WGA deal: What’s in it, how will it affect actors’ negotiations?

Written by Amy Ta and Danielle Chiriguayo, produced by Nihar Patel and Zeke Reed

People look at the Hollywood sign the day after the Writers Guild of America (WGA) announced it reached a preliminary labor agreement with major studios in Los Angeles, California, U.S., September 25, 2023. Photo by REUTERS/Mario Anzuoni.

Writers Guild of America (WGA) members can work in Hollywood again today. They lifted their nearly five-month strike after brokering a tentative agreement with the Alliance of Motion Picture and Television Producers (AMPTP). 

“What we wanted to do was make sure people were getting paychecks as soon as possible. We've been out for a very long time. So I think people are happy to be able to be back to work,” says Danielle Sanchez-Witzel, a member of the WGA negotiating committee, a comedy writer/producer, and co-creator of the Netflix show Survival of the Thickest. She’s back at work today. 

She says she was on the picket lines every day and gained a support system by talking with other guild members there. Reflecting on the past months, she’s learned how resilient the WGA is. “We all knew that this was difficult, and not only affected our own union, but other unions in Hollywood who stood solid with us. … We were strong right until the end. So I'm very proud of us.”

One of the gains that the WGA made in its new contract, she points out, is significantly higher foreign fixed residuals. That means when a show becomes popular overseas, its writers will be compensated. 

“That's something that's really important because for example, the show that I just made, was shot into 150-plus countries with a push of a button, you know what I mean? … A great part of streaming is that it's global,” Sanchez-Witzel says.  

Also new in the contract: 

- A performance metric bonus: If a show or a movie does really well on streaming, writers will share that profit too.

- More viewership transparency in streaming: data will be shared with the WGA

- A “premium” on mini (aka development) rooms: A minimum of three to six writers will be assigned per show, depending on how many episodes are ordered.  

- Protections against artificial intelligence: This includes a stipulation that studios will not use the technology without the writer’s permission. Certain proposals were punted into the future, including whether or not studios can use WGA writers’ scripts to train AI. 

SAG-AFTRA: Still on the picket lines

SAG-AFTRA–the actors union– is continuing its strike that began on July 14, and has not announced when its negotiating committee will return to the table with the AMPTP. 

Matt Belloni, founder partner of Puck News and a regular contributor to KCRW’s The Business, says the WGA’s deal will likely inform the actors’ negotiations, and they might use some of the writers’ items in their own contract, such as streaming transparency.

“The writers negotiated that if … 20% of the subscribers to a streaming service watch your movie or show, you get a bonus. I think that the actors are going to use that as a template for this going forward.”

He predicts that SAG-AFTRA’s strike will end by Thanksgiving. However, a chasm stands in the way: The union’s proposal for an 11% increase in wages. It’s a large jump, Belloni says, in comparison to the 5% bump writers secured.

Actors vs. video game industry

Meanwhile, SAG-AFTRA members overwhelmingly voted to authorize another strike, this one against video game companies. This would apply to unit members under the Interactive Media Agreement, which includes off-camera voiceover performers, on-camera performers (such those who do motion capture and stunts), singers, and background performers. Negotiators have been bargaining with video game companies — including Electronic Arts, Take-Two, and Warner Bros. Games — since October 2022. 

The vote does not mean members under this agreement will go on strike, but it does give the guild the option to call for one. 

“Finally, the guild just said, ‘You know what? We're gonna do a strike authorization vote,’ hoping that that will put a fire underneath these video game studios to do a deal. Interestingly, Disney is one of them, and Disney [is] still negotiating with the actors on the film and television deal [and] just got done with the writers,” Belloni explains. “I think that this is just yet another example of the labor movement right now being particularly strong in Hollywood, and they think they can get significant gains.”

AI is a major sticking point in video game negotiations, especially with voice actors who don’t want their likenesses used to train the machines. Belloni points out, however, that actors might have an easier time securing protections in this field. 

“Because it's the likeness and persona of the person, the legal framework behind this is a little bit more in favor of the actors. So I think the studios will be a little bit more forgiving, and concede a little bit more on this issue for both film and television and video games. I could be wrong. But it seems to me … the look and feel of your person is something that is so fundamental to people that they want to protect it.” 

Broadly, where does Hollywood go from here? 

Expect a “fallow period” for the industry, partly due to the shutdown and an overall downturn in content, Belloni says.

“The peak TV bubble has burst and the streamers and studios are not making as much as they once did, with Netflix excluded. There is a winter coming for content.”

He adds, “The question is [whether] the gains made by the strikes will exacerbate that or whether they won’t have much impact.”

Many KCRW staff are members of SAG-AFTRA, though we are under a separate contract from the agreement at issue between actors and studios.

Credits

Guests:

  • Danielle Sanchez-Witzel - WGA negotiating committee member, comedy writer/producer, and co-creator of the Netflix show Survival of the Thickest
  • Matt Belloni - founding partner of Puck News and regular contributor to KCRW’s The Business - @MattBelloni