WGA Reaches Tentative Deal and Hollywood’s Actors Take Center Stage Amidst Labor Negotiations

The WGA tentative deal has put Hollywood’s actors back in the spotlight. Screenwriters and major entertainment studios reached a tentative agreement on a new labor deal Sunday night. As a result, the industry is on the brink of a resurgence. However, a significant hurdle remains: resolving the strike involving tens of thousands of actors.

The WGA tentative deal and the actors’ strike

Communication between the actors and the studios has been dormant for over two months. No talks are scheduled. Leaders of SAG-AFTRA, the actors’ union, have expressed a willingness to negotiate. Meanwhile, the studios strategically prioritized negotiations with the writers in early August.

The impassioned rhetoric of Fran Drescher, the union’s president, influenced this decision in part. She delivered fiery speeches, including one where she criticized studio executives as “medieval-era land barons.”

“After all, the people eventually breach the gates of Versailles,” Ms. Drescher declared in July when the actors’ strike was initiated. “And then, it’s over. We’re at that moment right now.”

Ms. Drescher’s public statements have been more restrained in recent weeks. However, only a resolution with the actors will determine when tens of thousands of industry workers can return to their jobs. They include camera operators, makeup artists, prop makers, set dressers, lighting technicians, hairstylists, and cinematographers.

Reactions from the unions

In a statement on Sunday night, the actors’ union congratulated the Writers Guild of America, which represents over 11,000 screenwriters. It also expressed eagerness to review the tentative agreement with the studios. In addition, it emphasized its commitment to securing favorable terms for its members.

With a tentative deal secured, the Writers Guild halted picketing. Actors, however, are set to resume protests on Tuesday after a pause for Yom Kippur on Monday. Actress Frances Fisher, a member of the SAG-AFTRA negotiating committee, urged solidarity on Sunday via X (formerly Twitter). She stated, “We need everyone on the line Tuesday-Friday. Show us your #Solidarity!”

Numerous Writers Guild members pledged their support for the actors. Amy Berg, a Writers Guild strike captain, affirmed, “I know there’s a huge sign of relief reverberating through the town right now, but it’s not over for any of us until SAG-AFTRA gets their deal,” in a post on X.

However, this support has its limitations. Writers Guild negotiators were unable to secure the contractual right to honor other unions’ picket lines. As a result, writers may have to return to work before a ratification vote is finalized.

Pressure to resume talks with the actors

It has been 74 days since the actors’ union and the Alliance of Motion Picture and Television Producers, which represents the studios, engaged in talks. This is likely to change soon. Salvaging the 2024 theatrical box office is critically important, and it is at significant risk if Hollywood cannot resume production within the next month. In addition, the window for TV production for the remainder of the year is narrowing, given the approaching holidays.

Resuming talks with the actors’ union is a more complex endeavor than it may seem. First, SAG-AFTRA officials will need time to analyze the deal points the Writers Guild achieved. These wins and compromises will shape a new bargaining strategy for the actors. Additionally, discussions between studios and writers only recommenced after behind-the-scenes discussions about the most challenging issues and an assessment of the willingness to negotiate. Studios are likely to adopt a similar approach with the actors.

According to an insider intimately involved in the process, negotiations between actors and the studios may restart as early as next week. This individual spoke on the condition of anonymity due to the sensitive nature of the strike. Neither SAG-AFTRA nor the studio alliance commented on Monday.

Bobby Schwartz, a partner at Quinn Emanuel and a veteran entertainment lawyer representing major studios, commented, “There’s tremendous pressure on both sides to get this done.” He added, “The deal that the Writers Guild and the studios struck economically could have been worked out in May, June. It didn’t need to go this long. I think the membership of SAG-AFTRA is going to say we’ve been out of work for months, we want to go back to work, we don’t want to be the ones that are keeping everybody else on the sidelines.”

The cost of the concurrent strikes

Writers and actors have been on strike at the same time, a situation not seen since 1960. These strikes have effectively halted TV and film production for months. The repercussions have been substantial, both within and beyond the industry. Governor Gavin Newsom stated that California’s economy alone has incurred losses exceeding $5 billion.

Warner Bros. Discovery recently announced that the labor disputes’ impact would lower its adjusted earnings for the year by $300 million to $500 million. Moreover, share prices for other major media companies like Disney and Paramount have declined in recent months.

What the writers’ agreement includes

On Sunday night, the industry took a significant step towards stability with the tentative agreement between writers and studios. It effectively concluded a 146-day strike. The specific details of the terms have not been disclosed. However, the agreement encompasses many of the writers’ key demands. These include enhanced compensation for streaming content, concessions from studios regarding minimum staffing for TV shows, and assurances that artificial intelligence technology will not infringe on writers’ credits and compensation.

In an email to members, the Writers Guild’s negotiating committee expressed pride in the agreement. It asserted, “We can say, with great pride, that this deal is exceptional — with meaningful gains and protections for writers in every sector of the membership.”

On Monday, President Biden lauded the deal. He recognized it as a step toward enabling writers to resume their crucial work in storytelling.

What the WGA tentative deal means for the actors

The writers’ deal is expected to serve as a blueprint for the actors, given the similarities in their demands. Like screenwriters, actors contend that the rise of streaming has adversely affected their compensation levels and working conditions. They also share concerns about the potential use of artificial intelligence to create digital likenesses or alter performances without consent or compensation. In addition, they seek robust safeguards against such practices.

However, the actors have put forth several demands that the studios have resisted. These include a revenue-sharing arrangement for successful streaming shows. Additionally, actors have requested substantial wage increases, including an 11 percent raise in the first year of a new contract. The studios proposed a 5 percent raise.

The entertainment industry anticipated a potential work stoppage by writers from the beginning of the year. The actors’ unexpected determination this past summer, however, caught studio executives off guard.

In June, over 60,000 actors voted overwhelmingly in favor of authorizing a strike, with 98 percent support. That margin even surpassed the writers’ strike authorization. As negotiations progressed, the actors presented the studios with a list of demands. This list totaled 48 pages, nearly three times the size of their requests during the previous contract negotiations in 2020.

During this period of bargaining, more than 1,000 actors, including Meryl Streep, Jennifer Lawrence, and Ben Stiller, signed a letter to guild leadership. They expressed their preparedness to strike. A little over two weeks later, the union called for a strike.

Key takeaways

• Screenwriters and studios reached a tentative agreement Sunday night, which effectively concluded a 146-day strike.
• The actors’ strike continues, and it has been 74 days since the actors’ union and the studios’ alliance engaged in talks.
• The writers’ deal is expected to serve as a blueprint for the actors.
• The actors have asked for an 11 percent raise in the first year, while the studios proposed 5 percent.

Related reading on Creative Geniusess

• Hollywood Strike Resolved: SAG-AFTRA and Studios Reach Tentative Deal
• SAG-AFTRA & Studios To Meet Monday to Resume Strike Negotiations
• Major Breakthrough Writers Set to Return to Work on 09/27/2023 After Lengthy Strike
• Strikes Take Toll on Hollywood: About 17,000 Jobs Lost in California’s Entertainment Industry

Learn more about the Writers Guild on Wikipedia.