WGA and AMPTP Reach Tentative Labor Agreement Amidst Internal Staff Strike
The Writers Guild of America (WGA), representing both WGA East and WGA West, and the Alliance of Motion Picture and Television Producers (AMPTP) have reached a tentative four-year labor agreement. This significant deal, unanimously approved by the WGA Negotiating Committee, follows approximately three weeks of negotiation and was announced on a Saturday, less than a month before the WGA's current contract was set to expire on May 1.
The tentative agreement marks a pivotal moment, being the first deal reached between an above-the-line entertainment union and the AMPTP this bargaining cycle.
Concurrently, the Writers Guild of America West continues to face an ongoing strike by its own staff union, which began in February over allegations of unfair labor practices.
Tentative Agreement Between WGA and AMPTP
The tentative agreement, covering the 2026 Minimum Basic Agreement (MBA), sets a new precedent for industry negotiations. The AMPTP, representing major Hollywood studios and streamers, confirmed the agreement, expressing a desire to build on this progress for long-term industry stability.
Key Provisions of the Agreement:
While specific terms were initially disclosed after board confidence, the agreement is anticipated to include several key provisions:
-
Contract Length: The agreement spans four years, one year longer than typical previous agreements. The AMPTP had initially sought a five-year contract but accepted four, a duration that reportedly met with initial hesitation from both the WGA and SAG-AFTRA.
-
Health Plan: The deal aims to protect and sustain the WGA health plan. This includes a record $321 million payment from the AMPTP into the WGA health plan, increases in employer contribution caps, and negotiated plan changes effective in 2027 to preserve choice and manage out-of-pocket costs for writers. The health plan had experienced a $200 million deficit over the past four years, with an estimated $37 million in additional costs projected for 2025. These changes require approval from the guild's board of trustees to receive the funds.
-
Artificial Intelligence (AI): Enhanced protections against artificial intelligence use are included, with new rules regarding AI. This encompasses provisions for licensing for AI training. The AMPTP agreed to continue discussions on AI implementation and to notify the WGA if writers' work is licensed for AI training. The deal does not establish specific pay for AI training, although the WGA had sought compensation if screenplays were utilized for AI training.
-
Compensation and Residuals: The agreement builds upon gains from 2023, addressing challenges related to uncompensated work. It includes increases in domestic and foreign residuals for streaming content, with the success bonus from the 2023 contract set to increase to a 75% base residual for popular shows. Annual minimum rate increases, pension increases, and additional compensation for streaming video on demand are also anticipated.
-
Professional Standards: Provisions include safeguards against uncompensated work, an expanded guaranteed second step requirement for screenwriters, strengthened regulation of screen roundtables, improved regulation of 'if/come' and other development deals, and better terms for TV series employment. The deal retains the status quo on minimum staffing.
Ratification Process:
The tentative contract requires approval by the guild's board and its members before it can be formally ratified. The WGA Negotiating Committee unanimously approved the deal. Voting for rank-and-file WGA members is scheduled from April 16-24, requiring over 50% support for ratification. The WGA has made the details public ahead of the vote.
Negotiation Context:
The agreement follows a period marked by labor disputes in Hollywood, including a 148-day WGA strike in 2023 that impacted production schedules. This time, the WGA did not hold a strike authorization vote. Negotiations, which began in mid-March, were described as constructive. Under the leadership of Greg Hessinger, the AMPTP reportedly adopted a different negotiation strategy compared to previous cycles, aiming for a "reset in the relationship."
Broader Industry Labor Landscape
The WGA agreement could establish a framework for upcoming negotiations between the AMPTP and other entertainment unions. The AMPTP is currently engaged in negotiations with leaders of unions representing actors (SAG-AFTRA) and directors (Directors Guild of America - DGA), whose contracts are scheduled to conclude at the end of June.
-
SAG-AFTRA: The actors' union also undertook months-long strikes in 2023. SAG-AFTRA's negotiations were paused to allow the WGA to finalize its deal and are expected to resume in June or earlier. SAG-AFTRA chief negotiator Duncan Crabtree-Ireland previously indicated the necessity of robust AI protections for any extended contract agreement.
-
Directors Guild of America (DGA): The DGA is scheduled to bargain with the AMPTP in May. DGA President Christopher Nolan has expressed reservations about accepting longer deals, citing the rapid evolution of the industry.
A central focus of these industry talks has been job security, given the impact on Hollywood from production shifts and a decline in traditional projects across film and television.
Internal Dispute: WGA West Staff Strike
Separately, the Writers Guild of America West is facing an ongoing strike by its own staff union, the Writers Guild Staff Union (WGSU). The strike, involving over 100 employees from departments including legal, events, and residuals, began in mid-February over allegations of unfair labor practices.
Allegations and Demands:
The WGSU initiated the strike citing allegations of unfair labor practices (ULPs) by WGA West management, including "surface bargaining," unilateral changes to the status quo, "unlawful surveillance," retaliation, and the alleged unlawful termination of an organizing committee member.
The staff union's proposals include just cause and grievance procedures, protections from AI in the workplace, work-from-home provisions, sustainable workloads, pay increases aiming for living wages, and a strong union wage scale. The WGSU reports that 64% of its members earn below $84,850 annually, identified as the "low income" threshold for a single-person household in Los Angeles County. They seek a minimum annual salary of $59,737.
WGA West Response and Offers:
The WGA West has denied allegations of labor law violations, stating it has been bargaining in good faith since September and has offered comprehensive proposals for union protections, compensation, and benefits. The WGA West management's offer includes a minimum annual salary of $55,000. Regarding AI, management has stated no current intention to use it but offered paid training if use were to occur.
Impact and Latest Developments:
The internal strike has led to the cancellation of the WGA West's annual award ceremony in March. The WGA West headquarters has been closed to members and the public, and guild events and meetings have been canceled. Striking WGSU members were informed that their health insurance coverage would be terminated effective April 1.
WGA West Executive Director Ellen Stutzman has met with the staff union's leadership, outlining a path to a deal based on management's March 11 proposal, with some room for negotiation. The potential impact of this internal strike on the tentative deal with the studios remains unclear, though WGA leadership has stated that AMPTP negotiations would proceed with minimal disruption due to non-striking executive and managerial staff handling core Guild functions.