After four days of marathon negotiations, the Writers Guild of America (WGA) is on the verge of reaching a deal with major film and television studios, according to sources familiar with the matter. The major studios have delivered their “best and final” offer to the striking writers, signaling a potential end to the nearly five-month-long strike, the second-longest in the union’s history.
The WGA represents over 11,000 writers who have been demanding better wages, residuals payments from streaming services, and job protections against the use of artificial intelligence. Many writers have struggled to make a living under the current industry structure, with the growth of original content on streaming services leading to meager residuals and fewer opportunities for employment.
The strike has had a significant economic impact, with economists estimating nationwide losses of over $5 billion. Various industries, including restaurants, service firms, and prop shops, have felt the ripple effects and have been forced to cut staff. In New York alone, the disruption of 11 major productions resulted in a loss of $1.3 billion and 17,000 jobs, according to Empire State Development.
However, even if the WGA reaches a deal, the Hollywood machine cannot fully resume until the Alliance of Motion Picture and Television Producers (AMPTP) resolves its dispute with the Screen Actors Guild-American Federation of Television and Radio Artists (SAG-AFTRA), which represents about 160,000 actors. The potential WGA deal could increase pressure on SAG-AFTRA to settle for a similar agreement, as the two unions have operated in tandem throughout their respective strikes.
These strikes are part of a larger pattern of labor disputes sweeping the country. Thousands of workers, including nurses, sanitation workers, UPS employees, and Starbucks baristas, have walked off the job in recent months. The United Auto Workers Union also called a strike against the three largest automakers in the country.
This “summer of strikes” reflects the growing discontent among lower- and middle-income workers who have long argued for better pay and working conditions. These workers believe that stagnant wages and widening inequality have reached a tipping point, leading to a resurgence of more aggressive tactics to ensure equitable treatment.
This report has been updated with additional information.