Why Are the Unions Striking
SAG‑AFTRA and the WGA began industrial action after failing to reach new collective bargaining agreements with the Alliance of Motion Picture and Television Producers. Key disputes include residual payments for streaming content and the increasing use of AI in writing and acting. Writers argue that streaming residuals are insufficient, while actors fear AI could replicate their likenesses and undermine their work. The WGA proposed that AI should not rewrite literary material or be used as source material. AMPTP rejected this proposal.
How the Law Shapes the Dispute
As trade unions, SAG‑AFTRA and the WGA negotiate terms and conditions of employment with AMPTP. Members have the right to authorise strike action when negotiations fail. In April, 97.85 per cent of WGA members voted to strike if no agreement was reached before 1 May. SAG‑AFTRA entered similar negotiations and walked out when their contract expired in July.
The unions are now refusing to work until they reach a new collective bargaining agreement. Their actions are lawful under United States labour law, which permits strikes when negotiations reach an impasse.
Impact on the Entertainment Industry
The strikes have caused the largest production halt since the Covid‑19 pandemic. Blockbusters, television series, talk shows and even the upcoming Emmy broadcast have been postponed. SAG‑AFTRA represents 160,000 actors and the WGA represents 11,500 writers, meaning the disruption is vast.
Economic consequences are already visible. Forbes estimates that the strike could cost California's economy USD$3 billion. Businesses such as catering companies, set builders and florists have also been affected. Strike rules prohibit members from participating in press or promotion for any production, meaning films released during the strike receive no publicity from their stars.
The deadlock affects not only studios and union members but also the wider ecosystem that supports film and television production.
How the Strikes Affect the UK
The UK and US film sectors are closely connected, so any production involving SAG‑AFTRA or WGA members has been halted. However, Equity, SAG‑AFTRA's British sister union, has advised its members to continue working. Equity states that the SAG‑AFTRA strike is lawful under US law but not under UK law. Under section 224 of the Trade Union and Labour Relations (Consolidation) Act 1992, secondary action is unlawful. If Equity members joined the strike, they could be sued for breach of contract.
Equity has organised rallies in solidarity but cannot legally strike. UK labour laws are stricter than those in the US. Paul W Fleming, Equity's General Secretary, described UK industrial relations laws as "draconian". The Trade Union Act 2016 tightened strike requirements, including a 50 per cent turnout threshold and a minimum of two weeks' notice.
As the US strikes continue, non‑SAG actors in the UK face significant disruption. Some productions have shut down entirely, leaving actors out of work. Others continue filming without a portion of their cast or writing teams. The entertainment industry's global nature means the effects are widespread.
The Role of AI and the Future of Negotiations
The strikes have intensified concerns about AI. Netflix and other studios have advertised for AI product manager roles, suggesting an interest in expanding AI capability. This may be part of a broader strategy to mitigate disruption and integrate new technologies into production.
Both unions have stated that they will not settle for less than their proposals. AMPTP remains unwilling to concede. Without renegotiation, the parties cannot reach a new collective bargaining agreement. Until they reach an agreement, the stalemate will continue.
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