CWA Canada Files Complaint Against Ubisoft for Halifax Closure After Receiving Nearly $1 Billion in Tax Subsidies

Ubisoft Halifax Unionization and Controversial Studio Shutdown

In December 2025, the Ubisoft Halifax studio made headlines when a significant majority of its workforce voted for full union representation under the CWA Canada. Out of the studio’s 71 employees, 61 joined Local 30111, aligning themselves with other unions such as Bethesda Game Studios Montreal. However, just three weeks later, Ubisoft announced the unexpected shutdown of the Halifax studio, resulting in the layoff of all its employees, while maintaining that the decision was unrelated to the recent unionization vote.

Union Response and Legal Action

The CWA Canada swiftly reacted by declaring its intention to “pursue every legal recourse to ensure that the rights of these workers are respected and not infringed in any way.”This commitment has led to the union filing an official complaint with the Nova Scotia Labour Board concerning the studio’s abrupt closure. Alarmingly, reports have surfaced indicating that Ubisoft received approximately $1 billion CAD in tax credit subsidies over the past five years while operating in the province of Nova Scotia.

Tax Incentives: A Double-Edged Sword

It is common for provincial and state governments to provide tax breaks as incentives for businesses to establish operations within their jurisdictions. Ubisoft, known for its flagship game series Assassin’s Creed, has a history of successfully capitalizing on these incentives, particularly in Quebec, where favorable tax conditions facilitated the establishment of its Montreal office.

Upon investigating French Senate documents, the union discovered that Ubisoft had benefited from more tax breaks in Canada than in any other country, totaling hundreds of millions in tax credits over the last five years. CWA Canada highlighted that the company received around 605.6 million Euros (approximately C$980 million) from Canadian governments between 2020 and 2024.

Calling for Accountability

Union representative Smyth expressed indignation, stating, “It’s outrageous that a company can take hundreds of millions in tax breaks—public money—and then shut down an operation and lay off workers. We need immediate changes to hold companies accountable. The rules must ensure that if a business closes or significantly downsizes, it must repay any government subsidies.”

Allegations Against Ubisoft

The CWA Canada insists that Ubisoft’s decision to close the Halifax studio was a maneuver to prevent unionization efforts. Although Ubisoft claims the closure was unrelated to the union’s formation, the union contends that the decision caught employees off guard, contradicting Ubisoft’s assertions that the shutdown was anticipated as a necessity based on financial grounds.

In light of the shutdown announcement, sustained legal and public pressure from CWA Canada has led Ubisoft to consider increasing severance payments for the affected 71 workers. While it remains to be seen what further outcomes will arise from this situation, the pressures exerted by the union are set to influence how Canadian governments manage tax incentives for corporations in the future.

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