Hollywood Writers Guild Strikes Potential Deal, Actors’ Union Still at Standstill
Hollywood’s protracted labor conflict took a significant step towards resolution as the Writers Guild of America announced a potential deal to end their 146-day strike. Representing over 11,000 screenwriters, the guild aims to finalize the tentative agreement by Sunday, September 24. Guild members will have the opportunity to vote on whether to accept the deal, which addresses their demands for higher pay for streaming content, minimum staffing for TV shows, and protections against AI technology impacting writers’ credits and pay.
The negotiators from the Writers Guild expressed their satisfaction with the deal, highlighting the meaningful gains and protections it offers to all members. In contrast, the Alliance of Motion Picture and Television Producers, representing the studios, maintained caution and simply confirmed the tentative agreement.
While many in the entertainment industry see this potential accord as a crucial step towards stabilization, a significant portion of Hollywood remains at a standstill. Tens of thousands of actors continue their strike, with no scheduled talks between the actors’ union, SAG-AFTRA, and the studios.
Only productions that do not require actors, such as late-night and daytime talk shows, are set to resume quickly. However, over 100,000 behind-the-scenes professionals in Los Angeles and New York continue to face financial strain due to the ongoing strike. Governor Gavin Newsom revealed that the Hollywood shutdown has cost California’s economy over $5 billion.
SAG-AFTRA has been on strike since July 14, with demands surpassing those of the Writers Guild. The studios prioritized negotiations with the Writers Guild due to SAG-AFTRA’s leader, Fran Drescher, advocating for 2% of streaming show revenue, a demand considered non-negotiable by the studios.
Despite these challenges, the agreement with the Writers Guild could expedite negotiations with the actors’ union. Both writers and actors share concerns about the use of AI to create digital likenesses or alter performances without consent or fair compensation.
During the final stage of negotiations, artificial intelligence became a crucial point of discussion. Entertainment company lawyers addressed the guild’s concerns about AI and ownership of old scripts, with senior company leaders actively participating in the talks.
As the dual strikes persist, Hollywood workers have turned to over $45 million in hardship withdrawals from the Motion Picture Industry Pension Plan. Warner Bros. Discovery predicts a $300 million to $500 million reduction in adjusted earnings due to the strikes.
The potential agreement brings hope for Hollywood’s recovery, potentially preventing significant losses and financial hardships for workers. Nonetheless, the strike continues for actors, and the future of negotiations with SAG-AFTRA remains uncertain.
