Contract Deadline Nears: Actors Poised to Unite with Writers on Picket Lines

As the deadline approaches and no progress is made on a contract agreement, the possibility of a strike by Hollywood actors becomes more likely. This would join the writers who went on strike over two months ago.

In a last-minute move on Tuesday, the SAG-AFTRA union agreed to a request by the Alliance of Motion Picture and Television Producers for federal mediation. However, they refused to further extend their existing labor contract beyond the negotiating deadline of 11:59 p.m. on Wednesday, which means a strike could potentially be called.

The union stated, “We will not allow the expiration of our agreement to distract us from negotiating in good faith for a fair and just deal. While we are committed to the negotiation process and will explore every possible opportunity to reach an agreement, we have doubts about the employers’ intentions to bargain in good faith.”

The union also criticized a report from trade publication Variety, which suggested that Hollywood leaders like Disney CEO Bob Iger, Netflix’s Ted Sarandos, and Warner Bros./Discovery’s David Zaslav were behind the idea of federal mediation. The union claims that the story was published before their negotiators were even informed about the request for mediation. They stated, “We will not be manipulated by this cynical effort to engineer an extension when the companies have had more than enough time to make a fair deal.”

The SAG-AFTRA contract was originally set to expire on June 30, but an extension was agreed upon to allow for ongoing discussions. The union represents approximately 160,000 performers.

Both Variety and Deadline reported that the heads of Hollywood’s major talent agencies – Ari Emanuel of WME, Bryan Lourd of CAA, and Jeremy Zimmer of UTA – reached out to the SAG-AFTRA leadership to offer their assistance in finding a resolution and avoiding a strike. While SAG-AFTRA officials were open to Emanuel’s offer, the specific form of assistance remains unclear.

Due to a mutually agreed-upon media blackout, the contract negotiations have been conducted with no public updates from SAG-AFTRA or AMPTP.

The actors’ union shares many concerns with the Writers Guild of America, which called a strike on May 2. These concerns include revised residual formulas for streaming content and safeguards against the use of artificial intelligence in film and TV production.

The actors union has not gone on strike since 1980, while the WGA last went on strike for 100 days in 2007. If SAG-AFTRA decides to strike, it would be a rare double-barreled labor action, effectively halting the remaining production that continued after the writers’ strike began.

Negotiations between SAG-AFTRA and AMPTP started on June 7. Meanwhile, AMPTP has already reached a three-year contract deal with the Directors Guild of America, which was ratified by DGA members on June 24.

The DGA-AMPTP deal includes a 12.5% salary increase over three years for directors and a significant increase in residuals for streaming content. This includes a 76% increase in foreign residuals for major platforms. It also confirms that artificial intelligence cannot replace the responsibilities of DGA members. The deal was reached in less than a month, ahead of the June 30 expiration of the DGA’s previous contract.

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