The union for kickstarter employees reached an agreement with management to protect workers who were fired on Friday, said in a press release. The crowdfunding company announced on April 20 that an internal memo would require layoffs along with other cost saving measures. CEO Aziz Hazan noted that kickstarters have seen a 35% drop in new crowdfunding projects on the site over the past few weeks without any signs of a new rebound.
Kickstarter United, which accounts for 60% of the 140 employees, includes a four-month severance pay for all dismissed employees, withdrawal of a non-competition contract to a person who has agreed to retire, and a year. The company will continue to provide medical insurance for up to six months, depending on the salary for the dismissed employee.
Kickstarter spokesman David Gallagher said The budge On Saturday, the company offered voluntary repurchases to union members. This includes the ability to refuse health insurance coverage and receive partial payments.
“We need to put our kick starters in a more powerful position to overcome this uncertainty, so we can continue to support missions that help us realize our creative projects. He added that non-union workers are receiving similar offers. Gallagher said that once the company knows who is interested in buying it, they will be able to decide how many layoffs are needed.
Kick starter workers succeeded in a union resolution in February. These are represented by the Office and Professional Employees International Union (OPEIU).
Hassan said in a note on April 20 last year that Kick Starter reinvested in the business last year with a tax of $ 1.17 million. He cited other cost saving measures besides firing, including a reduction in senior management salaries and some vacancies.
“We were disappointed with the layoffs announced by Kickstarter executives, but we are proud to stand shoulder to shoulder with the entire union family in a multifaceted fight for the family's future, and Kickstarter executives are willing to thank you for fair trade negotiations. OPEIU President and Richard Lanigan, 153 Business Manager, said in a statement.
The union could include up to 45% of kick starter employees in the layoffs, but Gallagher said, "I didn't mention the size of the layoffs."
UPDATE May 2 10:45 AM ET: Kick Starter comments and OPEIU contact comments have been added.