👀 Ones to watch: The MOST undervalued stocks to buy right nowSee Undervalued Stocks

Hollywood directors ratify labor pact as writers keep picketing

Published 06/26/2023, 04:51 AM
Updated 06/26/2023, 04:55 AM
© Reuters. FILE PHOTO: People stand above the Hollywood sign under a cloudy sky in Los Angeles, California, U.S., May 31, 2023. REUTERS/Mike Blake/File Photo
DIS
-
NFLX
-

By Lisa Richwine and Steve Gorman

LOS ANGELES (Reuters) - Film and television directors voted overwhelmingly to ratify a new three-year labor contract with major Hollywood studios on Friday, averting a second work stoppage that would have added to upheaval caused by an ongoing writers' strike.

The Directors Guild of America (DGA) said 87% of those voting supported the deal with the Alliance of Motion Picture and Television Producers (AMPTP), a group that represents Walt Disney (NYSE:DIS) Co, Netflix Inc (NASDAQ:NFLX) and other major studios.

The DGA represents 19,000 directors, assistant directors and others who work on film and TV productions.

The 41% turnout level, with 6,728 members out of 16,321 eligible voters casting ballots, exceeded any prior DGA ratification vote, the union said on its website.

In the new labor pact, members secured base wage increases starting at 5% the first year, an increase in residual payments from streaming, and a guarantee that generative artificial intelligence (AI) "cannot replace the duties performed by members."

AI also has emerged as a major concern of writers and actors, who see their jobs as especially vulnerable to the new technology.

The Writers Guild of America (WGA) has been on strike since May 2, shutting down several TV and film projects such as a new season of "Stranger Things" and a "Game of Thrones" spinoff.

There are no new contract talks scheduled between the WGA and studios, whose dispute has largely centered on changes to show business brought about by the streaming boom.

During the last WGA strike in 2007 and 2008, a studio deal with the DGA prompted writers to head back to the bargaining table. Striking writers have insisted that the directors' latest deal will not influence their position this time.

© Reuters. FILE PHOTO: People stand above the Hollywood sign under a cloudy sky in Los Angeles, California, U.S., May 31, 2023. REUTERS/Mike Blake/File Photo

Hollywood actors, meanwhile, are in the middle of their own labor talks with studios. Members of the SAG-AFTRA actors union have given their negotiators the power to call a strike if they cannot agree on a new contract by June 30.

(This story has been refiled to correct a typographical error in paragraph 4)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.