The Writers Guild of America has made a surprise deal with the major studios, nearly a month before the union’s contract was due to expire.
The guild reached a tentative agreement on Saturday with the Alliance of Motion Picture and Television Producers. The deal will run for four years — instead of the typical three-year term — a significant benefit to the studios, which will get an extra year without the possibility of a strike.
Details were not immediately forthcoming, but the deal was expected to include a major cash infusion into the guild’s teetering health fund, which has bled $200 million over the last four years.
The deal must still be approved by the WGA board and sent to members for ratification. The WGA and AMPTP did not comment.
The early agreement marks a stark contrast from the last contract cycle, when the WGA went on strike for 148 days to secure improvements in streaming residuals, TV staffing minimums, and other terms.
There was little appetite for a strike this time around, which would only exacerbate the global contraction in the industry. The staff of the WGA West has also been on strike for more than six weeks, and would no doubt be needed in order to facilitate meetings, communications and other tasks associated with a strike.
In a break from recent custom, the WGA did not even ask its members to authorize a strike this time — which would also require some amount of staff work.
The health fund was the top item on the agenda this cycle. It was expected that the union would have to make some cuts to the benefit plan as part of a deal to rein in spiraling health costs, but no provisions were immediately released.
The union also sought improvements on the gains reached in 2023, including on streaming residuals and TV staffing minimums. The union also wanted to focus on artificial intelligence, seeking payment if screenplays were used in AI training.
The WGA contract was due to expire on May 1. The AMPTP still must reach a deal with SAG-AFTRA and the Directors Guild of America. The studios negotiated for more than a month with the performers’ union in February and March, but broke off in order to turn their attention to the writers. The SAG-AFTRA and DGA deals each expire on June 30.
The WGA agreement could set a template for those deals on issues common to all three unions.
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