Hollywood Actors Union Recommends Strike as Talks with Studios Break Down
LOS ANGELES, July 13 (Reuters) – Negotiations between Hollywood’s actors union and studios have hit a wall, leading negotiators to unanimously recommend a strike. This development sets the stage for performers to join writers on picket lines as early as Thursday, potentially disrupting numerous shows and movies.
The SAG-AFTRA union, which represents 160,000 members, stated that its national board would vote on a strike order on Thursday morning. If approved, Hollywood studios would face their first dual work stoppage in 63 years, causing production shutdowns across the United States.
Both SAG-AFTRA and the Writers Guild of America (WGA) are demanding increases in base pay and residuals in the streaming TV era. Additionally, they seek reassurances that their work will not be replaced by artificial intelligence (AI). Concerns about the unauthorized use of actors’ digital likenesses have also been raised.
Fran Drescher, former star of “The Nanny” and the president of SAG-AFTRA, expressed her disappointment with the studios’ responses, calling them “insulting and disrespectful.” In a statement, she stated that the companies have refused to negotiate meaningfully on some topics and completely stonewalled on others.
The Alliance of Motion Picture and Television Producers (AMPTP), representing major companies like Netflix Inc and Walt Disney Co, expressed deep disappointment at SAG-AFTRA’s decision to walk away from negotiations. The AMPTP claims to have offered historic pay and residual increases, as well as a groundbreaking AI proposal aimed at protecting actors’ digital images.
The ongoing strike by approximately 11,500 writers has already caused significant disruptions. Late-night television talk shows are showing reruns, production for the fall TV season has been halted, and work on big-budget movies has come to a standstill.
If SAG-AFTRA goes on strike, all remaining U.S.-based studio productions will be shut down, escalating pressure on media companies to find a resolution. It has been over six decades since Hollywood faced two simultaneous strikes, with the last dual strike occurring in 1960 when members of the WGA and the Screen Actors Guild fought over residuals from films sold to TV networks.
Bob Iger, Disney’s CEO, commented on the situation, stating that the writers’ and actors’ unions have unrealistic expectations, voicing his concerns about adding further disruption during the ongoing recovery from the COVID-19 pandemic.
The main points of contention between the unions and studios are base pay and residuals from streaming services. Many actors rely on residual payments to qualify for health insurance, and they argue that the revenue generated from streaming services should be allocated in a way that supports those in need.
However, many streaming services have yet to turn a profit after investing billions of dollars in programming. Companies like Disney, Comcast Corp’s NBCUniversal, and Paramount Global have reported significant losses from streaming in the most recent quarter. Simultaneously, the rise of online video platforms has led to a decline in traditional television ad revenue.
The WGA’s ongoing strike has already had a ripple effect on California and beyond, impacting caterers, prop suppliers, and other businesses tied to Hollywood production. If actors also go on strike, the economic damage is expected to spread further.
Broadcast networks have already announced fall schedules heavily reliant on reality shows, which are unaffected by the current labor tensions. Additionally, independent productions not covered by union contracts can continue unaffected.
Reporting by Lisa Richwine; Editing by Alison Williams, Toby Chopra, Andrew Heavens, and Mark Porter