Hunger Strike and Layoffs at Evolution Georgia

18/08/2024 | Categories: News | Published by: Heather | Last updated: 18/08/2024

Three employees of the Georgian online casino, Evolution Georgia have taken their protest to a new level by starting a hunger strike on the 33rd day of their ongoing strike. They’ve made it clear they won’t eat until their demands are met.

The strike began on July 12 and involved about 5,000 workers, more than half of the casino’s staff. However, the casino management claims that only 800 employees are participating. The striking workers are mainly demanding better pay and improved working conditions.

The Labor Trade Union, representing workers in agriculture, trade, and industry, says that both the strike and the hunger strike will continue indefinitely.

The Working Conditions at Evolution Georgia

A striking worker, Nanuka Nadiraidze, a single mother who works 22 nights a month as a croupier, shared her story: “I worked 12 hours, shaking with fever.” This shows the tough conditions workers face at the casino.

The union has called on the government, the president, the ombudsman, political parties, and non-governmental organizations to step in and address what they describe as the company’s violent and provocative actions. They also urge these entities to prevent the hunger strike, particularly as the workers involved are aged 18 to 25.

According to the union, the responsibility for what happens next lies with the management of “Evolution Georgia,” which they accuse of trying to intimidate and mistreat employees. The union also holds the government accountable for not protecting citizens from a company that they say imposes unbearable working conditions.

Negotiations Failed

The strike was prompted by the failure of negotiations with the company’s management. Workers had sent 44 appeals before announcing the strike but talks ended on June 24 without any resolution. Nikoloz Katarapiashvili, a union organizer, blames the management’s dismissive attitude for the lack of progress.

On August 5, Evolution Georgia responded by stating that it might shut down operations in Georgia if the situation doesn’t improve. Reports suggest the company has already moved most of its gaming tables to Armenia, leaving only managers and cleaning staff in the Tbilisi location. The company claims that its decision to suspend activities is due to the illegal behaviour of the strike organizers and participants.

Evolution Georgia is part of the Swedish Evolution Gaming Group, which started operating in Georgia in 2017. The company offers “live dealer” services where players can interact with real dealers via live broadcast, placing bets with real money. The Georgian branch employs around 8,000 people, some of whom have formed their own union to fight for better working conditions.

1000 Jobs Cut

In response to the ongoing strike at Evolution Georgia, the company announced that it was cutting 1000 jobs. According to Evolution, the strike has significantly disrupted their operations in Georgia and led to a loss of customer confidence.

The job cuts come after four weeks of industrial action led by a local union. Which Evolution says has made it difficult for them to meet customer needs. Last week, the company warned that it might reduce its presence in Georgia. After strikers blocked entrances at their Tbilisi facilities, forcing them to close their studios.

“This regretful decision was not taken lightly,” Evolution stated when announcing the layoffs. The company blamed the union’s actions for damaging its operations in Georgia. They said that many customers no longer want to operate their gaming tables in Georgia.

As part of their restructuring, Evolution plans to move many customer-specific gaming tables to other studios worldwide. The layoffs and the relocation of gaming tables have already begun, and the company warned that more cuts could happen if the situation doesn’t improve.

Background of the Strike

The strike, which began in mid-July, was started due to allegations of poor working conditions at Evolution’s Tbilisi office and live gaming studio. The local trade union, representing about 5,000 of Evolution Georgia’s 8,000 employees, called for the strike after negotiations with the company failed.

Initially, Evolution downplayed the strike, claiming that only about 500 workers were participating. However, by early August, the situation escalated when around 2,000 morning shift employees did not show up for work, putting even more strain on the company’s operations.

Social Media Backlash

Evolution’s decision to lay off workers has sparked a backlash on social media. Many employees and members of the public criticized the company’s handling of the situation. Some accused Evolution of trying to blame the union for its own shortcomings. While others called on the company to start negotiations and address long-standing grievances about unfair treatment.

One person noted, “Ignoring so many dissatisfied employees will not make the company right and just.” Another suggested that the company should personally apologize to the 1000 people losing their jobs.

No Reversal of the Decision

In its statement, Evolution emphasized that it respects employees’ rights to freedom of association and collective bargaining. But also stressed that it expects all parties to follow the law. The company expressed regret that the actions of a smaller group of individuals have led to such widespread consequences.

Evolution also urged those considering further protest actions to avoid putting their health or the health of others at risk. The company made it clear that the layoffs were a direct result of the permanent damage caused by the strike. Furthermore, they said that they would not reverse the decision.