Actors Union and Hollywood and TV Studios Reach Tentative Agreement

The actors union announced on Wednesday that Hollywood actors have reached a tentative agreement with major film and television studios to end a four-month strike. The strike had halted production industry-wide and posed serious concerns about the future of the entertainment business. Negotiations between the Alliance of Motion Picture and Television Producers, representing the studios, and the union had been ongoing throughout the year to reach this deal.

The actors union announced on Wednesday night that the SAG-AFTRA TV/Theatrical Committee has unanimously approved a tentative agreement with the AMPTP, thereby bringing an end to the 118 day strike. According to the union, the strike will officially end at midnight. The resolution has not yet been publicly acknowledged by the studios.

The terms of the deal, which require ratification by the union members to become effective, have not been revealed yet. However, Fran Drescher, the union president, shared some key points on Instagram last night.

Drescher expressed gratitude to the AMPTP for acknowledging and responding to their concerns.

This agreement paves the way for approximately 160,000 actors who are affiliated with SAG-AFTRA to resume work. They had previously gone on strike on July 14, joining forces with the writers guild in an unprecedented double strike against the studios. This marked the first instance in over 60 years where both writers and actors were on strike simultaneously.

Production has remained closed as the actors continue to strike and negotiate their contract, despite the resolution of the writers' strike in September. The rise of artificial intelligence, which poses a significant threat to the entertainment industry, has been the main cause of both disputes. This issue has been one of the last and most challenging challenges for the actors and studios to reach an agreement on. However, according to a reliable source, the studios have agreed to modify the wording regarding AI, seemingly resolving this outstanding matter, at least for now.

However, there may be challenges in ratifying the deal. A recent online petition, signed by over 5,000 members, called on the union to take a firm stance in negotiations and reject any agreement that does not meet the initial demands set during the strike.

Long road to a resolution

A deal did not come easily - or quickly.

The actors' contract negotiations, after a brief resumption on October 2, came to a halt again on October 11 before resuming later in the month.

As October came to a close, it seemed that the actors strike was reaching its concluding act. According to CNN, SAG-AFTRA and AMPTP had made significant headway during negotiations, reaching initial understandings on important aspects of a potential agreement.

Over the past weekend, the studios claimed to have presented the union with their ultimate and non-negotiable proposal. However, in a communication to its members, the union stated that there were still several crucial matters, including the utilization of AI, on which the two sides had yet to come to an agreement.

Los Angeles Mayor Karen Bass expressed her appreciation for the resolution of the strike on Wednesday. She was grateful that SAG-AFTRA and AMPTP had reached a fair agreement after a strike that lasted over 100 days, which had a significant impact on millions of people in Los Angeles and across the nation. Mayor Bass acknowledged that those actively participating in the strike had endured the greatest hardships during this time, leading to widespread consequences throughout the entire city.

Clues from the writers strike

George Clooney, Tyler Perry, and other A-list actors, who are Hollywood's most renowned stars, expressed their eagerness to resume filming. In an effort to resolve the actors strike, they reportedly proposed paying millions of dollars in additional union dues, according to a source familiar with the matter cited by CNN.

SAG-AFTRA's agreement comes shortly after the Writers Guild settlement, ending their 148-day strike. The Writers Guild deal exerted pressure on SAG-AFTRA to negotiate a similar agreement. SAG-AFTRA joined the strike two months later.

With an expiration date in May 2026, their contract offers pay raises, improved benefits, safeguards against studios' use of artificial intelligence, assurances for streaming earnings, extended employment terms, and additional advantages.

The WGA expressed their excitement at the SAG-AFTRA members' successful contract negotiation, which provides enhanced safeguards for performers and ensures they receive a larger portion of the significant value they generate. On Wednesday, the WGA made this statement.

Similar to the WGAs demands, SAG-AFTRA also emphasized their concerns about artificial intelligence and residuals payments from streaming platforms for the work they contribute. The ratified contract of the WGA contains assurances that prohibit AI from independently writing or altering literary materials, and it mandates the disclosure of AI-generated content to writers. Both actors and writers share the belief that AI represents a significant threat to their livelihoods.

A significant hurdle in the negotiations arose due to SAG-AFTRA's insistence on an 11% wage hike in the initial year of the proposed agreement, while the studios had only conceded to a 5% salary increase.

Following the resolution of the writers strike, numerous writers swiftly resumed their work. Late night's prominent hosts, including Jimmy Kimmel, Jimmy Fallon, Stephen Colbert, John Oliver, and Seth Meyers, promptly returned to broadcasting. However, Hollywood actors refrained from making appearances on these shows to promote their films amidst the actors strike.

The Hollywood strikes have had a significant economic toll, amounting to at least $5 billion nationwide, according to economists. Their repercussions have extended beyond just production, impacting local businesses, restaurants, makeup artists, and custodial staff.