Hollywood Actors Union Approves New 3-Year Contract

Facts

• The longest strike against Hollywood studios came to an end on Tuesday night when members of the SAG-AFTRA actors union voted to accept the conditions of a new three-year contract.¹
• According to SAG-AFTRA, 78% of voters approved the agreement with Walt Disney Co., Netflix Inc., and other Alliance of Motion Picture and Television Producers (AMPTP) members. Only 38% of eligible members cast a ballot; SAG-AFTRA represents approximately 160K actors and other media professionals.²
• Had the agreement been rejected, it would have meant going back to the negotiating table and, if leaders had demanded it, the actors might have gone back on strike.³
• The agreement stipulates the first-ever safeguards against artificial intelligence use in performances — including requirements for consent and compensation to protect performers from replacement with AI. It also increases minimum rates by 7% in the first year.⁴
• In a statement, SAG-AFTRA President Fran Drescher stated: 'I’m proud of our SAG-AFTRA membership...They struck for 118 days to grant the TV/Theatrical Negotiating Committee the necessary leverage to secure over $1 billion in gains, along with the union’s first-ever protections around AI technology.'⁵
• The deal's approval signals the end of a difficult time for Hollywood, during which unions sought protections for what they considered to be existential threats to their members' futures — effectively shutting down the entertainment industry and creating significant financial challenges for tens of thousands of workers.⁶

Sources: ¹Yahoo finance, ²Us news & world report, ³Associated Press, ⁴Abc news, ⁵NBC and ⁶Guardian.

Narratives

• Narrative A, as provided by Us news & world report. The union announced victory in one of the most fierce labor disputes in Hollywood history, with the majority of voting SAG-AFTRA members backing the agreement. Along with the first-ever restrictions on the use of artificial intelligence (AI) in filmmaking, the actors' union received the wage increases and streaming incentives they demanded. Negotiations for new contracts by other Hollywood unions, beginning next year, will benefit from the actor's hard-fought wins.
• Narrative B, as provided by Barrons. Tuesday's vote by union members to ratify the new agreement was applauded by the Hollywood Studios. The 118-day strike by the actors is officially over with the signing of the new contract. Everyone wanted to put a stop to this nasty and ill-conceived dispute — especially the entertainment industry. With this agreement, Holywood can now finally resume work with full force.

Predictions