US actors' union seals new contract with studios

Movie Stars Secure Agreement with Hollywood Studios and Streamers

Following a landslide majority vote, the actors' union SAG-AFTRA has struck a deal with prominent film studios, marking the end of a contentious strike period in Hollywood. Previously, a preliminary agreement was reached with the Association of Motion Picture and Television Producers (AMPTP) in late September 2023, focusing on minimum wage and enhanced healthcare benefits.

The second vote saw an approval rating of 78%, as confirmed by SAG-AFTRA. The new contract will be in effect until June 2026, as announced by union president Fran Drescher, who declared, "We're in a golden age for SAG-AFTRA, one that has never seen our union more influential."

Background

Prior to this milestone, the movie and streaming industries were disrupted by a significant strike involving both SAG-AFTRA and the Writers Guild of America (WGA), which commenced in May 2023. This marked the first time in over six decades that members of Hollywood's leading guilds—WGA and SAG-AFTRA—simultaneously engaged in a strike, pushing for improved wages and superior working conditions. Consequently, film and series production were halted for several months due to the standoff.

SAG-AFTRA's Telemundo Television Studios Contract

Seventeen months after the strike concluded, SAG-AFTRA entered negotiations with Telemundo Television Studios, resulting in a contract related to the usage of digital tools, such as artificial intelligence. This contract will be in effect between October 1, 2024, and September 30, 2028.

Key provisions of the contract include:

1. Digital replica guidelines: Strict guidelines governing the creation and use of digital replicas, requiring explicit consent and outlining the conditions for compensation when digital replicas are utilized.
2. Enhanced residuals: A noteworthy increase in both foreign and domestic residuals, amounting to 1.15% and 1.7% of the receipts, respectively. Residuals for original Peacock series produced under Telemudo have also been introduced.
3. Pension and health contribution percentage: The percentage required for pension and health benefits will increase by 1.5%.
4. Strengthened meal penalties: Meal penalties have been increased and the grace period for mealtime extensions has been prolonged.

SAG-AFTRA's Approval of the Agreement

In a unanimous vote, the SAG-AFTRA National Board endorsed the agreement with Telemundo Television Studios, heralding a triumph for Spanish-language performers.

The Wider Implications of Industry-Wide Agreements

The WGA's strike resulted in a groundbreaking pact with AMPTP in 2023, encompassing crucial provisions:

1. AI regulations: Studios are now prohibited from utilizing digitized images, voices, or performances of actors without their explicit consent. The compensation for digital doubles and synthesized voices must also be fair.
2. AI-generated scripts: Writers retain control over the creative process and have the final say on the use of AI-generated scripts. Writers must be compensated for any subsequent revisions and edits.
3. AI monitoring committee: An annual review of AI technologies in the industry will be conducted by a monitoring committee, which will propose amendments to the collective bargaining agreement as needed.

Conclusion

These landmark agreements between Hollywood unions and film studio giants, such as SAG-AFTRA, have established enhanced protection and compensation for performers, paving the way for a new standard in labor practices within the entertainment industry. This demonstration of collective bargaining power highlights the critical role of unions in safeguarding workers' rights and interests.

Enrichment Data

The latest developments and implications in the field of collective bargaining agreements between Hollywood unions, such as SAG-AFTRA, writers' guilds, and film studio giants essentially revolve around two main aspects: improved benefits for performers and AI regulations.

AI Regulations

1. Historic Agreement: The WGA and SAG-AFTRA strikes in 2023 led to a historic agreement with the Alliance of Motion Picture and Television Producers (AMPTP) that includes essential clauses related to AI regulations.
2. Consent and Compensation: Studios are now obligated to secure explicit consent from actors before using digitized images, voices, or performances. Furthermore, studios are required to fairly compensate actors when utilizing digital doubles or synthesized voices.
3. AI-Generated Scripts: Writers remain in control of the creative process, and AI-generated scripts cannot replace human screenwriters. If an AI-generated script is used, writers must be fairly compensated for their revisions and edits to ensure their active participation and recognition as the authors of the final work.
4. AI Monitoring Committee: To oversee the impact of AI technologies on the industry, an AI monitoring committee has been established to conduct an annual review of developments. This committee will recommend amendments to the collective bargaining agreement to stay current with forthcoming technological advancements.

Improved Benefits for Performers

1. Residual Payments: The emergence of updated viewing habits has necessitated the establishment of specific compensation for streaming projects: $9,031 for half-hour episodes, $16,415 for one-hour episodes, and $40,500 for streaming features with a budget exceeding $30 million.
2. Annual Residual Checks: SAG-AFTRA handles approximately 1.5 million residual checks annually, while the Directors Guild administers hundreds of thousands worth $300 million each year. Performers require an annual income of $27,000 to qualify for health insurance.
3. Casting and Consent Rules: The 2023 agreement also includes detailed consent rules for AI usage and better protections during casting. Studios must now obtain clear permission from performers and provide specific details before creating any digital copies.