The Writers Guild of America (WGA), SAG-AFTRA, and the Directors Guild of America (DGA) have each reached tentative four-year collective bargaining agreements with the Alliance of Motion Picture and Television Producers (AMPTP).
These agreements, which cover issues including artificial intelligence, health plan funding, and streaming residuals, are subject to ratification by each union's membership. The negotiations occurred against a backdrop of ongoing industry contraction, prior labor strikes, and an internal labor dispute within the WGA West.
WGA Tentative Agreement
Agreement Summary
The WGA and the AMPTP reached a tentative agreement on a four-year contract for the 2026 Minimum Basic Agreement (MBA) on April 12, 2025. The WGA Negotiating Committee unanimously approved the deal, which was also confirmed by the AMPTP. The WGA West board and the WGA East council unanimously approved the agreement on April 15.
The contract extends for four years, one year longer than the typical three-term used in prior agreements. The AMPTP sought the longer term for increased labor stability following the 2023 strikes.
Union members will vote on ratification from April 16 to April 24.
Health Plan Provisions
The agreement includes a record $321 million contribution from the AMPTP to the WGA health plan. This infusion, described as the largest single increase to this benefit, aims to address a cumulative deficit of $122 million in 2023 and 2024 attributed to industry contraction and healthcare inflation.
Key changes include:
- Employer Contribution Rate: The rate on reported earnings will increase from 13% to 16.75%.
- Contribution Caps: The cap on earnings that trigger health contributions will increase. For example, the cap for screen projects will rise from $250,000 to $400,000 by May 2, 2028.
- Paid Parental Leave Transfer: An additional $25 million will be transferred from the Paid Parental Leave fund to the health plan. The WGA stated the Paid Parental Leave fund will retain sufficient resources.
- Member Premiums (Effective 2027): Active plan users will pay $75 per month for individual coverage and $200 for family coverage. Previously, no monthly premiums were charged.
- Deductibles & Out-of-Pocket Costs (Effective 2027): Deductibles will increase to $500 for individuals and $1,500 for families. Out-of-pocket maximums will increase to $2,500 per person.
- Earnings Threshold (Effective 2027): The earnings threshold required to qualify for coverage will increase from $46,759 to $53,773.
- Extended Coverage: The system for accumulating points to remain eligible for coverage while not working will be reformed. A new requirement of $200,000 in covered earnings per year to qualify for points will slow the rate of accumulation.
- New Health Plan Option: A lower-cost health option with a narrower provider network, Centivo, will be introduced.
Compensation and Residuals
The agreement includes several changes to writer compensation:
- Minimum Rates: Most minimum payments will increase by 1.5% in the first year and 3% in the second, third, and fourth years.
- Streaming Residuals: The residual base for domestic and foreign high-budget streaming projects will increase by 2.5% in 2027 and by another 2.5% in 2029.
- Foreign Residuals: Major streaming platforms (Netflix, Amazon, Disney+) will increase foreign residual payments by 6% in the first year, with subsequent increases tied to the residual base.
- Streaming Success Bonus: The bonus for shows viewed by 20% of a streamer's domestic subscribers will increase from 50% to 75% of the domestic and foreign residual.
- Screenwriter Payments: "Second-step" payments for a first-draft screenplay will increase from 200% to 225% of the applicable minimum. A new minimum payment for "page-one" rewrites has been established.
- TV Writer Provisions (Effective 2027): A new rule prevents "if/come" deals from being exclusive until an initial pilot fee is paid. Format fees will increase by 42%.
Artificial Intelligence (AI) Provisions
- The agreement requires companies to provide written notice to the WGA if they license scripts, or projects based on those scripts, to train commercial generative AI systems.
- The WGA retains the right to request discussions regarding such licensing and potential writer compensation.
- Direct compensation for the use of writers' work to create generative AI outputs was not included in the deal.
Other Provisions
- "Free Work": Provisions are included to discourage unpaid work. Companies are required to remind producers that only the company can request a rewrite. The agreement prevents companies from holding TV pilot writers exclusively or in "first position" without payment.
- TV Staffing Minimums: The agreement preserves the TV staffing minimums established in the 2023 contract.
SAG-AFTRA Tentative Agreement
SAG-AFTRA reached a tentative four-year agreement with the AMPTP on a successor contract to the 2023 SAG-AFTRA TV/Theatrical Contracts. The agreement covers motion pictures, scripted primetime dramatic television, streaming content, and new media.
Key Terms
- Term: The contract is for four years.
- Pension Fund: The agreement includes a "sizable" contribution to the SAG-AFTRA pension fund.
- AI Protections: The agreement includes provisions related to artificial intelligence. SAG-AFTRA executive director Duncan Crabtree-Ireland had previously identified AI protections as a priority.
Negotiation Context
- Negotiations began on February 9, 2025, recessed on March 15, and resumed on April 27 before concluding on May 2.
- The pause in talks was intended to allow the WGA to conclude its bargaining.
- An internal source described the negotiations as "congenial and collaborative."
Ratification Process
The tentative agreement is subject to review by SAG-AFTRA's national board. Final ratification by union members has not been scheduled. Specific terms have not been disclosed pending the board's review.
DGA Tentative Agreement
The Directors Guild of America reached a tentative four-year agreement with the AMPTP. The current contract was set to expire on June 30.
Key Terms
- Term: The contract is for four years.
- Limits on Non-Career Directors: The deal includes a provision limiting actors and other crew members from directing episodes on series where they are already employed in other capacities. This aims to preserve directing slots for career directors.
- Health Plan: Studios will increase contributions to the health plan in line with health inflation. The DGA agreed to scale back benefits, including imposing monthly premiums. Full changes will be determined by plan trustees.
- Artificial Intelligence: The agreement stipulates that footage generated by AI remains under a director's control. It also mandates notice of AI training and requires transparency about AI use. A new employer-funded program will help directors build AI skills.
- Overseas Productions: A committee will study the application of the DGA contract outside North America. Studios agreed to have top executives participate in lobbying for a federal tax incentive to bring productions back from overseas.
Ratification Process
The four-year contract requires ratification by DGA membership. The DGA's National Board will review the agreement, after which details will be released to members for ratification.
WGA West Internal Staff Union Strike
The WGA West is currently facing an ongoing strike by its own staff union, which initiated a work stoppage in February 2025.
Strike Details
- Approximately 100 out of 150 staff members, represented by the Pacific Northwest Staff Union (PNWSU), began striking over allegations of unfair labor practices against WGA West management.
- The staff union alleges "bad faith bargaining," including surveillance of workers for union activity, termination of union supporters, and an unwillingness to reach an agreement on core issues.
- In August 2024, the staff union filed an Unfair Labor Practice (ULP) charge against WGA West with the National Labor Relations Board, related to the alleged unlawful termination of an organizing committee member.
WGA West Response
- A WGA West spokesperson stated that the Guild respects the staff union's right to strike and will continue to bargain in good faith.
- WGA West has denied the allegations, stating it has offered comprehensive proposals during 19 negotiating sessions since September 2024 and that the ULP claims lack merit.
Impact of Strike
- The WGA West headquarters was closed to the public and members.
- Upcoming guild events, including meetings to discuss WGA bargaining priorities for AMPTP talks, were cancelled.
- The WGA West canceled its annual Los Angeles awards ceremony, originally scheduled for March 8, 2025.
- Striking WGAW staff were informed that their health insurance plans would be terminated effective April 1, 2025.
- The WGA West executive director has met with the staff union's leadership, outlining a path to a deal based on management's March 11 proposal, with some flexibility for negotiation.