California’s economy negatively impacted by Hollywood strikes

Hollywood screenwriters and studio executives in Los Angeles finally came together for a meeting after a three-month strike by the Writer’s Guild of America (WGA). The strike, which began in May and saw the participation of over 11,000 film and television writers, was later joined by approximately 65,000 actors from the Screen Actors Guild–American Federation of Television and Radio Artists (SAG-AFTRA). This joint strike marked the first time since 1960 that both guilds have walked out simultaneously, resulting in a significant economic impact on California’s film and television production industry.

California, known for its thriving entertainment industry, generates over 700,000 jobs and nearly $70 billion in wages from film and television production. The strike has affected various industries, including grocery stores and catering companies like Alex Uceda’s, which caters to Hollywood production crews. Uceda’s business has seen a drastic decline, losing approximately 70% of its revenue since the strike began, leading to the layoff of almost half of his employees.

To support those affected by the strike, prominent stars including Oprah, Julia Roberts, Meryl Streep, and Dwayne “the Rock” Johnson have generously donated $1 million or more to SAG-AFTRA’s financial assistance program.

Mayor Konstantine Anthony of Burbank, who represents the people working and living in the city, emphasized the importance of resolving the strike’s issues to support the local economy. He highlighted that the strike not only impacts studios but also has a cascading effect on secondary industries and jobs.

Negotiations are underway separately between the WGA, SAG-AFTRA, and the Alliance of Motion Picture and Television Producers, which represents major Hollywood studios. Residuals from streaming services and the use of artificial intelligence are among the crucial issues being disputed.

The recent meeting between the parties involved has brought a glimmer of hope for progress in negotiations. Chad Coe, a SAG-AFTRA member, expressed optimism about the meeting, noting that it breaks the prolonged silence surrounding the strike.

The negotiation process involves studios like Paramount Pictures, which is part of Paramount Global, and CBS News. While some CBS News staff are members of SAG-AFTRA or the Writers Guild, their contracts are not affected by the strikes.

Jonathan Vigliotti, a CBS News correspondent based in Los Angeles, provided this report. He has previously worked as a foreign correspondent for the network’s London bureau.

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