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Hollywood writers strike to end on Wednesday as WGA, AMPTP finalize labor contract

Sep 27, 2023 - cnbc.com
Hollywood writers and studios have agreed on a tentative contract, ending a nearly 150-day labor strike. The Writers Guild of America (WGA) and the Alliance of Motion Picture and Television Producers have agreed on a deal that will last until May 2026, including a 5% minimum pay increase upon ratification, and further increases in 2024 and 2025. The deal also includes protections against the use of AI in writing, a new residual based on viewership for streaming, and increased contributions to health and pensions for writers.

The agreement is now awaiting approval from the WGA West Board and the WGA East Council. Once approved, the AMPTP will begin negotiations with the Screen Actors Guild-American Federation of Television and Radio Artists (SAG-AFTRA), who have been on strike since mid-July. The WGA contract could serve as a template for SAG-AFTRA's own deal, with actors seeking similar improvements in wages, working conditions, health and pension benefits, and transparency from streaming services.

Key takeaways:

  • Hollywood writers and studios have finalized a tentative contract that will end a nearly 150-day labor strike. The deal includes a minimum pay increase and significant protections against the use of artificial intelligence.
  • The contract also includes a new residual based on viewership for streaming platforms. High budget subscription video on demand series and films that are viewed by 20% or more of the service's domestic subscribers in the first 90 days of release get a bonus.
  • The Writers Guild of America members will have until Oct. 9 to cast their votes on the contract.
  • Once negotiations are completed with writers, the Alliance of Motion Picture and Television Producers will need to pivot to negotiations with the Screen Actors Guild-American Federation of Television and Radio Artists. The actors' union is seeking contract updates similar to those requested by the writers.
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