The Importance of the WGA & SAG-AFTRA Strikes to the Film Industry and Its Workers

Since May and July of this year respectively, the Writers Guild of America and the Screen Actors Guild and American Federation of Television and Radio Artists have gone on strike following a labor dispute regarding compensation, the use of artificial intelligence, and bargaining agreements

Following a vote on the authorization of a strike, the Writers Guild of America officially announced it would be going on strike on April 17th with 97.85% of its members voting in favor of the strike.

With the deadline for a new contract being passed on May 1, members of the WGA began negotiations with the Alliance of Motion Picture and Television Producers which represents many dominant corporations in the film industry such as Disney, Netflix, NBC Universal, and more.

During negotiations with AMPTV, conditions were proposed such as increased compensation, guaranteed number of on-the-week jobs due to the new standard of streaming, and new regulations on artificial intelligence.

According to the WGA, 49% of its members are paid the minimum rate listed in the current bargaining agreement with writer pay decreasing 14% over the last 5 years when accounting for inflation.

The union has additionally cited issues with many writers going weeks or months without occupation due to shorter exclusivity deals made popular by streaming services commonly releasing only 8-12 episodes annually as opposed to the former 20+ episode precedent set by broadcast television. As a result, many writers are not given full-time work status and thus lack healthcare insurance.

With the AMPTV only willing to compromise on select aspects of the proposals given by the union, members of the WGA officially went on strike in early May of this year.

The Screen Actors Guild – American Federation of Television and Radio Artists (SAG-AFTRA) followed suit soon after as its members collectively halted labor following the expiration of its contract with AMPTV.

SAG-AFTRA officially went on strike during mid-July marking the first time in over 60 years where both writers and actors were on strike in Hollywood.

The actor’s union brought concerns similar to the WGA’s when discussing a new contract with the AMPTV. Many performers cited concerns about a lack of pay raises, compensation issues with the current streaming models, and protections against artificial intelligence.

In an interview with CBS, SAG-AFTRA President Fran Drescher stated that "most of my members don't even meet the threshold to get health insurance, which is $26,000 a year, and in most jobs that would be considered a part-time job.”

In a document shared by SAG-AFTRA, the union is demanding an 11% raise for this fiscal year as well as an 8% raise for the next two years to account for inflation. AMPTV countered with raises around half of what the union requested which contributed immensely to the ongoing labor standstill.

The union cited the current revenue model of streaming services as a factor of inconsistent and insufficient salaries amongst actors. Prior to the streaming era, performers would earn revenue for each rerun of a film or show that they were a part of.

However, in the era of streaming services, this practice has ended as actors are now only paid a small amount to keep a film or show on said service, not for the number of times their work has been viewed by streaming service subscribers.

With the AMPTV’s unwillingness to meet the demands of both the WGA and SAG-AFTRA, production of many upcoming films will be halted which may leave many fans in confusion and dismay.

While this labor standstill may leave many fans upset, performers throughout Hollywood have been supportive of the strike while stating its importance toward securing improved conditions for the most vulnerable in the film industry.

When asked if she supported the ongoing strike, 33-year-old Barbie star Margot Robbie replied “Absolutely!, I very much am in support of all the unions, and I’m a part of SAG, so I would absolutely stand by them.”

Additionally, renowned actress Fran Drescher stated “We are being victimized by a very greedy entity. I am shocked by the way the people that we have been in business with are treating us.”

In previous strikes in the film industry, actors and writers were able to secure massive breakthroughs with increased pay, health insurance coverage, and additional royalties that went directly toward the creators and workers of the film.

During the 1960 WGA and SAG strike, the last time both union’s strikes coincided, performers were able to secure a $2.5 million dollar pension plan that included benefits such as increased health insurance coverage. This deal is evaluated to be worth around $25 million dollars in the present when accounting for inflation.

Additionally, according to the WGA, members of the union were able to secure a 1.2% license royalty, an independent pension fund and industry health insurance plan, and 4% residuals for both domestic and foreign television reruns.

The current joint strike of Hollywood’s performers and writers is a reflection upon the lack of improved compensation for the film industry’s most vulnerable laborers. Protestors on the picket lines have expressed their sympathy for the underpaid employees under the entities of the AMPTV which reflect a majority of the industry’s workers.

With the AMPTV’s expressed unwillingness to compromise with the demands brought by the two unions, this historic strike is likely to result in months of deadlock before an agreement is reached. However, the momentous and relentless action taken by members of the WGA and SAG-AFTRA is showing no stop and such action is likely to continue until mega film corporations are forced to cede in agreements with the unions.