Los Angeles, CA – The Screen Actors Guild-American Federation of Television and Radio Artists (SAG-AFTRA) and the Alliance of Motion Picture and Television Producers (AMPTP) have successfully reached a tentative labor agreement, averting what could have been a devastating fall strike that would have brought Hollywood productions to a standstill. The announcement comes after three weeks of intensive negotiations and marks a significant victory for both labor advocates and industry stakeholders.
The new three-year contract includes substantial gains for actors, including an 11% immediate wage increase, improved streaming residuals calculated on subscriber counts rather than flat fees, and enhanced protections regarding the use of artificial intelligence in reproducing actors’ likenesses and voices. According to SAG-AFTRA President Fran Drescher, who led the negotiations, “This agreement represents a paradigm shift in how we value performers’ work in the digital age.”
The deal also addresses long-standing concerns about self-taped auditions, establishing compensation for extensive callback requests and limiting the commercial use of audition footage. Additionally, the contract includes provisions for improved health and pension benefits, with studios agreeing to increase contributions by 7% over the contract term.
“This resolution demonstrates what’s possible when both sides commit to good-faith negotiations,” said Carol Lombardini, President of the AMPTP. “The entertainment industry can now move forward with certainty, and productions scheduled for fall and winter can proceed as planned.”
Industry analysts estimate that a strike would have cost the California economy approximately $3 billion per month and affected over 160,000 jobs. The entertainment trade publication Variety reported that major studios had already begun contingency planning, including accelerated production schedules and increased focus on reality television and international content.
The tentative agreement now goes to SAG-AFTRA’s national board for approval before being presented to the full membership for ratification. Union leadership has recommended approval, and the ratification vote is expected to pass with strong support. If approved, the contract will take effect immediately and remain in force through 2028.
Source: Aggregated by MetaNews USA — original reporting credited to Variety, The Hollywood Reporter, and Deadline, with labor expert commentary from industry analysts.
