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SAG-AFTRA members approve deal with major studios

SAG-AFTRA members overwhelmingly approved a four-year TV and film deal with major studios including Netflix, Disney and Warner Bros. Discovery on Thursday night, increasing minimum wages and addressing concerns about the use of AI performers.

The deal, which was expected to be approved, received the support of 91% of SAG-AFTRA members who voted on the agreement, which starts July 1 and ends June 30, 2030. The union represents 160,000 performers, including actors, stunt performers and influencers.

“This agreement builds on the foundation members fought to establish and carries that work into the next chapter of our industry,” said SAG-AFTRA President Sean Astin in a statement. “It delivers meaningful gains in compensation, strengthens protections around artificial intelligence and digital identity, reinforces the long-term security of members’ benefit plans and recognizes the realities of how performers work today.”

Under the new deal, the length of the agreement between SAG-AFTRA and major studios represented by the Alliance of Motion Picture and Television Producers expands from three years to four years.

It also boosts minimum wage by 3% annually, increases contributions to the health plan by 1% and expands the bonus to the union’s Success Bonus Distribution Fund based on residuals that performers get for popular streaming programs.

The contract also addresses concerns about the growing use of artificial intelligence in TV and film and its impact on actor jobs. Last year, many actors spoke out about Tilly Norwood, a computer-generated “actor” and whether synthetic characters like her could threaten their livelihoods. Some performers have also advocated for getting paid if their likenesses are used to create such characters made through AI systems.

Not all members were in favor of the contract, saying it did not go far enough in protecting performers against AI.

“It normalizes the use of AI replicas and synthetic performers rather than drawing a firm line protecting human performers and their jobs,” said Chuck Slavin, a background actor and performer.

Slavin, a former New England local board member, ran against Astin for SAG-AFTRA president last year.

Producers agreed to “a principle strongly favoring human performances” and that producers would only use a synthetic if it “brings significant additional value to the motion picture.” If a producer decided to use a synthetic in a role that could be done by a human, they would need to notify the union and bargain in good faith.

Additionally, the contract merges the pension plans of the Screen Actors Guild and the American Federation of Television and Radio Artists, which were previously separate but combined in 2012 to form SAG-AFTRA.

Their health plans were consolidated in 2017, but the pensions have remained separate . That was a major sticking point with members, some of whom couldn’t qualify for benefits as their contributions were split between two plans. Studios agreed to boost their overall contributions to the combined plan by 1%.

SAG-AFTRA’s deal comes after the Writers Guild of America members also approved an agreement with the AMPTP in April.

The groups were able to agree on contracts this year, without striking as they did in 2023.

“SAG-AFTRA’s leadership brought a genuine commitment to partnership, and together with the WGA agreement, these deals demonstrate what is possible when the industry works toward practical solutions that support its long-term stability,” AMPTP said in a statement.

The Directors Guild of America began negotiations with AMPTP last month, with its contract expiring on June 30.

Staff writer Cerys Davies contributed to this report.

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Senators approve withholding their own pay during government shutdowns

Senators unanimously approved a resolution Thursday to withhold their pay during government shutdowns, an attempt to make federal closures financially painful for lawmakers after a string of record-breaking impasses in the past year.

The bipartisan support for the measure comes at a time when federal closures have become longer and more frequent, frustrating lawmakers who say there should be punishment when Congress fails at its most basic legislative duty.

Under the resolution, senators’ pay would be withheld by the secretary of the Senate whenever a government shutdown affects one or more agencies, then released once funding is restored. It will take effect the day after the Nov. 3 general election.

“Shutting down government should not be our default solution to our refusal to work out our issues and our differences,” said Sen. John Kennedy, the bill’s sponsor, in a floor speech Wednesday.

“This is about putting our money where our mouth is,” said Kennedy, R-La.

Two shutdowns in the past year created significant financial hardship for tens of thousands of federal workers, particularly at the Department of Homeland Security. The department reopened last month after a 76-day partial shutdown, the longest agency funding lapse in history.

The Homeland Security shutdown came just a few months after a 43-day lapse of the entire federal government, which was the longest such closure on record.

The Constitution stipulates that lawmakers must be paid so they have received salaries during shutdowns even as federal workers went without paychecks. When the full government shutdown began in October amid a dispute over health care subsidies, Sen. Lindsey Graham proposed a constitutional amendment to require members to forfeit their paychecks when the government is closed.

“If members of Congress had to forfeit their pay during government shutdowns, there would be fewer shutdowns and they would end quicker,” Graham, R-S.C., said at the time.

Graham said his legislation was the most “constitutionally sound” way to deal with the problem, but the process would have been much more laborious as three-fourths of states must ratify an amendment.

Lawmakers in previous shutdowns have often pledged to forgo their paychecks while federal workers went unpaid.

Kennedy told reporters Wednesday that he pushed his measure to ensure there is “shared sacrifice” during shutdowns. He added that it does not go as far as he would like, but that it’s a start.

Asked why it does not extend to the other chamber of Congress, Kennedy said “the House’s business is the House’s business” while also touching on the tensions between the Senate and House.

“There’s a very strong undercurrent of animosity among some of my friends in the House,” Kennedy said.

“It’s quickly becoming like two kids fighting in the back of a minivan,” he said.

Cappelletti and Jalonick write for the Associated Press.

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Warner Bros. shareholders approve controversial $111-billion Paramount takeover

Paramount Skydance’s proposed takeover of Warner Bros. Discovery cleared a major hurdle Thursday as Warner stockholders overwhelmingly embraced the $111-billion deal.

Approval was expected. Paramount Chairman David Ellison’s proposal would pay Warner investors $31 a share — four times the price of the company’s stock a year ago. Warner Bros. officials did not disclose the precise vote count during the nine-minute special shareholder meeting beyond saying the merger “received sufficient votes and has overwhelmingly passed.”

Paramount offered the generous premium to compete with, and ultimately triumph over, Netflix, which withdrew from the auction in late February after Ellison’s father, Oracle billionaire Larry Ellison, agreed to guarantee the financing of his son’s deal.

The merger would create a new Hollywood behemoth by giving Paramount, which owns CBS and the Melrose Avenue film studio, such valuable assets as HBO, HBO Max, CNN, TBS, Food Network and Warner Bros.’ film and television studios in Burbank. Warner controls beloved TV shows, franchises and movies, including “Casablanca,” Harry Potter, D.C. Comics, “Game of Thrones,” “Euphoria,” “The Pitt,” and “Rooster.”

“Shareholder approval marks another important milestone towards completing our acquisition of Warner Bros. Discovery, building on our successful equity and debt syndications and progress across regulatory approvals,” Paramount said Thursday in a statement. “We look forward to closing the transaction in the coming months and realizing the creation of a next-generation media and entertainment company that better serves both the creative community and consumers.”

Paramount now must secure regulatory approvals in the U.S. and abroad. Ellison, who is poised to honor President Trump with a dinner Thursday evening in Washington, hopes to complete the deal by late summer.

Shareholders, however, made known their disdain for Warner Chief Executive David Zaslav’s proposed golden parachute, which could swell to $887 million, depending on when the transaction closes. His cash, stock and options would be valued at more than $550 million. Warner board members also agreed to pay his tax bill, which could approach $330 million, should the merger be completed by year’s end.

Shareholders, in a non-binding vote, voted against Zaslav’s package.

Paramount’s deal has encountered significant opposition in Hollywood and beyond.

More than 4,000 filmmakers, actors and industry workers, including Ben Stiller, Bryan Cranston, Ted Danson, J.J. Abrams and Kristen Stewart have signed an open letter asking California Atty. Gen. Rob Bonta and other regulators to block the deal.

Opponents fear the consolidation would be lead to massive layoffs and diminish the quality of programming that Warner Bros., CNN and HBO are known for. Hollywood has sustained thousands of layoffs over the last six years; the film production economy hasn’t recovered from shutdowns during the 2023 labor strikes.

“This is already an incredibly consolidated industry where writers have seen merger after merger leave fewer and fewer companies in control of what our members can get paid to write,” Michele Mulroney, president of the Writers Guild of America West, said Wednesday during a press briefing organized by Free Press and other progressive groups that oppose the merger.

“A combined Warner Bros. and Paramount would create a media behemoth with tremendous leverage to reduce content, to raise prices, to increase control of production, to suppress member compensation, worsen working conditions and silence the voices of our members,” Mulroney said.

Trump has long agitated for changes at CNN, and few expect his Justice Department to block the transaction. Defense Department Secretary Pete Hegseth echoed the sentiment. “The sooner David Ellison takes over that network the better,” Hegseth told reporters in March.

It’s unclear whether Bonta or other state attorney generals will file a lawsuit to try to stop the deal. Bonta previously told The Times that his office is reviewing the consolidation.

“This deal can get blocked. I personally think it will get blocked — or undone,” Alvaro Bedoya, former Federal Trade Commission member who now serves as a senior adviser to the American Economic Liberties Project, told reporters Wednesday. He pointed to other proposed mergers that unraveled due to fierce opposition, including the proposed combinations of grocery giants Kroger and Albertson’s.

David Ellison has promised to keep HBO entact and the Paramount and Warner Bros. movie studios humming. He promised cinema owners last week that a combined Paramount-Warner Bros. would release 30 movies into theaters each year.

“This transaction uniquely brings together complementary strengths to create a company that can greenlight more projects, back bold ideas, support talent across multiple stages of their careers,” Paramount said in a statement to push back on the opposition. The company would have the power to “bring stories to audiences at a truly global scale — while strengthening competition by ensuring multiple scaled players are investing in creative talent.”

To finance the Warner takeover, Ellison’s billionaire father, Larry Ellison, has agreed to guarantee the $45.7 billion in equity needed. Bank of America, Citibank and Apollo Global have agreed to provide Paramount with more than $54 billion in debt financing.

Paramount has enlisted a former Trump administration official, lawyer Makan Delrahim, who served as Trump’s antitrust chief during the president’s first term.

In a confident move, Delrahim filed to win the Justice Department’s blessing in December — even though Paramount didn’t have an agreement with Warner Bros. Discovery’s board at the time. In February, a key deadline for the Justice Department to raise issues with Paramount’s proposed Warner takeover passed without comment from the Trump regulators.

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