Hollywood actors poised to strike and join writers on picket lines
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[July 13, 2023]
By Lisa Richwine
LOS ANGELES (Reuters) -Negotiators for Hollywood's actors union
unanimously recommended a strike after talks with studios broke down,
setting the stage for performers to join writers on picket lines as
early as Thursday and disrupt scores of shows and movies.
The SAG-AFTRA union said its national board would vote on a strike order
on Thursday morning. If approved, Hollywood studios would face their
first dual work stoppage in 63 years and be forced to shut down
productions across the United States.
Both SAG-AFTRA - Hollywood's largest union with 160,000 members - and
the Writers Guild of America (WGA) are demanding increases in base pay
and residuals in the streaming TV era plus assurances that their work
will not be replaced by artificial intelligence (AI).
Fran Drescher, former star of "The Nanny" and the president of SAG-AFTRA,
said studios' responses to the actors' concerns had been "insulting and
disrespectful."
"The companies have refused to meaningfully engage on some topics and on
others completely stonewalled us," she said in a statement after a
deadline for actors to agree a new contract expired at midnight on
Wednesday.
"Until they do negotiate in good faith, we cannot begin to reach a
deal," she added.
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The Alliance of Motion Picture and Television Producers (AMPTP), which
negotiates on behalf of Netflix Inc, Walt Disney Co and other companies,
said it was "deeply disappointed that SAG-AFTRA has decided to walk away
from
negotiations."
The group said it had offered "historic pay and residual increases" and
"a groundbreaking AI proposal that protects actors’ digital likenesses."
Actors are worried that their digital images will be used without their
permission or proper compensation.
"Rather than continuing to negotiate, SAG-AFTRA has put us on a course
that will deepen the financial hardship for thousands who depend on the
industry for their livelihoods," the AMPTP said.
ECONOMIC DAMAGE
The strike by roughly 11,500 writers has sent late-night television talk
shows into endless reruns, disrupted most production for the fall TV
season and halted work on big-budget movies.
A walkout by SAG-AFTRA would shut down the studios' remaining U.S.-based
productions and put more pressure on media companies to find a
resolution.
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![](../images/071323PIX/ent_c.37.jpg)
A sign hangs as striking Writers Guild
of America (WGA) members walk the picket line outside Rockefeller
Plaza, as SAG-AFTRA union announced it had agreed to a 'last-minute
request' by the Alliance of Motion Picture and Television Producers
for federal mediation, but it refused to again extend its existing
labor contract past the 11:59 p.m. Wednesday negotiating deadline,
in New York City, U.S., July 12, 2023. REUTERS/Shannon Stapleton
![](http://archives.lincolndailynews.com/2015/May/02/images/ads/current/guzzardo_lda022609.png) Hollywood has not faced two strikes
at once since 1960, when members of the WGA and the Screen Actors
Guild both walked off the job in a fight over residuals from films
sold to TV networks.
Today, the unions are battling over base pay and residuals from
streaming services.
"You have to make $26,000 a year to qualify for your health
insurance and there are a lot of people who get across that
threshold through their residual payments," actor Matt Damon said at
a promotional event held for the film "Oppenheimer" on Wednesday.
"There’s money being made and it needs to be allocated in a way that
takes care of people who are on the margins," Damon added.
Many streaming services, however, have yet to turn a profit after
companies spent billions of dollars on programming to try and
attract customers.
Disney, Comcast Corp's NBCUniversal and Paramount Global each lost
hundreds of millions of dollars from streaming in the most recent
quarter. At the same time, the rise of online video has eroded
television ad revenue as traditional TV audiences shrink.
The WGA's work stoppage has rippled throughout California and
beyond, hitting caterers, prop suppliers and others who rely on
Hollywood production for business. Economic damage is expected to
spread if actors also strike.
Broadcast networks have already announced fall schedules heavy with
reality shows, which are not affected by the current labor tensions.
Independent productions not covered by union contracts also can
continue.
(Reporting by Lisa Richwine; Editing by Alison Williams, Toby Chopra
and Andrew Heavens)
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