Hollywood unions are preparing to engage in negotiations with studios regarding critical issues such as artificial intelligence and health coverage. The SAG-AFTRA union informed its members that bargaining will commence with the Alliance of Motion Picture and Television Producers on February 9, 2024, continuing until March 6, 2024. Following this, the Writers Guild of America (WGA) is set to begin discussions on March 16, 2024, with their contract expiring on May 1, 2024. The Directors Guild of America (DGA) will join the talks shortly after, starting on May 11, 2024, leading up to the expiration of their contracts on June 30, 2024.
These negotiations will mark the first significant discussions since the writers and actors strikes of 2023. Issues such as the implications of artificial intelligence and the distribution of residuals from streaming services are expected to resurface during talks. Traditionally, the DGA is the first of the three unions to negotiate, setting a precedent for subsequent discussions. However, this pattern faced challenges in the previous cycle, leaving uncertainty about its future trajectory.
The entertainment industry has faced considerable difficulties over the past three years, particularly in Los Angeles. Union leaders, in a message to members, emphasized the importance of these negotiations to foster job growth while carefully considering the industry’s recovery. They expressed a desire for timely discussions to avoid compromising the “nascent but much-needed resurgence in domestic production activity.”
The downturn in production has also strained industry health plans, prompting negotiators to consider altering benefit structures. Recently, the AMPTP released a report indicating that guild members enjoy relatively generous health coverage. Compared to other large employer-based plans, members of the DGA, WGA, and SAG-AFTRA benefit from lower premiums, reduced deductibles, and lower out-of-pocket maximums.
Additionally, the AMPTP has proposed a five-year contract instead of the standard three-year agreement, suggesting a willingness to invest in labor peace over an extended period. Unions are also expected to advocate for stronger protections against the use of members’ work for training artificial intelligence systems. In 2023, while they secured some protective measures regarding AI, they were unable to prevent the training of AI on their content. Recent agreements, such as Disney’s partnership with OpenAI allowing Disney characters on the Sora 2 platform, have intensified concerns regarding this issue.
Both the unions and the AMPTP have refrained from commenting on the confirmed negotiation dates. As bargaining approaches, the stakes are high for all parties involved, and the outcomes will likely shape the future of labor relations in the Hollywood entertainment sector.
