnt company has started cutting jobs, which was appealed in court by the General Workers Union (GWU).

After the deal had been struck, many employees were sent home to wait for further instructions from their employer. NetEnt hasn’t provided figures on how many employees will lose their jobs, but some respected media sources claim that several hundred employees are likely to be made redundant following the deal. Overall, there are more than a thousand of NetEnt’s employees around the globe, and many of them are now worried about getting a chain letter.

The Maltese government promised to support those who might get affected by the deal. The Economy Ministry stated there was a discussion that aimed to find alternative jobs for those employees who would lose their jobs at NetEnt.

There are currently over 700 open vacancies within the Maltese islands. Many companies have reached out to us to match skills with those made redundant. Job casualties in the sector are related to mergers and take-overs, not Covid-19.

The General Workers Union went even further and declared an industrial dispute related to job cutting. The labor union claims that NetEnt appointed its own employee representative instead of acknowledging that the union itself is the employee representative for planned layoffs. According to Malta’s Collective Redundancies Regulations, the employer who plans to declare the collective redundancy should notify the employee representative about it in writing form. NetEnt failed to do it. Besides, it violates the Transfer of Business Regulations provisions that provide additional support for the merger-related redundancies.

The GWU believes that ignoring the consultations with the union was an intentional action that limited the workers’ opportunities to enforce their rights. The GWU also added that most employees were notified about the planned layoffs way too late, and some of them were “escorted out of their place of work that same day by the new owners.”

Malta’s Superior Court sided with the GWU’s urgent request and granted an injunction, putting the layoffs on hold, at least until the next hearing that is about to be held on 17 December. Thanks to the Court’s quick response, 324 illegal layoffs will be blocked now. The GWU will keep insisting that the two casino software suppliers fulfill their consultation obligations, do everything possible to save the jobs, and ensure that appropriate compensation is paid in cases when saving the job is impossible.

Meanwhile, employees who are at risk of losing their jobs may register for employment through the Jobsplus service or ask for help via a dedicated helpline set up by the Maltese government.

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