The Writers Guild of America has struck a surprise deal with a major studio nearly a month before the union’s contract is set to expire.
The guild reached a tentative agreement with the Motion Picture and Television Producers Alliance on Saturday. The deal lasts for four years instead of the usual three-year contract period, which is a huge benefit for the studio as it gives them an extra year without the possibility of a strike.
Details were not immediately disclosed, but the deal is expected to include a large cash injection into the guild’s teetering health fund, which has seen $200 million drained over the past four years.
The agreement still needs to be approved by the WGA Board of Directors and sent to members for ratification. WGA and AMPTP did not comment.
This initial agreement is in sharp contrast to the previous contract cycle, when the WGA went on strike for 148 days to secure improvements in streaming retention rates, minimum TV staffing levels, and other terms.
There was little appetite to strike this time, and strikes would only exacerbate the industry’s global contraction. WGA West staff have also been on strike for over six weeks and will no doubt be needed to facilitate meetings, communications and other work related to the strike.
In a break from recent practice, the WGA didn’t even ask its members to approve a strike this time, which would also require a lot of effort from its staff.
Health funding was at the top of this term’s agenda. Unions were expected to have to make some cuts to benefit programs as part of a deal to rein in soaring health costs, but no terms were immediately announced.
The union also called for improvements to achievements made in 2023, including streaming residuals and minimum TV staff numbers. The union also wanted to focus on artificial intelligence, demanding payment if scripts were used to train AI.
The WGA’s contract was scheduled to expire on May 1st. AMPTP still needs to reach an agreement with SAG-AFTRA and the Directors Guild of America. The studio negotiated with the cast union for more than a month in February and March, but broke down to focus its attention on the writers. The SAG-AFTRA and DGA deals each expire on June 30th.
The WGA agreement could serve as a template for agreements on issues common to all three unions.
