Hollywood writers union reportedly reached a preliminary labour agreement with major studios, holding out hopes for an early end to one of the long-drawn strikes in the global capital of movie making.
The deal, reached on Sunday, is expected to end one of two strikes that have halted most film and television production and cost the California economy billions.
The three-year contract still must be approved by leadership of the Writers Guild of America (WGA,) as well as union members, before it can take effect, Reuters reported.
The WGA, which represents 11,500 film and television writers, described the deal as “exceptional” with “meaningful gains and protections for writers”.
“This was made possible by the enduring solidarity of WGA members and extraordinary support of our union siblings who joined us on the picket lines for over 146 days,” the negotiating committee said in a statement Sunday.
The WGA and AMPTP have reached a tentative agreement. This was made possible by the enduring solidarity of WGA members and extraordinary support of our union siblings who stood with us for over 146 days. More details coming after contract language is finalized. #WGAStrike pic.twitter.com/GBg2wZBwGB
— Writers Guild of America West (@WGAWest) September 25, 2023
The WGA settlement, while a milestone, however, will not return Hollywood to business as usual even if it is ratified.
While writing may resume, the SAG-AFTRA actors’ union still remains on strike.
Writers walked off the job on May 2 after negotiations reached an impasse over compensation, minimum staffing of writers’ rooms, the use of artificial intelligence and residuals that reward writers for popular streaming shows, among other issues.
The only comment from the Alliance of Motion Picture and Television Producers, the trade group representing Walt Disney (DIS.N), Netflix (NFLX.O), Warner Bros Discovery (WBD.O) and other major studios, came in a brief statement with the union.
“The WGA and AMPTP have reached a tentative agreement,” the statement said.
The proposed contract is still preliminary. The WGA’s negotiating committee said it would share details only after it receives final contract language.
After that, the negotiators will vote on whether to recommend the deal to leadership, which must then decide if they will present it to members for a vote.
Hollywood strikes disrupt film and TV
Hollywood’s dual strikes had shut down production of movies and TV series and sent late-night talk shows into re-runs.
The work stoppages took a toll on camera operators, carpenters, production assistants and other crew members, as well as the caterers, florists, costume suppliers and other small businesses that support film and television production.
The economic cost is expected to total at least $5 billion in California and the other US production hubs of New Mexico, Georgia and New York, according to an estimate from Milken Institute economist Kevin Klowden.
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