LOS ANGELES, July 13 (Portal) – Hollywood Actors’ Union negotiators unanimously recommended a strike after talks with studios broke down, setting the stage for cast members to join the picket line and writers as early as Thursday numerous shows and films would disrupt.
The SAG-AFTRA union said its national board would vote on a strike order Thursday morning. If approved, Hollywood studios would face the double shutdown for the first time in 63 years and be forced to halt production across the United States.
Both SAG-AFTRA – Hollywood’s largest labor union with 160,000 members – and the Writers Guild of America (WGA) are demanding increases in base salaries and severance pay in the streaming TV era, and assurances that artificial intelligence (AI) will not replace their jobs becomes. .
Fran Drescher, former The Nanny star and SAG-AFTRA president, said the studios’ response to the actors’ concerns was “insulting and disrespectful.”
“The companies have refused to engage meaningfully on some issues, and on others we have completely blocked ourselves,” she said in a statement, after a deadline for the actors to agree to a new deal at midnight on Wednesday. “Until they negotiate in good faith, we cannot reach an agreement.”
The Alliance of Motion Picture and Television Producers (AMPTP), which is negotiating on behalf of Netflix Inc (NFLX.O), Walt Disney Co (DIS.N) and other companies, said it was “deeply disappointed that SAG-AFTRA has decided to do so.” to refrain from the negotiations.”
The group said it offered “historic salary and residual increases” and “a breakthrough AI proposal that protects actors’ digital likenesses.” Actors fear their digital images will be used without their permission or appropriate compensation.
“Rather than continue to negotiate, SAG-AFTRA has put us on a course that will exacerbate the financial hardship for thousands who depend on the industry for their livelihoods,” the AMPTP said.
ECONOMIC DAMAGE
The strike by some 11,500 writers has prompted endless reruns of talk shows on late-night television, halted most production for the fall television season and halted work on big-budget films.
[1/6]Members of the Striking Writers Guild of America (WGA) walk the picket line in New York City, U.S., July 13, 2023. Portal/Shannon Stapleton
A SAG-AFTRA strike would shut down the studios’ remaining production in the US and put pressure on media companies to find a solution.
Hollywood has not faced two strikes at once since the 1960s, when members of the WGA and the Screen Actors Guild both quit their jobs over the remainder of films sold to television networks.
Bob Iger, whose contract as Disney CEO was extended this week until the end of 2026, said in an interview with CNBC on Thursday that the writers’ and actors’ unions had unrealistic expectations.
“It worries me deeply,” Iger said, before citing the entertainment industry’s ongoing recovery from the disruptions of the COVID-19 pandemic. “This is the worst time on earth for this disruption to increase.”
The unions are fighting over basic salaries and final payments on streaming services.
“You have to make $26,000 a year to qualify for health insurance, and there are a lot of people who exceed that threshold with their balance payments,” actor Matt Damon said Wednesday at a promotional event for the film Oppenheimer. “Money is made and it has to be distributed in a way that takes into account people on the fringes.”
However, many streaming services are yet to turn a profit after companies poured billions of dollars into programs to lure customers.
Disney, Comcast Corp’s NBCUniversal (CMCSA.O), and Paramount Global (PARA.O) each lost hundreds of millions of dollars on streaming last quarter. At the same time, the rise of online video has led to a decline in TV advertising revenue as traditional TV audiences shrink.
The WGA walkout has impacted across California and beyond, hitting caterers, prop suppliers and others who depend on Hollywood productions for business. It is to be expected that the economic damage will spread even if actors strike.
Broadcasters have announced previously announced fall programs full of reality shows unaffected by the current labor tensions. Independent productions not covered by union contracts may also continue.
Reporting by Lisa Richwine; Adaptation by Alison Williams, Toby Chopra, Andrew Heavens and Mark Porter
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