Hollywood unions are finalizing bargaining dates as they prepare to negotiate with studios over critical issues such as artificial intelligence (AI) and health coverage. The Screen Actors Guild-American Federation of Television and Radio Artists (SAG-AFTRA) announced to its members that negotiations will commence with the Alliance of Motion Picture and Television Producers on February 9, 2024, lasting until March 6, 2024.
The Writers Guild of America (WGA) is scheduled to begin its discussions on March 16, 2024, just weeks before its contract expires on May 1, 2024. Negotiations for the Directors Guild of America (DGA) will follow on May 11, 2024, with contracts for both the DGA and SAG-AFTRA set to expire on June 30, 2024. If SAG-AFTRA and WGA negotiations do not yield a resolution, there will still be a chance to resume discussions in June before contract expirations.
These upcoming negotiations will be the first since the actors’ and writers’ strikes of 2023, which were driven by concerns regarding AI and residuals from streaming platforms. Traditionally, the DGA has set a precedent for negotiations, but this dynamic shifted significantly in the previous cycle. As the industry faces ongoing challenges, particularly in Los Angeles, negotiators are expected to prioritize measures that could create jobs for their members while being cautious not to disrupt a fragile recovery.
In their recent communication to members, SAG-AFTRA leaders emphasized the importance of an early negotiating window to allow ample discussion time and to safeguard the ongoing resurgence in domestic production activity. The slowdown in production has impacted industry health plans, prompting negotiators to consider potential adjustments to benefit structures.
The AMPTP has already begun addressing these concerns, recently releasing a report highlighting that guild members enjoy relatively generous health coverage. According to the report, members of the DGA, WGA, and SAG-AFTRA pay lower premiums, have reduced deductibles, and face lower out-of-pocket maximums compared to other large employer-based health plans.
Additionally, the AMPTP has proposed a five-year contract, as opposed to the typical three-year agreement, suggesting that studios are willing to invest in a longer-term labor peace. Unions are anticipated to renew their efforts to safeguard members against the risks posed by AI. During the previous negotiations, writers and actors sought protections against the use of their work for training AI systems. Although they secured several AI safeguards, they could not achieve a resolution regarding training.
Concerns about AI have intensified following Disney’s recent partnership with OpenAI, which allows the use of Disney characters in the AI tool Sora 2. As the negotiations approach, both the unions and the AMPTP have refrained from commenting on the specific bargaining dates. As these discussions unfold, the outcomes will significantly impact the future of the entertainment industry and its workforce.
