eBay Inks Closing Agreement With TCGPlayer Union Following Boycott Pressure

eBay gives in to boycott pressure, makes severance and benefit concessions in closing agreement with unionized workers at subsidiary TCGPlayer.

The call to boycott came in following eBay's sudden announcement they will be closing the TCGPlayer authentication facility in Syracuse, NY, laying off over 200 employees, and moving those operations to a new facility in Louisville, KY in August.

eBay Shuts Down TCGPlayer Syracuse Warehouse, Lays Off Union Workers To Move Authentication Ops To KY

eBay is laying off over 200 unionized workers at TCGPlayer subsidiary in Syracuse, NY, will move authentication operations to Louisville, KY.

Value Added ResourceLiz Morton

eBay said the move was a difficult but necessary decision to get the business to break even, but workers in Syracuse who formed the first union in eBay's history pushed back on the corporate line, saying the decision was clearly aimed at busting the union after dragging out bargaining for over 600 days.

Workers said that eBay immediately brought in increased security after the announcement and escalated threats and intimidation, with guards allegedly saying they were getting paid hourly to “beat on people.”

That escalation lead the union to call for a boycott of both TCGPlayer and eBay on May 29th, with plans for rallies and picketing to try to force the company to reconsider the move, and the filing of an unfair labor practices claim with the National Labor Relations Board.

It now appears eBay and TCGUnion-CWA have come to a closing agreement, and while it will not result in the company keeping the operation in Syracuse open, the boycott pressure campaign was at least successful in gaining additional concessions and a better severance package for affected employees.

Today we ratified a closing agreement with eBay/TCGplayer with a unanimous vote. After several intensive days of bargaining, sustained pressure from your boycott, and the solidarity of our members, we were able to win a substantially improved severance package for TCGplayer workers.

This package includes:

• 20 weeks severance pay with an additional $2.50/hr above current wages for everyone within the bargaining unit, more than double what we were originally offered
• 6 months of COBRA medical coverage paid for by the company
• 7 months of continued mental health benefits
• $1,250 ratification bonus for everyone in the bargaining unit
  
  

This severance agreement makes sure that our members will land firmly on their feet as we all move forward. We are so grateful for the support the TCG community has shown us, and we would not have made it this far without you all. Thank you for standing with us in solidarity and being such great allies in our fight.

In this time of extreme inequality, it is more important than ever for the working class to organize. TCGunion-CWA built collective power for hundreds of workers in Syracuse, joining together to fight for fair treatment for all. We fought back against a multi-billion dollar corporation, changing our understanding of the power we wield, and we will carry that with us forever.

eBay could only beat our union by closing down the entire Authentication Center and leaving town. We live in a time of unchecked corporate power, and still we brought them to the table again and again. From Syracuse to Louisville, workers everywhere deserve rights, respect, and dignity on the job. As long as we don’t stop fighting for it, we will win.

In solidarity,
TCGunion-CWA

Current New York City Comptroller and Mayoral candidate Brad Lander had issued a strongly worded press release on June 2, criticizing eBay's actions in delaying bargaining and ultimately closing up shop to move to a lower wage, right to work state to bust the union - and raised eyebrows when that press release was subsequently deleted from his website.

When reached for comment about the removal of the press release, Lander's office advised when they learned that the company and union were engaging in negotiations, they took the statement down in support of those negotiations, but a revised statement would be issued shortly now that an agreement has been reached.

UPDATE: NYC Comptroller Brad Lander has issued a statement on the eBay TCGPlayer closing agreement, saying:

We commend the TCGunion for its tireless work to win a severance package that improves the livelihoods of its members. As eBay shareholders, we’ve long called on the company to negotiate in good faith with its organized workers.

While we commend the closing agreement effort, we remain deeply concerned with eBay’s decision to displace skilled workers and erode trust with its workers, investors, and customers.

We will continue to call on eBay to adopt better labor practices that support long-term shareholder value.

eBay acquired TCGPlayer in October 2022 in a ~$295 Million deal which initially left founder CEO Chedy Hampson and other key management in place, despite a history of strained labor relations which led to a previous unsuccessful union drive in March 2020 that received national media attention and public support from Senator Bernie Sanders.

It was largely missed by media and analysts, but unsuckEBAY noted at the time that in-house authentication at TCGPlayer and previously acquired Sneaker Con operations were a "significant step-change" for the company as it departed from the asset light, "just a venue" model that had previously protected it from unionization efforts which had targeted competitors like Amazon.

The previous unionization efforts and ongoing labor issues raised questions about due diligence and disclosure in the TCGPlayer acquisition and what the implications could be for eBay's other labor centric operations, leading both Hampson and eBay Chief Accounting Officer Brian Doerger to step down from their positions with no official explanation and less than two weeks notice.

eBay Chief Accounting Officer Exit Amplifies TCGPlayer Due Diligence Concerns

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Value Added ResourceLiz Morton

The workers won their vote in March 2023, officially becoming the first US union in eBay history.

TCGPlayer Workers Win Vote, Become First eBay US Union

Authentication workers at eBay-owned TCGPlayer win union vote, becoming first official US union in eBay history!

Value Added ResourceLiz Morton

eBay hired Kristi Selby as their new Head Of Labor Relations last year, and put the union-avoidance and delay tactics she ostensibly learned in her decade plus stint at Nestle to good use dragging out the bargaining process with TCGUnion-CWA.

eBay Has A New Head Of Labor Relations As Kristi Selby Joins From Nestle - What Does It Mean For TCGPlayer Union?

eBay has new Head of Labor Relations as self-styled “employee relations guru” Kristi Selby joins company after 12 years in labor roles at Nestle.

Value Added ResourceLiz Morton

The TCGPlayer acquisition has also brought additional regulatory scrutiny on eBay, which is still under a 3 year compliance monitoring program as part of a deferred prosecution agreement with the DOJ after being criminally charged in connection to the 2019 cyberstalking of journalists Ina and David Steiner of EcommerceBytes.

eBay Compliance Monitoring - What Does Cyberstalking Have To Do With M&A Due Diligence & Risk?

eBay’s deferred prosecution deal with DOJ raises question - what does Mergers & Acquisitions due diligence have to do with cyberstalking scandal?

Value Added ResourceLiz Morton

While the closure of the Syracuse, NY facility would appear to be the end of eBay's union battle for now, the company still operates multiple authentication facilities for trading cards, sneakers, hand bags, watches, and luxury fashion across several states in the US as well as Canada, UK, Germany, Japan, and Australia and could face additional organizing efforts in the future.

eBay Opens New KY Sneaker Authentication Facility As Labor Troubles Linger

eBay hiring ops & HR talent for new Louisville, KY sneaker authentication center as physical warehouse footprint increases labor challenges.

Value Added ResourceLiz Morton

eBay is also still facing active lawsuits from ex-employees alleging discrimination, retaliation and violations of both federal and NY state labor laws.

eBay Accused Of Breaking NY, Federal Labor Laws In Sneaker Authentication Workers Class Action Suit

eBay faces class action suit from authentication workers alleging company violated Fair Labor Standards Act & New York Labor Law requiring manual laborers to be paid weekly.

Value Added ResourceLiz Morton

eBay has not responded to request for comment at time of publishing.