Writers Guild of America’s Tentative Deal with Top Entertainment Companies

September 26, 2023

Hollywood’s labor disputes seem to be heading toward a resolution as the Writers Guild of America (WGA) recently reached a tentative agreement with major entertainment companies. This development marks a significant step forward for the industry, although several hurdles remain before Hollywood can return to business as usual.

The Agreement Overview

The Writers Guild successfully secured numerous concessions from studios, addressing key demands. These include increased royalty payments for streaming content and safeguards against artificial intelligence infringing on writers’ credits and compensation. Remarkably, this breakthrough occurred after a marathon 146-day strike, with the deal reached following five consecutive days of negotiations.

AI and the Final Sticking Point

The use of artificial intelligence was a pivotal issue that led writers to call for a strike. Studios and the WGA reached a compromise over the weekend, proposing amendments to the new contract to address concerns about AI’s interaction with old scripts owned by studios. Negotiations on this critical matter took several hours on the final night of talks.

Next Steps in the Process

If the contract is approved, the 11,000-plus guild members will have their say in ratifying the contract. The suspension of all picketing activities was announced following the deal, but members were cautioned against returning to work until the contract formalization.

Potential Resumption of Work

Writers may soon resume their work, provided that union leadership approves the deal. They will consider ending the strike during the ongoing rank-and-file vote. This decision could bring relief to late-night and daytime talk show writers, although most television shows and movies remain halted due to ongoing strikes by actors.

Impact on the Actors’ Strike

The agreement reached by the Writers Guild will not directly affect the strike led by SAG-AFTRA, the union representing over 150,000 actors. Actors have been striking separately since July 14, with demands that surpass those of the writers. One major sticking point has been the studios’ rejection of setting aside 2% of streaming revenue, a demand made by actors. Currently, there are no scheduled talks between the actors’ union and the studios.

Shared Concerns and Possible Blueprint

Although the writers and actors have distinct demands, the deal achieved by the Writers Guild may serve as a blueprint for addressing shared concerns. Both groups sought stringent safeguards regarding AI usage, with actors fearing its impact on their livelihoods and the creation of digital replicas of their likenesses without compensation or approval.

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