Genaro Molina/Los Angeles Times/Getty Images
WGA members hand off their signs at the end of their first day of strike outside Paramount Studios in Hollywood on May 2, 2023.
CNN –
Members of the Writers Guild of America union have ratified a new contract with Hollywood and television studios, the WGA said in a statement released Monday.
Of the 8,525 valid votes cast, 99% of WGA members voted to ratify the new contract, which will be effective from September 25, 2023 to May 1, 2026, the release said.
“Through solidarity and determination, we have ratified a treaty with meaningful benefits and protections for writers across all areas of our shared membership,” said WGA West President Meredith Stiehm. “Together we were able to achieve what many thought was impossible just six months ago.”
Lisa Takeuchi Cullen, president of the WGA East, said the Alliance of Film and Television Producers must now negotiate a fair contract with the actors’ union SAG-AFTRA, which has been on strike since July.
“Until the studios reach a deal that addresses artists’ needs, WGA members will stand on the picket lines and walk side by side with SAG-AFTRA in solidarity,” she said.
In a statement, the AMPTP said the new contract represents a “significant win” for Hollywood’s writers.
“AMPTP member companies congratulate the WGA on ratifying its new contract, which represents significant gains and protections for authors. “It is an important step forward for our industry that writers can get back to work,” the organization said.
Under the agreement, most writers’ minimum wage will increase by 5% immediately, another 4% in May 2024, and another 3.5% in May 2025. Health insurance contributions will be increased by half a percentage point to 12% of companies’ reportable profits. And writers working on the same script no longer have to split pension and health insurance contributions.
Some writers were concerned about the growth of streaming because they were missing out on residual amounts that traditional TV shows paid on reruns. The initial compensation and residual compensation for big-budget streaming projects will increase under the new deal.
The deal also includes assurances that AI cannot write or rewrite literary material and that AI-generated materials must be disclosed to authors.
Streaming services such as Netflix, Disney+ and Max have also committed to increasing transparency about how many hours certain programs are streamed.
The ratification of a new labor contract between the WGA and major Hollywood studios officially ends the chapter of one of the longest strikes in the union’s history. The writers’ strike began in May and ended last month – after 148 days – following a preliminary collective agreement between the union and the AMPTP.
The writers’ strike and the ongoing SAG-AFTRA actors’ strike have impacted the entertainment industry’s ability to do business in recent months. It was the first time since 1960 that both SAG-AFTRA and the WGA went on strike together.