SAG-AFTRA, the union representing actors and performers, has agreed to a last-minute call for federal mediation of its contract, but has made it clear that it will not extend its contract deadline beyond Wednesday at midnight. This leaves very little time for a mediator to prevent a strike, which could potentially begin as early as Thursday morning.
In a statement released on Tuesday afternoon, the union emphasized that “time is running out” and expressed the strained relations between the two sides. While the union remains committed to reaching a deal by the deadline, it expressed doubts about the employers’ intentions to bargain towards an agreement. The union accused the Alliance of Motion Picture and Television Producers (AMPTP) of abusing their trust and damaging the respect they have for them in the negotiation process.
The AMPTP, which includes major companies such as Disney, Warner Bros. Discovery, Netflix, and Apple, proposed calling in the Federal Mediation and Conciliation Service to help broker an agreement. High-level agents, including CAA’s Bryan Lourd and Endeavor CEO Ari Emanuel, have also been actively involved in trying to facilitate progress between the two sides.
A strike by SAG-AFTRA would have a significant impact on scripted TV and film production conducted by the AMPTP companies worldwide. SAG-AFTRA members who have volunteered to be strike captains were seen on picket lines on Tuesday, receiving training from their counterparts in the Writers Guild of America.
Many SAG-AFTRA members were also seen marching with the WGA at Netflix headquarters, demonstrating their solidarity. There is a growing consciousness among members about the possibility of a strike, with many expressing their motivation and willingness to take action. Some members believe that striking is necessary due to the challenges they face in the industry, including the high cost of living in cities like Los Angeles.
The SAG-AFTRA contract was initially set to expire on June 30 but was extended for 12 days to allow for further negotiations. While some agreements have been reached in certain areas, major differences remain, particularly regarding artificial intelligence and streaming residuals. SAG-AFTRA is also seeking significant wage hikes and increased funding for its pension and health plans.
In preparation for a potential strike, SAG-AFTRA leadership held a meeting for entertainment publicists, outlining the rules that would be enforced if a strike is called. Actors and performers would not only be prohibited from going to set but also from participating in interviews to promote their work.
It is worth noting that the Writers Guild of America has been on strike since May 2, further highlighting the growing tensions within the entertainment industry.
How are the key sticking points in the negotiations, such as compensation for streaming services and working conditions, impacting the relationship between Paramount and the union?
And Paramount, has not responded publicly to the union’s statement. However, sources within the industry suggest that the employers are also running out of patience with the union’s demands.
The key sticking points in the negotiations include compensation for streaming services, residual payments, and working conditions. The union argues that actors and performers should receive a fair share of the profits generated by streaming platforms, especially as the popularity of online streaming continues to soar. They are also pushing for improved working conditions, including mandatory rest periods and protections against harassment and discrimination on set.
The employers, on the other hand, are concerned about the rising costs of production and the potential impact of higher compensation demands on the industry as a whole. They argue that the current compensation structure adequately reflects the changing landscape of the entertainment industry and that any further increases would be unsustainable.
If a strike were to occur, it would have a significant impact on the entertainment industry, affecting the production of TV shows, movies, and other media projects. Previous strikes by SAG-AFTRA in 2000 and 2007 resulted in disruptions and delays in the industry, costing millions of dollars.
Both sides have indicated a willingness to engage in mediation, but the limited time available before the contract deadline raises concerns about the effectiveness of the process. If an agreement is not reached by Wednesday at midnight, the union has the authority to call for a strike, which could begin as early as Thursday morning.
The potential strike comes at a challenging time for the entertainment industry, which is still recovering from the impact of the COVID-19 pandemic. Productions have been delayed and revenues have plummeted, making the negotiating process even more complex.
As the deadline approaches, actors, performers, and industry professionals are anxiously waiting to see if a last-minute resolution can be reached. The outcome of the negotiations will not only determine the immediate future of the entertainment industry but also set a precedent for labor relations in the evolving digital landscape.
This decision by SAG-AFTRA to reject the contract extension and seek federal mediation signifies their dedication to protecting the rights and interests of their members. The impending strike seems inevitable, and it will be interesting to see how this situation unfolds in the coming days.