In the 1990s and early 2000s, I had the opportunity to work as a labor and employment lawyer for various Hollywood studios. My role involved negotiating deals with different unions who contribute to the production of TV shows and movies, including SAG-AFTRA (actors), WGA (writers), Teamsters (drivers), IATSE (crew), and DGA (directors). It’s disheartening to witness the ongoing writers’ guild strike followed by an impending actors strike, knowing the impact it has on the livelihoods of thousands of people. As a result of both unions going on strike, production on many projects has come to a halt.
On Tuesday, there was a glimmer of hope as studio executives reached out to a federal mediator to facilitate talks about the actors’ contract. Variety reported that talent agency leaders also offered their assistance to SAG-AFTRA leaders in order to prevent a second work stoppage in Hollywood this summer. However, studio executives managed to infuriate the actors by leaking information about their involvement before officially notifying the union.
Amidst the fear within both unions that the studios are simply waiting for them to give in, it was reassuring to see some executives showing interest in the negotiations. The studios refuted claims made by an anonymous source who suggested that the studios wanted to prolong the strike until union members were financially devastated.
Over the past 15 years, the dynamics of the entertainment industry have changed significantly. The major conglomerates that dominate the industry have grown even larger through mergers and acquisitions, such as Disney acquiring Fox and Comcast swallowing Universal. Additionally, big tech companies like Apple, Netflix, and Amazon, who now produce TV shows and movies, are also present at the bargaining table.
In the past, the studios were forced to separate from movie theaters due to concerns about vertical monopolies. However, that is now ancient history. These conglomerates view the production of entertainment as a small aspect of their overall business. Apple is primarily a consumer-product giant, Amazon is a massive online retail platform, and Comcast is a multinational telecommunications firm. This has led to a significant power imbalance in negotiations, which is problematic for workers who worry that these giant corporations can simply wait them out until they give in.
If politicians had taken a stronger stance on market consolidation and vertical monopolies years ago, and implemented reasonable regulations on tech companies, both consumers and workers would be in a better position today. Unfortunately, writers, actors, and other workers now bear the brunt of the consequences resulting from the negligence of both political parties. These companies might be too big for successful strikes, just as some banks were deemed “too big to fail.”
Without being in the negotiation room or having access to the same information, it is challenging to determine which side needs a reality check. However, the studios took the unusual step of releasing their last offer to SAG-AFTRA, which initially seems generous and specifically addresses concerns about artificial intelligence. Having spent many years in those negotiations, I know that, after days of talks and proposals, both sides believe the other is acting irresponsibly.
The major issues, such as AI usage, staffing for writers, and streaming residuals, appear different depending on which side of the table you’re on. For the companies, cost reduction through workforce elimination, access to new technology, and pressure to maintain high stock prices are crucial. The lack of reliable revenue from new streaming businesses, many of which report losses, creates an urgency to keep costs, including labor, low. The studios claim that a radical faction within SAG-AFTRA has made progress impossible and express frustration over the actors’ refusal to prioritize their demands.
From the perspective of actors and writers, their needs are different. They desire a decent standard of living in a costly region like Southern California and seek opportunities for continued creative involvement. They also feel a sense of urgency as artificial intelligence evolves rapidly. When the previous contracts expired, the pandemic was still ongoing, which led the unions to negotiate with fewer demands. Now, they are eager to catch up with industry trends and advancements in AI.
Some might view Hollywood “talent” as spoiled and privileged, but the majority of union members are ordinary workers who do not earn mega-salaries. Their struggles are not so different from those faced by workers in other industries. The New York Times recently reported an increase in work stoppages in Southern California, with teachers, school employees, dock workers, hotel employees, and others all facing the challenges of living in an expensive region. The fight for wages that match the cost of living will be seen on picket lines throughout the area. Moreover, it’s not only actors and writers whose jobs are threatened by AI and the gig economy.
Nelson Lichtenstein, the director of the Center for the Study of Work, Labor, and Democracy at the University of California, Santa Barbara, highlights the commonalities between different workers in today’s landscape. From the retail clerk to the screenwriter, they are all facing uncertainties in their employment. Faced with giant corporations focused on increasing profit margins each quarter, writers and actors find themselves in a vulnerable position. This serves as a warning to the entire American workforce.
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