Writers Guild strike conditions benefits entertainment industry

Since April 25, movie and television writers have been striking in Los Angeles in pursuit of increased wages and improved working conditions. The main disagreement in negotiations between the Writers Guild and the Alliance of Motion Picture and Television Producers (AMPTP) is the standard working hours for writers. Photo courtesy of Deadline.

By Sofia Williams

Editor-in-chief

Movie and television writers have been striking since April 25 in response to the expiration of their three-year contract, causing the interruption of the 15-year labor peace between the Writers Guild of America and the Alliance of Motion Picture and Television Producers (AMPTP). The Writers Guild Strike advocates for a necessary solution to job insecurity among artists and writers in Hollywood. The union’s proposed provisions would ensure better pay and job security to writers, appease audiences, and improve the entertainment industry’s financial stability, allowing it to continue to thrive.

After four weeks of picketing, writers organized a 200,000-person rally outside the Los Angeles Convention Center to demonstrate their solidarity. The Writers Guild, or the Movie and Television Writers’ Union, and the AMPTP, which represents Hollywood companies such as Amazon, Netflix, Universal, and Paramount, are required to hold negotiations every three years. According to the New York Times, the main topic of disagreement between the Writers Guild and the AMPTP is the standard working hours for writers.

Currently, the AMPTP pays writers only for when they are needed on set, causing sporadic hours and decreasing pay. The AMPTP represents companies like Netflix, Amazon, Universal, and Paramount, and remains in negotiations with the Writers Guild to this day. Photo courtesy of the Seattle Times

The Writers Guild advocates for a fixed number of hours for writers on-set, whether they are needed or not, according to the New York Times. However, the AMPTP aims to replicate past precedents, in which writers were called to work only during the times they were needed by the producers of their project. However, according to the New York Times, this practice creates a “gig economy,” which reduces the wages of screenwriters by preventing them from working full-time. Despite the short-term savings that reducing writers’ wages affords Hollywood companies, the long-term ramifications would be substantial; if writers continue to strike, the financial ramifications for the AMPTP would be great, per the New York Times.

It is important that the AMPTP consider the salary terms of the Writers Guild; according to the Employee Job Satisfaction and Engagement Report from the Society for Human Resource Management, job security and increased wages allow writers to produce content at a higher quality and faster rate. According to CNBC, 68% percent of workers making more than $150,000 per year reported being “very satisfied” with their current job, while only 40% of people making under $50,000 per year said the same. This demonstrates that the more money workers make, the more satisfied they are with their job.

The Writers Guild overwhelmingly approved a list of demands on March 7, 2023, which were later put to negotiation with the AMPTP. The main demands enumerated in the list were calls for increased compensation for streaming and the eradication of “mini-rooms,” or exclusive writers’ groups used to create a series before it’s produced. Photo courtesy of the LA Times

According to the International Journal of Environmental Research and Public Health, there is a strong positive correlation between job satisfaction and job performance. If job satisfaction were higher among movie and television writers, the content produced would improve, contributing to higher audience ratings and higher revenue for the entertainment industry.

A previous Writers Guild Strike, which occurred in 2007, led to a decrease in quality of many television programs and movies that were rushed into production, subsequently causing a drop in audience ratings, according to the New York Times. A similar situation could occur if the current strike persists, affecting the scheduled releases of next year’s movies and TV shows and threatening the success of late-night TV such as ‘‘SNL” and “The Late Show.’’ If the AMPTP were to accept the terms of the Writers Guild, the entertainment industry could return to its regularly scheduled releases, preserving audience ratings to benefit both the industry and the writers.

The Writers Guild re-negotiates a basic contract agreement every three years. Because the union’s prior contract expired on May 1, 2023, they are required to create new terms for the upcoming three-year period. Photo courtesy of wga.org

According to the LA Times, the Writers Guild strike is projected to cost the Los Angeles economy approximately $3 billion in lost revenue. The proposals offered by the Writers Guild would cost the AMPTP approximately $429 million per year, according to the Writers Guild of America West. Therefore, the calls for improved working conditions and higher wages from the Writers Guild would both save their employers money and contribute to the improvement of content, improving audience satisfaction to cause an increase in revenue.

As the Writers Guild entered its sixth week of striking, the Directors Guild of America, a union which represents thousands of movie and television directors, reached a tentative agreement with Hollywood studios on June 4. While the resolution of negotiations between the Directors Guild and the AMPTP places less financial strain on Hollywood industries, according to the New York Times, the impending Actors Guild negotiations and the Writers Guild strike could tip the scale between successful negotiations and a halt to movie and television production for several months. If the AMPTP were to accept the terms of the Writers Guild, this balance would resolve itself favorably, allowing the entertainment industry to regain stability and continue to produce content.

On May 26, the Writers Guild organized a rally in Downtown Los Angeles, of which over 200,000 people were in attendance. The union has been striking for the past several weeks in order to place financial pressure on the AMPTP. Photo courtesy of KTLA

While media companies have had to lay off thousands of employees in recent months due to pullbacks from Wall Street investors in streaming services, the financial gain prompted by the acceptance of the Writers Guild’s terms would pose greater benefits to such corporations than would allowing a strike to continue. The improved audience satisfaction that would occur as a result of the production of more consistent and high-quality content could likely offset the financial strain placed on media companies by reduced investments in streaming.

The Writers Guild’s advocacy for better wages and working hours represents a valid concern that, if addressed, would contribute to the betterment of the entertainment industry by improving worker and audience satisfaction while posing significant financial gain to media companies.