Studios Suspend Talks with SAG-AFTRA; AMPTP Says Gap Between Sides ‘Is Too Great’
UPDATED at 3:32 a.m. ET with SAG-AFTRA Statement: The actors will remain on strike for now. Negotiations between SAG-AFTRA and the AMPTP have been suspended after more than a week of what was previously thought to be civil, productive talks.
The AMPTP said in a statement late on October 11 that following the guild’s most recent proposal, the sides are too far apart.
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“After meaningful conversations, it is clear that the gap between the AMPTP and SAG-AFTRA is too great, and conversations are no longer moving us in a productive direction,” the AMPTP said. “SAG-AFTRA’s current offer included what it characterized as a viewership bonus that, by itself, would cost more than $800 million per year — which would create an untenable economic burden. SAG-AFTRA presented few, if any, moves on the numerous remaining open items.”
In response, SAG-AFTRA said the latest offer from the studios was worth less to members than what was offered in July, when talks first broke down and before the strike began. The actors guild claims the studios are misrepresenting the details of their proposal to the press and over-inflating the numbers offered — or in SAG’s exact words, “bullying tactics.” These are the same “failed” methods used with WGA members to pressure or fool them, the actors guild said.
“These companies refuse to protect performers from being replaced by AI, they refuse to increase your wages to keep up with inflation, and they refuse to share a tiny portion of the immense revenue YOUR work generates for them,” SAG-AFTRA said in a statement. “We have made big, meaningful counters on our end, including completely transforming our revenue share proposal, which would cost the companies less than 57¢ per subscriber each year. They have rejected our proposals and refused to counter.”
The full statement can be read at the bottom of this story.
The two sides met on five instances across the last eight workdays, with CEOs from the studios present. Reports trickled out earlier in the day, however, that talks did not go as smoothly as they had before.
The AMPTP sent a bulleted list to the media including its latest proposals: a success-based residual for streaming projects (something the WGA also negotiated), what the studios called “the highest percentage increase in minimums in 35 years,” guardrails on self-taped auditions, wage increases for stunt performers, and more.
On the issue of AI, the studios said they offered SAG-AFTRA “advance consent” for performers and background actors on creating and using digital replicas: a digital replica can’t be made without written consent as described for use in the film, the AI double can’t be used again later unless specifically agreed to and is compensated, and “digital alteration” of an actor’s performance wouldn’t be permitted without consent.
The SAG negotiating committee specifically pushed back on this point, saying that the studios’ request for “consent” will come on an actor’s “first day of employment.” That snap yes/no decision will then apply over “an entire cinematic universe (or any franchise project).”
The studios said the proposals on more common issues were the same offered to the DGA and WGA, but SAG-AFTRA rejected these. SAG-AFTRA initially demanded 11 percent wage increases in minimums, and both of the other guilds ultimately settled for a 5 percent increase in the first year.
“We hope that SAG-AFTRA will reconsider and return to productive negotiations soon,” the studios’ statement concludes.
The actors got back into the room with the studios within days of the Writers Guild calling an end to its strike, one that lasted 148 days. Earlier this week on October 9, WGA members overwhelmingly ratified the deal its guild had negotiated, officially putting an end to the strike.
People around town were hopeful that a deal to end the actors strike could be within sight, with projections that productions could be up and running by early November and new scripted television returning by January. Any further delays threatens to delay the TV schedule and the theatrical slate for 2024 — even beyond where it already is.
The suspension also comes just as the Directors Guild of America sent a letter to its members defending the deal it had negotiated back in early June. Though guild members ratified it, the guild tried to set the record straight on “news articles and social media posts misrepresenting the extraordinary gains we made,” with some members quietly griping that the deal is a poor one compared to what the writers went to the picket lines to demand.
Below, see the full list of proposals according to the AMPTP.
A first-of-its-kind success-based residual for High-Budget SVOD productions.
The highest percentage increase in minimums in 35 years, which would generate an additional $717 million in wages and $177 million in contributions to the Pension and Health Plans during the contract term.
A 58% increase in salaries for major role (guest star) performers wages on High Budget SVOD Programs.
A 76% increase in High Budget SVOD foreign residuals for the four largest streaming services.
Substantial increases in pension and health contribution caps, ranging from 22-33%, which will make it easier for performers to qualify for additional periods of health coverage and earn years of service toward a pension.
Meeting nearly all of the Union’s demands on casting, including guardrails around self-tapes, options for virtual and in-person auditions, and accommodations to performers with disabilities.
Compensation adjustments of 25% for singers who dance and dancers who sing on camera in the same session, whether in rehearsal or photography, representing a 30% increase over current wages.
Wage increases for stunt coordinators of 10% in the first year and outsized increases in years two and three, and giving television stunt coordinators fixed residuals for the first time ever.
Substantial improvements in relocation allowance – a 200% increase if the performer is on an overnight location for 6 months. The relocation allowance would now be payable for every season in which the performer is on an overnight location (versus a current limit of two to four seasons).
Substantial increases in Schedule F money breaks of between 11% and 41%. The 41% increase applies to one-hour television programs, which covers the largest number of productions done under the Agreement.
A 25% increase in span money breaks.
Covering performance capture work under the Agreement, which the Union has sought for 20 years.
On AI protections:
Advance consent from the performer and background actor to create and use Digital Replicas;
No Digital Replica of the performer can be used without the performer’s written consent and description of the intended use in the film;
Prohibition of later use of that Replica, unless performer specifically consents to that new use and is paid for it; and,
A “Digital Alteration” that would change the nature of an actor’s performance in a role is not permitted without informing the performer of the intended alteration and securing the performer’s consent.
Statement to SAG-AFTRA Membership
It is with profound disappointment that we report the industry CEOs have walked away from the bargaining table after refusing to counter our latest offer. We have negotiated with them in good faith, despite the fact that last week they presented an offer that was, shockingly, worth less than they proposed before the strike began.
These companies refuse to protect performers from being replaced by AI, they refuse to increase your wages to keep up with inflation, and they refuse to share a tiny portion of the immense revenue YOUR work generates for them. We have made big, meaningful counters on our end, including completely transforming our revenue share proposal, which would cost the companies less than 57¢ per subscriber each year. They have rejected our proposals and refused to counter.
Instead they use bully tactics. Just tonight, they intentionally misrepresented to the press the cost of the above proposal – overstating it by 60%. They have done the same with A.I., claiming to protect performer consent, but continuing to demand “consent” on the first day of employment for use of a performer’s digital replica for an entire cinematic universe (or any franchise project).
The companies are using the same failed strategy they tried to inflict on the WGA – putting out misleading information in an attempt to fool our members into abandoning our solidarity and putting pressure on our negotiators. But, just like the writers, our members are smarter than that and will not be fooled.
We feel the pain these companies have inflicted on our members, our strike captains, IATSE, Teamsters and Basic Crafts union members, and everyone in this industry. We have sacrificed too much to capitulate to their stonewalling and greed. We stand united and ready to negotiate today, tomorrow, and every day.
Our resolve is unwavering. Join us on picket lines and at solidarity events around the country and let your voices be heard.
One day longer. One day stronger. As long as it takes.
Your TV/Theatrical Negotiating Committee.
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