SAG-AFTRA reviewing Hollywood studios' 'last, best, final offer': Key insights
The Screen Actors Guild-American Federation of Television and Radio Artists (SAG-AFTRA) has announced it is reviewing the "last, best, and final offer" from the Alliance of Motion Picture and Television Producers (AMPTP). Reportedly, it was presented during a virtual meeting on Saturday (local time) which lasted an hour. The Hollywood studios said the offer was "comprehensive and fair," with robust protections for artificial intelligence (AI), among other proposals. Meanwhile, the Hollywood actors' strike completed 114 days on Saturday.
Why does this story matter?
Hollywood has been grappling with a prolonged period of unrest, primarily driven by strikes by writers and actors. The writers' strike—which commenced in May—was only recently resolved on September 27. However, the actors' strike—which began in July—is still ongoing, leaving thousands of individuals out of work. This disruption has had a significant economic impact, resulting in an estimated loss of $6.5B and over 45,000 job losses within California's entertainment sector.
Highest wage increase; compensation bonuses: What's the new proposal
Per Deadline, the proposal from the studios to the actors includes the most substantial wage increase seen in 40 years. It also includes a notable 100% boost in performance compensation bonuses for high-budget streaming series and films. Furthermore, comprehensive AI protections are featured in the package. Netflix's Co-CEO, Ted Sarandos, reportedly told SAG-AFTRA leaders that the studios' latest offer was a significant move, adding, "We didn't just come toward you, we came all the way to you."
Take a look at the message by SAG-AFTRA
About demands of SAG-AFTRA union
The SAG-AFTRA has put forth several demands. These include increased minimum pay rates and enhanced streaming residuals, both of which have failed to keep up with inflation. The union is also seeking improvements in working conditions, apart from royalty payments, which have become less reliable due to changes in the streaming landscape. Furthermore, SAG-AFTRA members are advocating fair compensation for any utilization of their work in AI training processes.
SAG-AFTRA responds with 'Cautious Optimism' to new contract talks
The latest meeting included high-ranking representatives from the AMPTP, such as executives of Netflix, Disney, NBCUniversal, Paramount, Amazon, Sony, and Warner Bros. Discovery. At present, the SAG-AFTRA leadership, including guild president Fran Drescher and chief negotiator Duncan Crabtree-Ireland, is meticulously examining the AMPTP's response and strategizing the next steps. However, assessing how close both sides are to finalizing a three-year contract is uncertain, as they have adopted a stance of "cautious optimism," indicating the negotiations are in a delicate phase.
