WGA members approve strike authorization by historic margin

Leaders of the Writers Guild of America secured a strong showing of support from its members on Monday, moving the union closer to a possible work stoppage that would disrupt Hollywood production and ripple across Southern California’s economy.

WGA members voted by an historic 98% margin (among 9,218 ballots cast) in favor of a strike authorization, which allows union leaders to call a walkout if they are unable to negotiate a new film and TV contract.

“You have expressed your collective strength, solidarity, and the demand for meaningful change in overwhelming numbers,” the WGA said in a statement to members. “Armed with this demonstration of unity and resolve, we will continue to work at the negotiating table to achieve a fair contract for all writers.”

The current three-year contract, which covers about 11,500 members, expires May 1.

The vote — held between April 11-17 — adds pressure to already high stakes negotiations between the Alliance of Motion Picture and Television Producers and the Writers Guild of America over pay and conditions.

The strong endorsement is likely to strengthen the leverage union leaders have in contract negotiations that have so far failed to yield much progress in talks.

The radical transformation of the TV business caused by the rise of streaming platforms has fueled much of the labor conflict.

Writers are seeking a package of compensation increases valued at nearly $600 million. That includes increases in minimum pay and higher residual payments from streaming, along with increased contributions to the union’s health and pension plans.

Writers argue that despite the streaming boom, their median pay has fallen in the last decade, citing a WGA report.

Complicating matters is that major studios such as Walt Disney Co., Warner Bros. Discovery and Netflix are facing their own economic pressures to slash costs in the face of rising debt levels, a reassessment of the streaming business and a possible recession.

In a statement, the AMPTP said the ratification vote was not a surprise.

“Our goal is, and continues to be, to reach a fair and reasonable agreement,” AMPTP spokesman Scott Rowe said. “An agreement is only possible if the Guild is committed to turning its focus to serious bargaining by engaging in full discussions of the issues with the companies and searching for reasonable compromises.”

Representatives of the AMPTP and WGA returned to the table for talks on Friday April 14.

If they are unable to come to terms, WGA leaders could authorize a walkout as early as May 2 at 12:01 am Pacific Time, according to the WGA.

“We sense a very high likelihood of a strike beginning in early May 2023,” said Rich Greenfield, a co-founder of LightShed Partners, a technology and media research firm in New York. “The television business has shifted dramatically and resetting economics between the WGA/AMPTP is no easy task.”

This is the first time since 2017 that the guild has voted on a strike authorization, although that year the two sides were able to reach a deal that averted a work stoppage.

The WGA previously went on strike in 2007 in a walkout that lasted 100 days and halted much of Hollywood production. At the time, members approved a strike authorization vote by a 90% margin.

Leaders of the Writers Guild of America secured a strong showing of support from its members on Monday, moving the union closer to a possible work stoppage that would disrupt Hollywood production and ripple across Southern California’s economy.

WGA members voted by an historic 98% margin (among 9,218 ballots cast) in favor of a strike authorization, which allows union leaders to call a walkout if they are unable to negotiate a new film and TV contract.

“You have expressed your collective strength, solidarity, and the demand for meaningful change in overwhelming numbers,” the WGA said in a statement to members. “Armed with this demonstration of unity and resolve, we will continue to work at the negotiating table to achieve a fair contract for all writers.”

The current three-year contract, which covers about 11,500 members, expires May 1.

The vote — held between April 11-17 — adds pressure to already high stakes negotiations between the Alliance of Motion Picture and Television Producers and the Writers Guild of America over pay and conditions.

The strong endorsement is likely to strengthen the leverage union leaders have in contract negotiations that have so far failed to yield much progress in talks.

The radical transformation of the TV business caused by the rise of streaming platforms has fueled much of the labor conflict.

Writers are seeking a package of compensation increases valued at nearly $600 million. That includes increases in minimum pay and higher residual payments from streaming, along with increased contributions to the union’s health and pension plans.

Writers argue that despite the streaming boom, their median pay has fallen in the last decade, citing a WGA report.

Complicating matters is that major studios such as Walt Disney Co., Warner Bros. Discovery and Netflix are facing their own economic pressures to slash costs in the face of rising debt levels, a reassessment of the streaming business and a possible recession.

In a statement, the AMPTP said the ratification vote was not a surprise.

“Our goal is, and continues to be, to reach a fair and reasonable agreement,” AMPTP spokesman Scott Rowe said. “An agreement is only possible if the Guild is committed to turning its focus to serious bargaining by engaging in full discussions of the issues with the companies and searching for reasonable compromises.”

Representatives of the AMPTP and WGA returned to the table for talks on Friday April 14.

If they are unable to come to terms, WGA leaders could authorize a walkout as early as May 2 at 12:01 am Pacific Time, according to the WGA.

“We sense a very high likelihood of a strike beginning in early May 2023,” said Rich Greenfield, a co-founder of LightShed Partners, a technology and media research firm in New York. “The television business has shifted dramatically and resetting economics between the WGA/AMPTP is no easy task.”

This is the first time since 2017 that the guild has voted on a strike authorization, although that year the two sides were able to reach a deal that averted a work stoppage.

The WGA previously went on strike in 2007 in a walkout that lasted 100 days and halted much of Hollywood production. At the time, members approved a strike authorization vote by a 90% margin.