Double strike in Hollywood puts California trade on the ropes

At his dry cleaners located between the studios of Warner Bros and Disney In Los Angeles, Tom Malian is desperate: the double strike of actors and screenwriters that paralyzes Hollywood has left his clotheslines, and his register, empty for weeks.

“If there is no one in the offices, no clothes fit here, it’s that simple”Malian says.

The entrepreneur says that 70% of his income comes from the employees of these studies in the city of tinsel, so the paralysis of the industry is a bump.

“Accounts payable are the same, as are expenses”says Malian, 56. “It makes me sweat.”

In an attempt to compensate, Malian reduced the work hours of his eight employees from 12 to 9 hours per day.

But the man anticipates that it will not be enough to balance the books. “If this goes on for several months, I’ll have to figure out how to cover the rent and expenses.”.

Screenwriters and actors left the negotiating tables with the studios and set up pickets in front of the studios in protest of contractual improvements ranging from salary increases to the definition of crucial issues for the future of the profession such as the use of artificial intelligence.

First it was the Writers Guild of Hollywood (WGA) who called a strike 100 days ago. Almost three months later it was followed by the Screen Actors Guild (SAG-AFTRA), which brings together 160,000 artists from stars to extras.

The paralysis of the industry, the economic heart of California, has put providers like Malian against the wall.

“Everyone is suffering”says the man looking towards the studios that look like ghost towns.

“No salary”

The mecca of American cinema has not seen a double strike since 1960.

Just when the industry seemed to be heading after the stagnation caused by the pandemic, contract discussions reignited the climate of uncertainty in Hollywood.

In addition to filming, the promotion of films, red carpets, premieres and even the Emmy Awards gala that was to take place in September were suspended.

From restaurants to flower shops to clothing stores, countless businesses rely on Hollywood in California, where film and television production pay $70 billion in salaries annually, according to numbers from the state California Film Commission.

There are no estimates of how much this strike is costing the state, but specialists recall that the Californian economy lost US$2.1 billion during the last strike of screenwriters that lasted 100 days between 2007 and 2008.

Disagreements between scriptwriters and studios, as well as between actors and studios, could drive the double strike until the end of the year, a scenario that shakes local businesses.

“Of my four cars, only one is operating”said Boris Sipen, who runs a private transportation service. “I lost 75% of my income.”

“The drivers are at home and without salary”added Sipen for whom the Emmys represent a large percentage of his annual turnover.

“It’s only going to get worse”

The concern is such that it reached the political sphere.

In late July, California Governor Gavin Newsom offered to mediate the contract discussion.

Los Angeles Mayor Karen Bass also made herself available, stressing in a statement Friday that the strike “It caused a ripple effect throughout our economy, as well as the state and the country.”

“The shock spread to all corners of Los Angeles (…) It is crucial that this is resolved immediately.”

Roxanne Schreiber, who just opened a hair salon near Warner Bros., agrees.

“This is only going to get worse”said the 39-year-old stylist whose clients postpone their appointments or dispense with coloring and styling, sticking, at best, to the cheapest haircuts.

As he decides what to do with his car rental due in October, he blames the studios for the dramatic stoppage.

“We all know that studios are profiting from the model of streaming”Schreiber opined. “And they’re not sharing it.”

Source: AFP