Global Courant
Notable WGA (Writers Guild of America) members pick up with notable SAG-AFTRA members outside Paramount Studios on September 18, 2023 in Los Angeles, California.
Mario Tama | Getty Images
Hollywood writers and studios have finalized the wording of a tentative contract that will end a nearly 150-day labor strike.
Union leaders “voted unanimously to lift the restraining order and end the strike effective Wednesday, September 27 at 12:01 a.m. PT/3:01 a.m. ET,” the WGA said in a statement.
The talks between the Writers Guild of America and the Alliance of Motion Picture and Television Producers, which includes top studios such as Disney, Paramount, Universal and Warner Bros. Discovery, were resumed after months of starts and stops, ultimately leading to a tentative deal.
The deal runs until May 2026 and includes a 5% minimum wage increase upon ratification of the contract. On May 2, 2024, another 4% increase will occur, and on May 5, 2025, another 3.5% increase will occur.
Writers could gain significant protection against the use of artificial intelligence. AI cannot write or rewrite literary material and material generated by AI will not be considered source material.
When it comes to streaming, the guild has negotiated a new residual based on viewership. Video-on-demand series and high-budget subscription films that are viewed by 20% or more of domestic services in the first 90 days after release will receive a bonus equal to 50% of the fixed domestic and foreign residual amount. Views are calculated based on the hours of domestic streaming of the season or movie divided by its running time.
This new structure goes into effect on January 1 and means writers will receive a bonus of $9,031 for a half-hour episode, $16,415 for an hour-long episode, or $40,500 for a streaming feature with a budget over $30 million.
Streamers will also provide the guild with the total number of hours streamed both nationally and internationally for high-budget, self-produced streaming programs such as the Netflix original series.
Across the board, writers will see higher contributions to their health and pensions, as well as higher contributions to writing teams.
The agreement also improved screenwriter compensation, the minimum number of writers’ rooms and revamped a $250,000 showrunner training program, among other articles.
The negotiating committee recommended the agreement and sent it to the Writers Guild of America West Board and the Writers Guild of America East Council for approval. Both the board and council voted to approve a vote on member ratification of the contract.
WGA members have until Oct. 9 to cast their votes on the contract, the union said.
Once negotiations with writers are completed, the AMPTP will need to focus on negotiations with the Screen Actors Guild-American Federation of Television and Radio Artists. Acting guild members have been on strike since mid-July and are seeking contract updates similar to those requested by the writers.
The WGA contract could serve as a model for SAG-AFTRA to craft its own deal with Hollywood studios.
Like writers, actors want to improve wages, working conditions, and health and retirement benefits, and set up guardrails for the use of AI in future television and film productions. In addition, the union is seeking greater transparency from streaming services about viewership so that remaining payments can be made fair for linear TV.
SAG-AFTRA has also tried to standardize the self-tape process, which became popular during the pandemic. Previously, actors had a level playing field with in-person camera tests, but in recent years actors have seen disparity in auditions between those who can afford quality cameras and lighting equipment and those who cannot.
Disclosure: Comcast is the parent company of NBCUniversal and CNBC. NBCUniversal is a member of the Alliance of Motion Picture and Television Producers.
