After a 118-day strike, SAG-AFTRA, the prominent performers' union, has officially reached a tentative three-year contract agreement with major studios.
The SAG-AFTRA TV/Theatrical Committee unanimously approved the deal on Wednesday, signaling the imminent end of the 2023 actors' strike. The strike is set to conclude at 12:01 a.m. Thursday, pending approval from the union's national board on Friday, according to The Hollywood Reporter.
"In a unanimous vote this afternoon, the SAG-AFTRA TV/Theatrical Committee approved a tentative agreement... bringing an end to the 118 day strike," according to AFP.
Details of the agreement have begun to emerge, with the pact valued at over $1 billion. Notable provisions include pay increases exceeding those received by other unions this year, a ground-breaking "streaming participation bonus," and regulations governing the use of artificial intelligence.
The tentative deal also encompasses higher caps on health and pension funds, enhanced compensation for background performers, and crucial protections for diverse communities. Should the deal be ratified, it could swiftly go into effect; otherwise, members may return negotiators to the table with the Alliance of Motion Picture and Television Producers (AMPTP).
In a statement, the AMPTP hailed the tentative agreement as a transformative milestone, offering SAG-AFTRA the most substantial contract gains in its history. This includes the largest minimum wage increase in four decades, a novel residual structure for streaming programs, and extensive safeguards for the use of AI. The AMPTP looks forward to the industry's resumption of storytelling.
Negotiations resumed on October 2 after SAG-AFTRA initiated the work stoppage in July. Industry leaders, including Netflix co-CEO Ted Sarandos and Disney CEO Bob Iger, attended talks at the union's national headquarters in Los Angeles. However, tensions escalated when the studios walked out on October 11 over a proposed fee for every streaming subscriber on major platforms.
The sides reconvened on October 24, with the studios offering a more generous package for actors' wage floors and a modified version of a success-based streaming bonus. Progress was slow, especially regarding regulations on artificial intelligence. The union viewed this technology as a critical issue and sought to establish safeguards against potential future problems.
The strike, coinciding with an ongoing writers' strike, provided SAG-AFTRA with significant leverage early in negotiations. Many remaining unionized U.S. productions halted, including high-profile films like Deadpool 3 and Venom 3. The strike's economic impact on California alone has been estimated at over $6 billion.
As the strike exceeded the 100-day mark, pressure mounted. A-list actors engaged in discussions with both the union and studios to accelerate progress. Additionally, thousands of actors released a letter on October 26, urging negotiators not to back down.
The duration of the strike in 2023 sets high expectations for the deal reached with studios. In the upcoming ratification vote, members will determine the acceptability of the agreement. The date for this vote has yet to be announced.
