Late Sunday night, a significant development for the entertainment industry, the Writers Guild of America (WGA) reached a tentative agreement with the Alliance of Motion Picture and Television Producers (AMPTP) on a new three-year Minimum Basic Agreement.
Following this milestone, the Negotiating Committee, WGAE Council, and WGAW Board have all voted unanimously to recommend the agreement.
The tentative agreement is now set to move forward for ratification by the memberships of both Guilds. Eligible voters will receive ballots and related materials for the vote, scheduled to take place from October 2nd through October 9th.
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In a unanimous decision, the WGAE Council and WGAW Board have also taken steps to lift the restraining order and officially end the strike. This action will come into effect at 12:01 am PT/2:01 am CST/3:01 am ET on Wednesday, September 27th. The move allows writers to return to work during the ratification process while preserving the membership’s right to make the final determination on contract approval.
Further details regarding the ratified agreement and its impact on writers’ contracts and compensation will be available after the membership ratification vote. The entertainment industry, writers, and viewers alike await the outcome of this vote, which will have significant implications for the future of media and entertainment.
REELated:
Below is a comprehensive summary of the major terms and updates included in the 2023 MBA Agreement:
1. Term of Agreement
- The 2023 MBA Agreement is set to be in effect from September 25, 2023, through May 1, 2026.
2. Minimums Increases
- A series of minimum wage increases are outlined, with most MBA minimums seeing gradual increments. These increases will be 5% upon contract ratification, 4% on May 2, 2024, and 3.5% on May 2, 2025. Several exceptions apply, with some rates increasing annually by 3% or remaining unchanged.
3. Increased Health and Pension Contribution Rate
- A notable change is the increase in Health Fund contributions, with a 0.5% rise in the second year of the agreement, taking the contribution rate from 11.5% to 12%. The Guild also reserves the right to allocate an additional 0.5% in both the second and third years towards either the Health Fund or the Pension Plan.
4. Increased Health and Pension Contributions for Writing Teams
- To ensure fair compensation, contributions for each writer on a writing team will be based on the full weekly minimum instead of the previous half rate. This change also extends to pension and health contributions.
5. Artificial Intelligence (AI)
- The 2023 MBA Agreement addresses the use of artificial intelligence (AI) in the industry. AI is explicitly prohibited from writing or rewriting literary material. AI-generated content is not considered source material, preventing it from undermining writer credits or separated rights. Writers have the option to use AI, provided it’s with the company’s consent, but companies cannot mandate its use.
6. Improved Terms for Screenwriter Employment
- Several provisions improve the terms for screenwriters, including a guaranteed second step for certain screenplay projects, accelerated payment structures for flat deals, and increased compensation for streaming features.
7. Improved Terms in High Budget Subscription Video on Demand (HBSVOD)
- Notable changes in this category include substantial increases in foreign streaming residuals, a viewership-based streaming bonus, and a commitment to streaming data transparency.
8. Minimum Terms for Advertising-Supported Streaming (AVOD)
- High-budget programs on ad-supported streaming services will now receive compensation terms equivalent to those on subscription streaming services, along with span protections and residuals for reuse.
9. Increased Compensation for Series Employment: Weekly Pay and Staff Writer Script Fees
- Minimum weekly rates for staff writers and story editors/executive story editors will rise according to overall minimum increases. A new writer-producer tier is introduced with higher minimum weekly rates.
10. Staffing and Duration Provisions for Episodic Series
- Provisions for development rooms and regular writers’ rooms are established, setting minimum hiring requirements and employment duration.
11. Improved Options, Exclusivity, and Span Protections
- These changes include adjustments to the salary limit for options and exclusivity protections and expanded span protections to cover more writers and limited series.
12. Appendix A Series Made for Subscription Streaming Services
- Specific provisions are detailed for high-budget non-dramatic programs on subscription streaming services.
13. Showrunner Training Program
- The Showrunner Training Program will receive an annual funding renewal of $250,000.
14. Additional Arbitrators
- A panel of arbitrators in Los Angeles for MBA claims will see replacements for three arbitrators.
15. Tri-Guild Audit Program
- Funding for Tri-Guild auditing of residuals payments is set to continue for the duration of the agreement.
16. Other Changes (Company Proposals)
- Various miscellaneous changes include adjustments in exhibition terms, interest requirements, and credit provisions.
Full details and contract language can be found in the complete MOA document, which takes precedence in the case of any inconsistency. The provisions of the 2020 MBA remain unchanged unless modified during the 2023 negotiations.
While the Guild moves back into the framework of writing, SAG-AFTRA remains on strike. It’s expected that union leaders will return to the bargaining table soon with the AMPTP.
For Reel 360 News’ full strike coverage, click here.
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