WGA Says Studios Are Trying To Get Striking Writers To 'Cave'

In an update sent to members late Tuesday night, the Writers Guild of America accused the Association of Motion Picture and Television Producers of trying to get the guild to “cave” after a recent negotiations meeting.

The WGA criticized the AMPTP’s decision to go public with a summary of its proposals shortly after the meeting.

“This was the companies’ plan from the beginning — not to bargain, but to jam us. It is their only strategy — to bet that we will turn on each other,” the WGA said in the update.

It also said the proposal’s “limitations and loopholes and omissions failed to sufficiently protect writers from the existential threats that caused us to strike in the first place.”

AMPTP response

For its part, the AMPTP said in a press release that their offer “features first-of-their-kind offers for writers, including unprecedented terms in the areas of Generative Artificial Intelligence, data transparency and minimum staffing.”

After receiving an invitation from studio executives including Disney CEO Bob Iger, the WGA says its negotiators met with the AMPTP Tuesday night.

“We were met with a lecture about how good their single and only counteroffer was,” WGA negotiators said.

Highlights of the AMPTP’s counteroffer:

•  Wage increase: A compounded 13% increase over the three-year contract.

• Generative AI protections, including: “A writer will not be disadvantaged if any part of the script is based on GAI-produced material, so that the writer’s compensation, credit and separated rights will not be affected by the use of GAI-produced material.” 

• Increased data transparency: “For the first time, viewership data in the form of quarterly confidential reports is to be provided to the WGA that will include total SVOD view hours per title. This increased transparency will enable the WGA to develop proposals to restructure the current SVOD residual regime in the future.” 

The WGA said it would provide another update on Wednesday with “a more detailed description of the state of the negotiations.”

Background information on the strikes

Timeline: SAG-AFTRA strike

This is the first SAG strike since 1980. The 1960 strike, which took place while the WGA was also striking, was led by Ronald Reagan, then the president of SAG. Current events:

• May 17: Union leaders ask for and receive a strike authorization vote ahead of contract talks.
• June 7: SAG-AFTRA begins negotiations with the AMPTP; contract due to end June 30.
• June 30: Both sides agree to extend talks through July 12.
• July 12: Federal negotiator is brought in
• July 13: The national board of SAG-AFTRA authorizes its 160,000 members to go on strike.
• July 14: Picketing begins at 9 a.m. at major studios and streamer HQ’s across the city.

Timeline: WGA strike

It is the first WGA strike in 15 years. The last work stoppage began in November 2007 and lasted 100 days. Current events:

• April 18: 98% of WGA members vote to go on strike if the contract talks fail.
• May 1: WGA contract expires with no agreement between sides.
• May 2: WGA strike begins

The issue: Actors

Minimum earnings: SAG is asking for an 11% general wage increase to reflect inflation. The AMPTP is countering with 5%.

Share of revenue: Actors feel they haven’t received their fair share of revenue from hit streaming shows.

• Traditionally compensation has been linked to ratings. Streamers like Netflix, however, don’t release how many people watch their shows, so it’s difficult to know which ones are major hits. SAG-AFTRA proposed bringing in a third-party company to measure ratings and devise residuals. The AMPTP rejected this. 
• Executives at studios and streamers maintain they’re 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.
• While some streamers are thriving (Netflix recently reported $1.71 billion of quarterly operating income), The Walt Disney Co. has announced the firing of 7000 employees to save money, having lost close to $10 billion to date on its streaming platforms. Warner Bros. Discovery is making deep cuts because of its $50 billion in debt. 

Artificial intelligence: There is deep concern about how artificial intelligence will be used, with particular anxiety about the use of a performer’s image and likeness. The union wants to prevent studios from training AI programs on actors’ work without permission, and for actors to consent and be paid if AI is used to replicate them. The AMPTP offered what it called a groundbreaking proposal that it said “protects performers’ digital likenesses." The union rejected this.

Self-taped auditions: Since the pandemic, self-produced audition tapes have become the norm — meaning actors light and film themselves. It’s labor intensive, with no pay, and widens an already competitive pool of performers. The union says it understands self-taped auditions can be useful, but wants to put restrictions around them.

• Read SAG-AFTRA’s summary of negotiation points 
• And what the AMPTP has to say about the negotiations

The issues: Writers

Maintaining a liveable wage: The WGA says that companies’ business practices have “slashed our compensation and residuals and undermined our working conditions”, and that the current contract terms failed to anticipate the explosive growth of streaming.

• It 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. 
• Meanwhile, the AMPTP says 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”.

"Gig economy": The union says that shorter schedules and small writers room means writers have to cobble together jobs, similar to the gig economy. The AMPTP says screenwriting has almost nothing in common with standard "gig" 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.

Staffing and duration of employment: The union wants a minimum number of weeks on a project and a certain number of writers. The AMPTP 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.

Artificial Intelligence: Writers want to make sure that AI isn’t used to replace their creative output. Meanwhile, the AMPTP says "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."

• Read the full WGA statement
• Hollywood producers released a statement on May 4 that addressed specific points of the WGA's concerns. 
  

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
• How The WGA Strike Of 2007 Strike Brought Donald Trump To Power
• A History Of Strikes: How The WGA Has Played Catch-Up As Emerging Technologies Made Others Richer