Hollywood Writers Reach Tentative Deal on New Labor Contract After 4.5-Month Strike
After more than four-and-a-half months on strike, Hollywood writers have finally reached a tentative deal with studios on a new labor contract. The agreement was announced on Sunday following intense bargaining sessions between the Writers Guild of America (WGA) and the Alliance of Motion Picture and Television Producers (AMPTP). The terms of the deal, which have not been disclosed, still need to be ratified by the WGA’s approximately 11,000 members.
The WGA negotiating committee said in an email to its members, “We can say, with great pride, that this deal is exceptional – with meaningful gains and protections for writers in every sector of the membership.” However, the details of the agreement cannot be shared until finalized in the contract language.
High-profile studio chiefs, including Disney CEO Bob Iger and Netflix CEO Ted Sarandos, took part in the negotiations. The AMPTP presented their newest proposal to the WGA on Saturday, and further discussions on Sunday eventually led to the finalized agreement.
Tentative leadership votes on the agreement are scheduled for Tuesday. Once approved, the details will be shared with the members, and a full vote will be scheduled. Furthermore, the leadership needs to vote to officially end the strike. Until then, the negotiating team emphasized that no one should return to work until authorized by the Guild, although they have suspended the WGA picketing.
The conclusion of the writers’ strike may now pave the way for the AMPTP to resume talks with the Screen Actors Guild-American Federation of Television and Radio Artists (SAG-AFTRA). The SAG-AFTRA, with approximately 65,000 actors, had joined the WGA on the picket lines since mid-July, resulting in a halt of all scripted production in Hollywood.
The simultaneous strike of the two unions, which occurred for the first time since 1960, has had a significant impact on California’s economy. The film and television production industry accounts for over 700,000 jobs and nearly $70 billion in wages each year in the state.
Issues related to both unions include increasing residual payments from streaming services and concerns about the use of artificial intelligence. The WGA argued that the streaming model has endangered the financial stability of middle-class writers, leading to intermittent and inconsistent work. They also highlighted staffing cuts in television writers’ rooms and the difficulty of sustaining year-round employment due to shorter seasons. The transparency of streaming viewership data was another key demand.
In response to the allegations of television writing becoming “gig” work, the AMPTP claimed that most television writers receive guaranteed weeks or episodes when hired, along with producing credits and substantial fringe benefits. They emphasized that writers enjoy pension contributions and healthcare benefits superior to those received by many full-time employees.
Notably, the strike’s resolution does not affect CBS News, as it is part of Paramount Global, which includes Paramount Pictures involved in the negotiations. Some CBS News staff are members of SAG-AFTRA or Writers Guild, but their contracts remain unaffected.
The conclusion of the writers’ strike brings relief to the entertainment industry, allowing for a resumption of production and the potential for further negotiations between the studios and actors’ union.