Writers Guild of America Reach Agreement with Hollywood Writers

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Hollywood television and movie writers came to a contract deal with major studios and networks at the last minute on Tuesday, averting another strike.

The Alliance of Motion Picture and Television Producers (AMPTP) and The Writers Guild of America (WGA) announced that the parties came to an agreement on a three-year accord just hours before the strike was slated to start.

In a memo to its 9,000 members, WGA said they would earn $130 million more over the life of the agreement. The tentative deal will cover members for three years.

The deal addresses parental leave, healthcare issues, overtime payments and other points.

The Guild’s “pencils down” policy would have meant that shows that require a quick-turnaround, like late-night talk shows and soap operas, would have been without new material had the parties not come to an agreement.

Late-night talk shows would have been forced to run reruns had picketing started. Eventually, feature films and scripted series would have been impacted.

Negotiations for the deal began on March 13, and broke twice.

The Guild said it made “unprecedented gains” on compensation for shorter TV seasons, as comedy and drama episodes have fallen from 22 per season to less than a dozen.

Writers were previously paid per episode, and saw a 23% decline in pay over the last three years as a result. Television royalties will also increase by 15%, says the Guild.

Media analysts projected that a strike would have sent an even larger percentage of audiences to streaming services like Amazon, Netflix and Hulu.

Moody’s Investors Service says the cost of the agreement to major media conglomerates would be between $100 million and $125 million for each year. That figure, they say, is not likely to “present a considerable financial burden” on any of the companies.

Writers went on strike ten years ago, which cost the California economy $2.1 billion, according to estimates.

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