Movie stars' union strikes a deal with studios and streamers
American performers under union SAG-AFTRA have greenlit a fresh agreement with film studio giants in an overwhelming majority vote, bringing an end to a tense strike phase in Hollywood. The union had previously reached a preliminary deal with the Association of Motion Picture and Television Producers (AMPTP) toward the end of September 2023, focusing on minimum pay and improved health insurance benefits.
The revote saw 78% approval, as announced by SAG-AFTRA, with the new contract effectively in place until June 2026. In celebration of this milestone, union president Fran Drescher declared: "This golden age for SAG-AFTRA has never seen our union more influential."
Background
Prior to this breakthrough, the movie production and streaming markets had been disrupted by a strike involving not just SAG-AFTRA but also the Writers Guild of America (WGA) that started in May 2023.
For the first time in more than six decades, members from Hollywood's leading guilds – WGA and SAG-AFTRA – both went on strike simultaneously, pushing for better wages and superior working conditions. Production of films and series was stalled for several months due to the standoff.
Contextualizing the SAG-AFTRA-Telemundo Television Studios Contract
Seventeen months following the strike, SAG-AFTRA reached an agreement with Telemundo Television Studios, laying down regulations for the use of digital tools such as artificial intelligence. The contract will be in effect from October 1, 2024, to September 30, 2028.
Key provisions of the contract include:
- Digital replica regulations: Strict guidelines for the creation and application of digital replicas, necessitating explicit consent, and specifying the conditions of compensation for their utilization.
- Improved residuals: A boost in foreign and domestic residuals to 1.15% and 1.7% of receipts, respectively. Residuals for original Peacock series produced under Telemundo have also been introduced.
- Pension and health contribution percentage: The percentage contribution for pension and health benefits will rise by 1.5%.
- Enhanced meal penalties: Raised meal penalties and extended meal time grace period.
SAG-AFTRA's approval of the agreement
The SAG-AFTRA National Board, in unanimous approval, endorsed the agreement with Telemundo Television Studios, marking a triumph for Spanish-language performers.
The broader ramifications of industry-wide agreements
WGA's strike led to a historic pact with AMPTP in 2023, encompassing crucial provisions:
- AI regulations: Studios cannot employ digital avatars of actors without explicit authorization; the use of digital doubles or synthesized voices must be compensated adequately.
- AI-generated scripts: Writers will maintain control over the creative process, and AI-generated scripts will not substitute for human scribes; writers will be remunerated for revisions and edits.
- AI monitoring committee: An annual review of AI technologies on the industry will be conducted by a monitoring committee, which will propose amendments to the collective bargaining agreement.
Conclusion
These industry-wide agreements now provide enhanced protection and compensation for actors and performers, setting a new standard in labor practices within the entertainment industry. The strong and influential stand of SAG-AFTRA throughout this process has illustrated the critical role of collective bargaining in safeguarding workers' rights and interests.
