Screenwriters and Hollywood studios reach initial agreement to end strike

The Writers Guild of America (WGA) and the studios hollywood This Sunday they reached an agreement in principle that could put an end to a month-long strike in the sector.

“We reached a tentative agreement, which means an agreement in principle on all points of the deal, subject to a final contractual drafting“, indicates a letter that the union sent to its members and that the AFP was able to consult.

“We can say, with great pride, that this agreement is exceptional, with significant achievements and protections for screenwriters in all sectors”says the letter, which does not give details of the arrangement.

“To be clear, no one will return to work until specifically authorized by the union. We are still on strike until then. But, from today, we suspend the protests”, he indicates.

A brief joint statement from the WGA and the AMPTPTthe group that represents studios and streaming companies, confirmed the agreement.

The president of the United States, Joe Biden, celebrated the agreement this Monday. “I applaud“to both parties”for having reached an agreement in principle that will allow the scriptwriters to resume their important work“, he stated in a statement, in which he greeted the “power of collective bargaining.

Actors strike

Thousands of film and television scriptwriters stopped working in early May demanding better pay, bigger prizes for creating successful shows and protection against artificial intelligence (AI).

They have been mobilizing for months in front of studios such as Netflix and Disney, and in mid-July the striking actors joined them, leaving the normally busy Hollywood sets practically empty.

The actors union SAG-AFTRA congratulated the WGA for the principle of agreement and praised the “incredible strength, resistance and solidarity of the protests”.

“While we wait to review the WGA and AMPTP interim agreement, we remain committed to achieving the necessary conditions for our members”, reported the union.

Negotiations between the studios and the screenwriters had been stalled for weeks, until in recent days a new sense of urgency seemed to have been injected into the process, with the heads of Netflix, Disney, Universal and Warner Bros. Discovery.

Among their claims, the screenwriters claim that their salaries have not kept pace with inflation and that the rise of internet streaming has reduced payments.residual”, which they earn when a series they work on becomes a huge hit.

Screenwriters have also demanded that the use of AI be limited, as they fear that it could be used to partially replace them in the development of film or series scripts, which would further reduce their income.

US$5 billion

The Financial Times reported on a report by the Milken Institute that, at the beginning of September, estimated the cost of the strike for Hollywood at around US$5 billion.

At 146 days, the WGA strike is much longer than that of the screenwriters who paralyzed their activities for 100 days between 2007 and 2008, and which cost US$2.1 billion to the California economy.

Although the writers’ strike ends, it will not necessarily be the case with the actors’ strike, which will continue. There are no reports of conversations between the studios and SAG-AFTRA, which brings together 160,000 of them.

“We remain on strike over our TV/Theater contract and continue to urge studio and streamer CEOs and the AMPTP to come back to the table and reach the fair agreement our members deserve and demand.”SAG-AFTRA confirmed.