US strike fears ease as writers’ guild reaches four-year deal with studios
The Writers Guild of America (WGA) and the Alliance of Motion Picture and Television Producers (AMPTP) have reached a new four-year labour deal, a key step in averting a repeat of the strike that shut Hollywood down in 2023.
The AMPTP, which represents the studios in labour negotiations, announced the agreement for a new minimum basic agreement (MBA) over the weekend with a short statement. The existing deal had been due to expire on May 1.
“The AMPTP has reached a tentative agreement with the WGA. We look forward to building on this progress as we continue working towards agreements that support long-term industry stability,” said the organisation, which represents the likes of Netflix, Disney, Warner Bros Discovery, Paramount and Fox.
The WGA later confirmed the deal, adding that it “protects our health plan and puts it on a sustainable path, with increased company contributions across many areas and long-needed increases to health contribution caps. The union also said the new pact “helps address free work challenges.”
The agreement is expected to be put to a ratification vote later this month, with information about specific deal terms set to be released this week. Ellen Stutzman, WGA West’s executive director, is the chief negotiator on behalf of writers, while AMPTP president Greg Hessinger leads for the studios.
This marks a positive development for the wider production sector in the US, which is still feeling the effect of a production downturn that started in 2022 and was exacerbated by the crippling 2023 strikes.
Three years ago, both the WGA and actors’ union SAG-AFTRA went on strike as tensions between industry workers and the AMPTP boiled over amid disagreements over pay, AI and the size of writers’ rooms.
The double strike effectively shut down American production from May until November 2023 and had major ripple effects on the global production sector. Both the WGA and SAG-AFTRA claimed victory when they respectively struck new deals with the AMPTP in 2023. However, some pundits believe both unions fell into the trap of striking at a time when US studios were already looking for ways to cut costs and make fewer shows as the Peak TV bubble began to burst.
A repeat of 2023’s strike is an almost unthinkable outcome for the American film and TV industry. The Directors Guild of America (DGA) and SAG-AFTRA, whose respective deals with the AMPTP are both up on June 30, must still reach new agreements. But WGA’s signing of a new MBA is a positive sign.
Given the broader pressures facing the industry, the belief is that all sides are highly motivated to avoid another strike. However, amid ongoing concerns around AI and mega mergers, there had been a few whispers that negotiations with the studios could be tense.
In addition to the fact it was signed with time to spare, the WGA’s deal is notable because of its four-year term – an increase on the usual three years. If the SAG-AFTRA and DGA were also to sign four-year agreements, the next round of industry negotiations would not come until 2030, giving more labour certainty at a time when the sector continues to be challenged.…Read more by