Indexbit Exchange:SAG-AFTRA reaches tentative agreement with Hollywood studios in a move to end nearly 4-month strike

SAG-AFTRA reaches tentative deal to end strike

The union representing film and television actors has struck a tentative deal with entertainment industry studios on a new labor contract, SAG-AFTRA announced Wednesday, moving the sides closer to ending what has been a contentious nearly four-month strike.

"In a unanimous vote this afternoon, the SAG-AFTRA TV/Theatrical Committee approved a tentative agreement with the AMPTP bringing an end to the 118 day strike," the union said Wednesday in a statement. While the new contract must still be ratified by SAG-AFTRA membership, the union announced the strike will end Thursday at 12:01 a.m.

The full details of the agreement were not immediately made available. SAG-AFTRA's national board will review the agreement and could approve it as early as Friday. Then, the pact' details will be released, and the guild's full membership will vote on it.

In a letter to members, SAG-AFTRA said the deal "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." The union also said it had secured increases to its pension and health caps and "outsize compensation increases for background performers."

The Alliance of Motion Picture and Television Producers made what the group described as its "last, best and final offer" to the Screen Actors Guild-American Federation of Television and Radio Artists on Saturday. 

SAG-AFTRA, which represents roughly 160,000 performers, said on social media on Monday that it was pushing to "bring this strike to an end responsibly," while noting that negotiators remained at odds on key issues, including the studios' use of artificial intelligence. 

The AMPTP is a trade association that represents movie and TV producers, including Apple, Amazon, Disney, Paramount, Universal and Warner Brothers Discovery (Some CBS News staff are SAG-AFTRA members, but they work under a different contract than the actors and are not affected by the strike.)

The AMPTP said in a statement that Wednesday's deal "represents a new paradigm" that "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."

"Fair agreement"

The film and TV work stoppage — the longest in SAG's history — has halted film and scripted TV production, delaying major movie releases and causing financial hardship for thousands of working actors.

"I am grateful that a fair agreement has been reached between SAG-AFTRA and AMPTP after a more than 100 day strike that impacted millions in Los Angeles and throughout the country," Los Angeles Mayor Karen Bass said in a statement Wednesday.

"Today's tentative agreement is going to impact nearly every part of our economy. Now, we must lean in on local production to ensure that our entertainment industry rebounds stronger than ever and our economy is able to get back on its feet," Bass added.

Sticking points in the often bitter negotiations included actors seeking limitations on studios using AI to re-create actors' likenesses and performances, updated compensation structures to reflect the growth of streaming, and enhanced health and retirement benefits.

Specifically, actors pushed for more lucrative residual payments for their work in streaming shows, saying their income has plunged even as studio revenues from online video have soared.

In its statement, SAG-AFTRA officials said the labor agreement with the AMPTPA will enable members of the union "from every category to build sustainable careers. Many thousands of performers now and into the future will benefit from this work."

— The Associated Press contributed to this report.

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• SAG-AFTRA
• Strike

Megan Cerullo

Megan Cerullo is a New York-based reporter for CBS MoneyWatch covering small business, workplace issues, the business of health care and personal finance. She regularly appears on CBS News streaming to discuss her reporting.