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Hollywood Studios Reach New Labor Agreement, Avoiding Strike

Hollywood Studios Reach New Labor Agreement, Avoiding Strike

Hollywood studios reached a new labor agreement with one of the industry’s most powerful unions, settling differences over work conditions and pay and averting a potentially disastrous halt to film and TV production across the country.

A strike would have roiled an industry that’s still reeling from Covid-related closures and health restrictions. Netflix Inc. and Walt Disney Co. have attributed weaker-than-expected growth in online subscriptions to the challenges of getting new programming.

“We went toe to toe with some of the richest and most powerful entertainment and tech companies in the world, and we have now reached an agreement,” Matthew Loeb, president of the International Alliance of Theatrical Stage Employees, said in a statement. “This is a Hollywood ending.”

The union, which represents thousands of art directors, camera operators and editors, has been negotiating with the Alliance of Motion Picture and Television Producers, whose members include major studios including Disney, Netflix and Amazon.com Inc.

The agreement covered areas including:

  • Higher wages for the lowest-paid earners, as well as for those in streaming
  • Retroactive wage increases of 3% yearly
  • Higher meal period penalties
  • Daily rest periods of 10 hours
  • Weekend rest periods of 54 hours
  • Addition of Martin Luther King Jr’s Birthday holiday
  • Adoption of diversity, equity and inclusion initiatives

Negotiations are still ongoing for unions in production centers in New Mexico, New York, Illinois, Georgia and Louisiana, according to the statement.

In its 128 years, IATSE has never gone on a nationwide strike. But many workers have faced arduous production schedules that kept them working well into the night and over weekends. IATSE sought shorter hours in a new contract as well as more revenue from streaming services, which were able to pay lower wages under the old contract.

Most of the 60,000 IATSE members are based in Los Angeles and fill behind-the-scenes roles. Three of its chapters are actually national in scope, so a strike would have stopped work across the country, potentially affecting almost 1 million jobs tied to television and film production.

©2021 Bloomberg L.P.