Latest on WGA Strike: As LA Production Slows By Half, Contract Talks Likely To Slide To July

It’s Day 25 of the Writers Guild of America strike.

The strike's impact on production continues to expand. FilmLA, which handles permits for local productions shot outside studio lots, said the number of films and TV series that had permits last week was less than half what it was a year ago.

And this may only be the beginning of what now looks like a very long strike.

There are no talks currently scheduled, and several WGA members have said that they are not optimistic. One screenwriter, who spoke on condition of anonymity because he is not authorized to discuss internal guild matters, said, “At first I would have said [the strike lasts to] July. Now I think it could be a lot longer.”

It’s possible, of course, that the WGA and Alliance of Motion Picture and Television Producers, the bargaining entity for film and TV studios and streamers, could reach a settlement sooner, but the AMPTP has other Hollywood deals to make first.

• Bargaining with the Directors Guild of America began on May 10
  
• Bargaining with the Screen Actors Guild will begin on June 10.
  
• Both the DGA and the SAG contracts expire on June 30.

The AMPTP will likely wait until those talks are over, according to someone close to the negotiations who asked not to be identified. Therefore the earliest bargaining could resume with the WGA would be July 1.

What’s more, SAG has just asked for a strike authorization vote, which is likely to pass. While the DGA has never really been on strike, SAG has (the last time in 1980, and its contract demands will be very much aligned with the WGA’s. So that could mean actors will also go on strike as early as July 1.

Background: What AMPTP has said

Hollywood producers released a statement on May 4 that addressed specific points of the WGA's concerns. Among the issues addressed by the Alliance of Motion Picture and Television Producers were:

• "Gig economy" for writers: It says screenwriting has almost nothing in common with standard “gigs" jobs. Writers often have a guarantee of specific weeks or episodes, and writing jobs come with benefits such as employer-paid health care and pension plan contributions.
  
• Mandatory staffing and duration of employment: The AMPT sees this essentially as a hiring quota that's "incompatible with the creative nature of our industry", and says it's a one-size-fits-all solution to shows that are each unique.
  
• Overall Numbers: The AMTP disputes the WGA's claim that it's only offering $41 million a year in minimum wage increases. It says it's nearer $97 million per year, which doesn't take into account other wage and residual increases it's offered.
  
• Wage Increases: It's offering the highest first-year general wage increase in more than 25 years, while also offering to create "an entirely new category of rates that will establish a new and higher floor for mid-level writers’ compensation".

• Streaming Residuals: A 46% increase in residuals took effect in 2020, and many writers have yet to see these in their paychecks. For a one-hour episode of a Netflix or Amazon Prime series, a writer receives $72,000 in residuals over three years, growing to $114,000 over seven years.
  
• Artificial Intelligence: "AI raises hard, important creative and legal questions for everyone. For example, writers want to be able to use this technology as part of their creative process, without changing how credits are determined, which is complicated given AI material can't be copyrighted. So it's something that requires a lot more discussion, which we've committed to doing."

Background: What the WGA has said

In a statement released the night before the strike, the WGA said:

• Read the full WGA statement

What Else You Should Know

• It is the first WGA strike in 15 years; the last work stoppage began in November 2007 and lasted 100 days.
  

Why It Matters

The WGA says that most of its nearly 12,000 members are making less than they once did, and that after factoring for inflation, average WGA pay has actually dropped 14% over the last five years.

The union says about half of WGA members are earning scale — the bare minimum wages stipulated by the contract with the AMPTP. Ten years ago, it was only a third.

Executives at studios and streamers maintain that they are still recovering from pandemic losses and have spent billions of dollars creating and buying content for new streaming platforms, some of which are far from profitable.

For Hollywood executives, the stakes are high: if the AMPTP deal for writers increases pay and residual payments, their profit margins could shrink. Furthermore, other Hollywood unions would likely use any WGA gains as the template for their demands; contracts for the Screen Actors Guild and the Directors Guild of America both expire in the coming weeks.

How We're Reporting On This

John Horn, who covers arts and entertainment, has been following negotiations closely. Josie Huang talked to picketers and local businesses affected by the strike. In addition, our AirTalk team has featured the strike in on-air discussions on LAist 89.3 and LAist coverage.

Our podcasts HTLA and Retake have also talked to writers and others affected by the strike.

This is a developing story. We fact check everything and rely only on information from credible sources (think fire, police, government officials and reporters on the ground). Sometimes, however, we make mistakes and/or initial reports turn out to be wrong. In all cases, we strive to bring you the most accurate information in real time and will update this story as new information becomes available.

What Questions We're Asking

• What are the main sticking points in the negotiations?
• How do the contracts of other Hollywood unions — some of which have no-strike clauses — affect this strike?
• What's next for your favorite shows.

Learn more

• TV And Movie Writers Strike Over 'Gig Economy' Conditions. What’s At Stake In The WGA Walkout
• From Gas Stations to Restaurants: How The WGA Strike Will Hit The LA Economy
• This Hollywood Writers Strike Could Have Massive Economic Impact. An Economist Explains What We Can Learn From 2007

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