Hollywood let out a collective sigh of relief on Wednesday as SAG-AFTRA and the studios and streamers reached a tentative deal, ending the 118-day strike.
The work stoppage will be suspended at just past midnight Pacific Time on Thursday (12.01am PT), allowing actors to resume work.
Deal terms were not disclosed and are expected to emerge after the union’s national board examines the deal on Friday
SAG-AFTRA hailed “a deal of extraordinary scope” which it said was valued at more than $1bn and included terms on the key sticking points throughout the negotiating process: “above-pattern” minimum compensation rises, consent and compensation protections around AI, and an unprecedented streaming participation bonus.
“We have arrived at a contract that will enable SAG-AFTRA members from every category to build sustainable careers,” the union’s negotiating committee said in a statement on Wednesday evening. “Many thousands of performers now and into the future will benefit from this work.”
AMPTP issued its own statement calling the tentative deal “a new paradigm”, adding it looked forward to the industry resuming “the work of telling great stories”. Scroll to bottom to see both statements in full.
SAG-AFTRA needs to jump through a couple of hoops before the new three-year TV and theatrical deal is signed and sealed.
After the union’s national board reviews the deal for approval on Friday it will then pass to the 160,000-strong membership who will vote on whether or not to ratify – a process that could take around a week.
The tentative agreement comes after a stop-start negotiation which restarted in early October after SAG-AFTRA went on strike on July 14.
When talks broke down on October 11 there were fears a deal might be a long way off as the parties remained at loggerheads on minimum compensation, AI protections, and residuals. AMPTP said the gap between the sides was too great, while the union cried “bully tactics”.
Sarandos drew the ire of SAG-AFTRA the following day when he told a conference the union had proposed what he called a levy on each studio and streamer’s global subscribers, adding the proposal was “a bridge too far to add this deep into the negotiation”.
AMPTP said the measure would costs its members $800m a year. SAG-AFTRA countered that the estimate was grossly overinflated and its proposal would amount to less than 57 cents per subscriber. Head negotiator Duncan Crabtree-Ireland rubbished Sarandos’s description, telling Screen: “Compensating workers for their work is not a tax.”
In late October a cabal of A-listers led by George Clooney proposed a removal of the ceiling on union dues to bring what it claimed would amount to $150m over three years into the coffers, as well as a bottom-up residual plan. The measure was politely put to one side by the union amid questions over its legality.
By the second half of October talks had resumed, with the so-called Gang Of Four – studio heads Donna Langley (NBCUniversal), Bob Iger (Disney), David Zaslav (Warner Bros Discovery), and Ted Sarandos (Netflix) – in attendance for multiple consecutive days.
Heading into Halloween the union was ridiculed when it urged members wearing costumes during the festivities to choose generic characters and not those from films or TV shows by struck companies.
Last week negotiations appeared to be nearing the finish line, AMPTP issued its “last, best and final offer” over the weekend and this week a breakthrough in bargaining over AI protections signalled that resolution was close.
On Wednesday evening Writers Guild of America West and East, who signed their new deal in October, issued the following statement: ”Congratulations to the SAG-AFTRA Negotiating Committee for reaching a tentative agreement after striking for 118 days to address the challenges actors were facing. We’re thrilled to see SAG-AFTRA members win a contract that creates new protections for performers and gives them a greater share of the immense value they create. When workers are united, they win!”
SAG-AFTRA statement:
The SAG-AFTRA TV/Theatrical Negotiating Committee today sent the below message to its membership:
We are thrilled and proud to tell you that today your TV/Theatrical Negotiating Committee voted unanimously to approve a tentative agreement with the AMPTP. As of 12:01am PT on Nov. 9, our strike is officially suspended and all picket locations are closed. We will be in touch in the coming days with information about celebration gatherings around the country.
In a contract valued at over one billion dollars, we have achieved a deal of extraordinary scope that includes “above-pattern” minimum compensation increases, unprecedented provisions for consent and compensation that will protect members from the threat of AI, and for the first time establishes a streaming participation bonus. Our Pension & Health caps have been substantially raised, which will bring much needed value to our plans. In addition, the deal includes numerous improvements for multiple categories including outsize compensation increases for background performers, and critical contract provisions protecting diverse communities.
We have arrived at a contract that will enable SAG-AFTRA members from every category to build sustainable careers. Many thousands of performers now and into the future will benefit from this work.
Full details of the agreement will not be provided until the tentative agreement is reviewed by the SAG-AFTRA National Board.
We also thank our union siblings — the workers that power this industry — for the sacrifices they have made while supporting our strike and that of the Writers Guild of America. We stand together in solidarity and will be there for you when you need us.
Thank you all for your dedication, your commitment and your solidarity throughout this strike. It is because of YOU that these improvements became possible.
In solidarity and gratitude,
Your TV/Theatrical Negotiating Committee
AMPTP statement:
Today’s tentative agreement represents a new paradigm. It gives SAG-AFTRA the biggest contract-on-contract gains in the history of the union, including the largest increase in minimum wages in the last forty years; a brand new residual for streaming programs; extensive consent and compensation protections in the use of artificial intelligence; and sizable contract increases on items across the board. The AMPTP is pleased to have reached a tentative agreement and looks forward to the industry resuming the work of telling great stories.”
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