john august

Members of the Writers Guild of America have officially ratified their newest contract with the Alliance of Motion Picture and Television Producers.

More than 90% of the 11,000 voting members in both WGA East and West registered their support of the new agreement. The voting period closed Friday at noon, after the union first struck a tentative deal earlier this month.

The new contract includes a robust healthcare plan in which studios pay over $320 million to sustain the health fund, higher residual rates — including a provision for a “success bonus” for the most popular streaming shows from 50% of the base residual to 75% — and language on the licensing of work for AI training.

“The first reaction [from members] was relief that we were not going to be going into a period of labor strife or strike authorization vote, in the midst of this contraction,” said John August, the co-chair of WGA’s negotiating committee, referring to the ongoing challenges in the industry. “Members want to work, and they want to get back to doing their job.”

Negotiations between the union and film and TV studios began in March, as the union’s current contract expires May 1. August said that, at the beginning of the negotiations, expanding the healthcare plan was a top priority. The union was able to secure increases that would raise the cap that companies pay to as high as $400,000 by 2028.

Union officials say the current cap has remained unchanged for two decades as healthcare contributions have steadily declined because there are fewer working writers.

But under the new contract, members would, for the first time, have to start contributing to their healthcare costs to the tune of $75 per month. The earnings threshold to get coverage would increase by about $7,000 to $53,773, leaving many members concerned about the higher cost.

“This is all difficult. Healthcare in America is not a good situation. But we were really mindful, as we always are, of trying to make sure the career of writing is sustainable,” negotiating committee co-chair Danielle Sanchez-Witzel said.

Additionally, the contract terms have been extended from the WGA’s usual three years to four — though it is not the first time the guild has added more time to its deal with the studios. Sanchez-Witzel clarified that the four-year period for the new contract ”is, by no means, a standard. This is just what we needed this year and what we agreed to for this cycle.”

“We were here in 2026 trying to get some things that we didn’t get earlier [in previous negotiation cycles] and happy for the progress we made,” she said.

The WGA is the first of the Hollywood unions to strike a deal with the studios. AMPTP congratulated the WGA on the ratification in a statement released shortly after the vote totals were announced.

“This deal reflects a collaborative approach that supports both writers and the industry’s long-term stability,” AMPTP said.

SAG-AFTRA and the Directors Guild of America still need to negotiate new contracts.

The actors’ union began its negotiations in February and extended those talks in March, but paused to allow AMPTP to finish its deal with the writers’ union. SAG-AFTRA’s and the DGA’s contracts expire June 30.

It has been nearly three years since Hollywood writers went on a historic strike that lasted 148 days and ushered in an extraordinary period of labor unrest that virtually shut down the film and TV business.

Now, writers are poised to commence another round of bargaining with the major studios on a new three-year film and TV contract. Few observers think the union is girding for another showdown, especially at a time when many of its members are struggling to find work amid media consolidation and belt-tightening.

But in advance of negotiations that begin on Monday , union leaders are eager to dispel any perception that they might have scaled back their demands.

“Our members have shown many times that they’re willing to fight for what we need as a collective group,” WGA West President Michele Mulroney said in an interview. “And there’s no exception here.”

With its current contract expiring on May 1, the WGA hopes to improve its members’ healthcare plans, increase streaming residuals and expand AI protections.

Michele Mulroney speaks as the Screen Actors Guild (SAG-AFTRA) and Writers Guild of America (WGA) join GLAAD in releasing the 11TH Annual GLAAD Studio Responsibility Index at The Village at Ed Gould Plaza Los Angeles LGBT Center in Los Angeles, California, on September 14, 2023.

(Michael Tran/AFP via Getty Images)

Ellen Stutzman, the union’s executive director, said despite popular belief, the studios have weathered the transition from cable television to streaming “very well,” citing their efforts to maximize revenue with streaming bundling, rising subscription fees and advertising revenue.

“Writers are watching as Netflix and Paramount are fighting it out to acquire Warner Bros… Paramount is spending $81 billion,” said Stutzman. “There’s money for a fair deal for writers.”

The union leaders agree that this year’s negotiations are all focused on the sustainability of a writer’s career.

A spokesperson from the Alliance of Motion Picture and Television Producers, which represents the major studios in negotiations, said in a statement that they look forward “to engaging in a constructive and collaborative bargaining process with the WGA. Through continued good-faith dialogue, we are confident we can reach balanced solutions that support talented writers while sustaining the long-term success and stability of our industry and its workforce.”

A top priority for the WGA is to increase the caps that companies contribute to the union’s healthcare plan. Union officials say the current cap has remain unchanged for two decades as healthcare contributions have steadily declined due to fewer writers working.

AI is also top of mind for the WGA.

In 2023, the guild secured various AI protections by establishing that AI isn’t a writer and nothing it produces is considered literary material.

But as major studios start to make deals with AI companies, like Disney’s $1 billion investment into OpenAI’s Sora platform, many writers are concerned about how their work could be used.

“AI is using [studios’] IP, which is stuff that we wrote to license these models,” said John August, the co-host of the “Scriptnotes” podcast and WGA’s negotiating committee co-chair. “With the Sora deal, it seems clear that the companies intend to monetize this IP for use with AI.”

August says the union will be skeptical toward arguments that it’s still too early to seek more safeguards around such a nascent industry, citing the union’s past history with the rise of DVDs and the internet and how profoundly those technologies changed the compensation for writers.

“If you’re taking the work that we created to generate AI outputs, we are owed money. They’re using our work to do something down the road,” added August.

WGA’s negotiating committee also is looking to boost streaming residuals, expand the minimum number of people allowed in a writers’ room and add protections for scribes working on pilots.

“We very much hope that lessons were learned in 2023 and that the AMPTP will come to the table ready to take our proposal seriously and to make a fair deal, and to do that quickly,” Mulroney said. “It provides stability for the companies and for our membership. It’s better for everybody.”

WGA is entering contract negotiations nearly a month after the actors’ union, SAG-AFTRA, began its bargaining sessions. Last week,
the AMPTP said it was extending negotiations another seven days.