For the past couple of weeks, the Hollywood Studios (AMPTP) and the actors union (SAG-AFTRA) have been conducting meetings to try to resolve the actor’s strike, which began in July.
The two sides have been meeting almost every other day to negotiate a deal, but sadly, after today’s meeting, talks have now broken down. The main reason for the breakdown is that studios have offered a bonus residual system, which was recently given to the writers as part of their new deal and have offered the same deal to the actors union. However, the actors’ union want a percentage of all streaming revenue to be shared between its members, which the studios aren’t willing to do.
The studios, including Disney, have released details about the offer they’ve given to the actors’ union, which has been done to try to pressure the actors union from members, other people within the industry and from the public.
Here is the full statement from the studios:
Negotiations between the AMPTP and SAG-AFTRA have been suspended after SAG-AFTRA presented its most recent proposal on October 11. After meaningful conversations, it is clear that the gap between the AMPTP and SAG-AFTRA is too great, and conversations are no longer moving us in a productive direction.
SAG-AFTRA’s current offer included what it characterized as a viewership bonus that, by itself, would cost more than $800 million per year – which would create an untenable economic burden. SAG-AFTRA presented few, if any, moves on the numerous remaining open items.
Member company executives and AMPTP representatives met with SAG-AFTRA for five days over the past eight workdays. During that time period, AMPTP extended offers including:
- A first-of-its-kind success-based residual for High-Budget SVOD productions.
- The highest percentage increase in minimums in 35 years, which would generate an additional $717 million in wages and $177 million in contributions to the Pension and Health Plans during the contract term.
- A 58% increase in salaries for major role (guest star) performers wages on High Budget SVOD Programs.
- A 76% increase in High Budget SVOD foreign residuals for the four largest streaming services.
- Substantial increases in pension and health contribution caps, ranging from 22-33%, which will make it easier for performers to qualify for additional periods of health coverage and earn years of service toward a pension.
- Meeting nearly all of the Union’s demands on casting, including guardrails around self-tapes, options for virtual and in-person auditions, and accommodations to performers with disabilities.
- Compensation adjustments of 25% for singers who dance and dancers who sing on camera in the same session, whether in rehearsal or photography, representing a 30% increase over current wages.
- Wage increases for stunt coordinators of 10% in the first year and outsized increases in years two and three, and giving television stunt coordinators fixed residuals for the first time ever.
- Substantial improvements in relocation allowance – a 200% increase if the performer is on an overnight location for 6 months. The relocation allowance would now be payable for every season in which the performer is on an overnight location (versus a current limit of two to four seasons).
- Substantial increases in Schedule F money breaks of between 11% and 41%. The 41% increase applies to one-hour television programs, which covers the largest number of productions done under the Agreement.
- A 25% increase in span money breaks.
- Covering performance capture work under the Agreement, which the Union has sought for 20 years.
- On AI protections:
- Advance consent from the performer and background actor to create and use Digital Replicas;
- No Digital Replica of the performer can be used without the performer’s written consent and description of the intended use in the film;
- Prohibition of later use of that Replica, unless performer specifically consents to that new use and is paid for it; and,
- A “Digital Alteration” that would change the nature of an actor’s performance in a role is not permitted without informing the performer of the intended alteration and securing the performer’s consent.
On common issues, such as general wage increases, High-Budget SVOD residuals, and viewership bonuses, the AMPTP offered the same terms that were ratified by the DGA and WGA. Yet SAG-AFTRA rejected these.
We hope that SAG-AFTRA will reconsider and return to productive negotiations soon.
Following the release of this information from the studios, the Screen Actors Guild union has also issued a statement, where they condemn the release of the offer, saying that the studios are trying to break their member’s trust and are misrepresenting the facts about the deal.
Here’s the full statement from SAG-AFTRA:
Dear SAG-AFTRA Members,
It is with profound disappointment that we report the industry CEOs have walked away from the bargaining table after refusing to counter our latest offer. We have negotiated with them in good faith, despite the fact that last week they presented an offer that was, shockingly, worth less than they proposed before the strike began.
These companies refuse to protect performers from being replaced by AI, they refuse to increase your wages to keep up with inflation, and they refuse to share a tiny portion of the immense revenue YOUR work generates for them. We have made big, meaningful counters on our end, including completely transforming our revenue share proposal, which would cost the companies less than 57¢ per subscriber each year. They have rejected our proposals and refused to counter.
Instead they use bully tactics. Just tonight, they intentionally misrepresented to the press the cost of the above proposal – overstating it by 60%. They have done the same with A.I., claiming to protect performer consent, but continuing to demand “consent” on the first day of employment for use of a performer’s digital replica for an entire cinematic universe (or any franchise project).
The companies are using the same failed strategy they tried to inflict on the WGA – putting out misleading information in an attempt to fool our members into abandoning our solidarity and putting pressure on our negotiators. But, just like the writers, our members are smarter than that and will not be fooled.
We feel the pain these companies have inflicted on our members, our strike captains, IATSE, Teamsters and Basic Crafts union members, and everyone in this industry. We have sacrificed too much to capitulate to their stonewalling and greed. We stand united and ready to negotiate today, tomorrow, and every day.
Our resolve is unwavering. Join us on picket lines and at solidarity events around the country and let your voices be heard.
One day longer. One day stronger. As long as it takes.
Your TV/Theatrical Negotiating Committee.
What do you think of the deal offered by the studios? Let us know on social media!