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The Directors Guild of America’s national board on Friday unanimously recommended its membership vote in favor of a four-year contract with the major studios that would increase wages, boost contributions to its health plan and establish guardrails surrounding AI technology.

“We entered this negotiation with three main priorities: secure our Health Plan, protect jobs, and ensure that our members remain secure as AI continues to impact our industry,” DGA President Christopher Nolan said in a statement. “We succeeded in these areas and gained in many others.”

Under the proposed contract, major studios would increase their contributions to the DGA’s health plan by 24.4% over four years, the largest since the plan was founded. In return, the DGA would recommend changes to its plan’s trustees including “modest” increases to the eligibility threshold and annual premiums, the DGA said on Friday.

The contract also increases minimum salaries for most jobs by 2.5% in the first year and up 3% for each of the following years in the agreement. Directors of network non-prime time strip dramatic programs will see their minimum salaries increase 2.5% for each year under the agreement.

The union, which represents more than 19,500 directors and members of directorial teams in areas such as film, commercials and news, said the agreement helps the union’s push for a federal production incentive. Hollywood creatives believe such a benefit could prevent U.S. entertainment jobs from moving overseas where production costs can be significantly lower. The proposed agreement secures a commitment that most senior management at the major studios represented by the Alliance of Motion Picture and Television Producers “would engage in meaningful advocacy for a federal production incentive above and beyond the ongoing lobbying efforts of the Motion Picture Association,” according to the DGA.

The contract also adds more guardrails to AI technology, including treating footage created by artificial intelligence as the same as footage shot by a camera, meaning it will still be under the director’s control, according to the DGA. Major studios will also be required to notify the DGA if an employer decides to license a director’s work to train a generative AI system to create new work, the union said. The agreement also establishes an employer-funded program to enhance directors’ AI skills.

“With these gains, a four-year Agreement was both appropriate and necessary to provide stability and potential for growth at a moment when the industry has been experiencing contraction,” Nolan said in a note to members on Friday.

DGA and AMPTP reached the tentative contract earlier this week. At that time, AMPTP said “we appreciate the hard work and commitment of our guild partners in achieving a fair deal that helps advance a stable and successful entertainment industry.”

DGA members will have until June 25 at 5 p.m. to vote on the plan. If approved, the contract would go into effect July 1 and run through June 30, 2030.

The Director’s Guild of America has struck a tentative deal with the Alliance of Motion Picture and Television Producers, completing the negotiation cycle for Hollywood’s major unions.

SAG-AFTRA ratified its contract last week, the Writers Guild approved its deal back in April, and the DGA has similarly landed on a new contract, after nearly a month of negotiations. The latest deal with major film and TV studios was announced on Tuesday, but its terms have not yet been disclosed.

The Directors Guild, led by its president Christopher Nolan, reportedly entered negotiations in hopes of improving conditions to create new jobs, bulk up its health fund, and increase protections against generative AI.

“The tentative agreement will be presented to the DGA National Board for approval,” the DGA said in a statement. “Consistent with the Guild’s longstanding practice, terms of the agreement will not be released publicly until the National Board has completed its review.”

Negotiations started on May 11, and the current contract is set to expire on June 30. Once the DGA National Board approves the new contract, it will be sent to its members for a ratification vote. The union represents nearly 20,000 helmers, assistant directors, associate directors, unit production managers and stage managers.

The studios said they were pleased to have reached this latest tentative agreement with DGA.

“We appreciate the hard work and commitment of our guild partners in achieving a fair deal that helps advance a stable and successful entertainment industry,” AMPTP said in a statement.

The DGA’s tentative contract marks the last few steps of the current Hollywood union negotiation cycle. The previous one in 2023 was marked by the industry-stopping strikes from SAG-AFTRA and WGA, and the industry is still feeling the impact from them. But this year’s bargaining season was much quieter and uncontroversial. SAG-AFTRA and WGA will reconvene with the studios for bargaining in 2030, as they all signed four-year contracts.

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