End to the writers' strike in Hollywood? WGA and studios reach a tentative agreement

After 146 days of strike, the Writers Guild (WGA) managed to reach a tentative agreement with the major Hollywood studios (AMPTP) that will likely put an end to the strike that has been in effect since May 2.

Throughout this week, the union will discuss the proposal with union members for ratification, although picketing will cease. If the strike exceeds 154 days, it will be the longest strike in Hollywood history. Actors, however, continue with their work stoppage, as the studios have yet to even meet with their representatives.

The presence of industry titans was key for negotiation

Negotiations resumed on Wednesday, Sept. 20 and, for the first time, industry CEOs decided to attend negotiations. Bob Iger (Walt Disney Studios), Ted Sarandos (Netflix), Donna Langley (NBC Universal) and David Zaslav (Warner Bros. Discovery) went to Sherman Oaks, Calif., to talk with the WGA's chief negotiator, Ellen Stutzmanque and AMPTP President Carol Lombardini. In the conversation, the screenwriters raised their demands to end the historic strike. If the pre-agreement had not been reached, the writers' strike could have been extended until the end of the year, further affecting a chaotic 2023-2024 television and film season.

The presence of the heads of these big Hollywood companies, reported CNBC, helped produce important dialogue in the negotiations. For the first time since the strike began, both sides published a joint statement informing that they would resume talks the next day, Thursday, Sept. 21:

While it did not provide much specific information about the negotiations, releasing a joint statement for the first time since the strike began was seen as an important step towards ending the picketing. A person familiar with the negotiations told Deadline that "incredible progress" had been made.

Another source, who also chose to remain anonymous, also hinted that the strike could soon come to an end: "This is what happens when principals get serious. Things start moving."

TV shows attempt to return

The new round of negotiations occurred after several television shows announced their intention to return without the writers. The first to make a comeback attempt was Drew Barrymore, who was soon met with backlash from the WGA and, finally, had to delay her premiere.

She was not the only one who proposed this alternative. Shows like The View (ABC), Tamroll Hall (ABC), Live with Kelly and Ryan (ABC), The Jennifer Hudson Show (Syndication) and The Talk (CBS) also tried to return, although many of them decided, after the screenwriters' disapproval, delaying their season premiere.

Shows and movies continued to be paralyzed and important galas such as Emmy Awards had to be postponed until January 2024 due to the lack of not only writers, but also actors, who continue with their own strike that began a few months after the WGA's.

Screenwriters' main demands

The writers' strike was not something that happened overnight. Hollywood writers had been expressing discomfort for some time over several issues they felt were not being addressed by the big studios and that seriously threatened their jobs.

The most important issue was salaries, which the union values at $600 million. Another was new distribution windows. In the past, writers would receive royalties every time a show or movie was rebroadcast on television. In the age of streaming, audiences can view shows and films over and over on platforms like Netflix and Hulu, and screenwriters do not see this reflected in their pay.

Another important issue, and one that affects not only screenwriters but all citizens, was the use of AI. The writers asked for the creation of a law that allows them to use artificial intelligence to write scripts as long as it does not affect the compensation and credits they receive for their writing.

Finally, the union requested a review of its members' schedule flexibility. According to the WGA, nowadays, TV series are shorter and, in addition, a lot of time passes between one season and the next. Therefore, the union is requesting that, during downtime, the writers should be able to look for other work and not have to wait until production resumes on their current series.

And what about the actors' strike?

The Screen Actors Guild (SAG-AFTRA) continues its strike, and there is no indication that they will soon meet with the major Hollywood studios. They began their pickets on July 14 of this year and have halted the industry for a total of 73 days.

Their strike was much more relevant than that of the screenwriters, as it completely paralyzed the industry. Not only was there nothing be written, but actors have not been filming, giving promotional interviews or attending events such as Comic-Con, leaving the studios without any opportunities for marketing.

The requests made by the actors are similar to those that writers raised in May. Actors have demanded higher salaries, better working conditions and limiting the use of artificial intelligence to have guarantees that they can not be digitally replaced.

Hollywood's double strike in numbers

The four-month shutdown in Hollywood has seriously affected the nation's economy. It is estimated that the double strike that the screenwriters began in May and which the actors joined on July 14 is costing the nation a $150 million per week.

In total, according to data from Forbes, the strike in Hollywood could result in $4 billion in losses for the United States. Some cities and states have been more affected than others. In California, the strikes by actors and writers burned a $5-billion hole in the state's economy and have affected around 700,000 Californians. The most affected jobs are those carried out by catering companies, dry cleaners, truck drivers, car rental companies and other small businesses.

The double strike also caused August to see the highest number of hours lost at work in a single month in the last 23 years. Specifically, during that month alone, 4.1 million work days were lost. This is the highest figure accumulated since 2000, when several stoppages also caused significant economic consequences.

The days lost due to strikes are only increasing. If the 4.1 million working days are added to those registered in July, the figure grows to 6.4 million. In total, the number has hit 7.4 million days lost this year. This figure is exponentially more than the 636 days that were recorded in 2022.