After less than two weeks, the latest negotiations between SAG-AFTRA and the studios and streamers have broken down and been “suspended,” according to the AMPTP.
“After meaningful conversations, it is clear that the gap between the AMPTP and SAG-AFTRA is too great, and conversations are no longer moving us in a productive direction,” the Carol Lombardini-led group said n a statement late Wednesday after what was described to Deadline by one source as “much rockier than usual” talks.
Read the full AMPTP statement below
As Deadline reported today and over the last week of deliberations between the parties, the main stumbling block to a deal seems to be SAG-AFTRA’s desire for revenue sharing from successful streaming shows. Terming the profit split demand, which is estimated to make up around 2% of potential profits, an “untenable economic burden,” the studio CEO-led negotiating team have valued the proposal costing them over $2.4 billion over the course of a new three-year contract or “more than $800 million per year.”
Essentially a non-starter with the studios from the moment SAG-AFTRA first put revenue sharing on the table back in the early summer, the proposal has proven intractable for the parties and one of the initiators of the guild going out on strike itself on July 14.
“We hope that SAG-AFTRA will reconsider and return to productive negotiations soon,” the AMPTP added.
As it has in previous negotiation cratering instances with the WGA earlier this year, the AMPTP tonight listed off areas such as wage, AI protections, “percentage increase in minimums areas” and more where it considered to have offered the actors hefty increases. “On common issues, such as general wage increases, High-Budget SVOD residuals, and viewership bonuses, the AMPTP offered the same terms that were ratified by the DGA and WGA. Yet SAG-AFTRA rejected these,” the AMPTP declared tonight on the 91st day of SAG-AFTRA’s strike.
While SAG-AFTRA have said nothing publicly yet, the AMPTP’s statement Wednesday night came hours after talks at the union’s Miracle Mile headquarters had ended for the day.
The sharp statement also came not long after NBCUniversal chair Donna Langley, who has been one of the CEO Gang of Four directly involved in bargaining with the actors guild, had finished her long scheduled appearance at the Bloomberg conference in Hollywood tonight and left the event.
Netflix co-CEO Ted Sarandos is supposed to be at the conference mid-morning Thursday.
Like they did for the final days of the last and successful round of talks with the Writers Guild of America late last month Langley and Sarandos have been joined in bargaining with SAG-AFTRA since October 2 by Warner Bros Discovery’s David Zaslav and Disney’s Bob Iger in attendance. With Lombardini by their side, the CEO Gang of Four have been countered across the table by SAG-AFTRA president Fran Drescher, chief negotiator Duncan Crabtree-Ireland and other guild leaders.
Similar in scope and tone to when barely resumed talks with the scribes fell apart in mid-August, today’s suspension of negotiations with the 160,000-strong actors guild came on the same day a heavily scorned letter from the Directors Guild of America went out to its member hailing the “extraordinary gains” of the agreement the DGA made with studios back in June. A deal at the time that was widely seen in studio circles as almost an assurance of preventing a SAG-AFTRA strike – something the pattern bargaining addicted AMPTP seemed rendered almost institutionally catatonic by for several weeks.
Read the full AMPTP statement here:
Negotiations between the AMPTP and SAG-AFTRA have been suspended after SAG-AFTRA presented its most recent proposal on October 11. After meaningful conversations, it is clear that the gap between the AMPTP and SAG-AFTRA is too great, and conversations are no longer moving us in a productive direction.
SAG-AFTRA’s current offer included what it characterized as a viewership bonus that, by itself, would cost more than $800 million per year – which would create an untenable economic burden. SAG-AFTRA presented few, if any, moves on the numerous remaining open items.
Member company executives and AMPTP representatives met with SAG-AFTRA for five days over the past eight workdays. During that time period, AMPTP extended offers including:
A first-of-its-kind success-based residual for High-Budget SVOD productions.
The highest percentage increase in minimums in 35 years, which would generate an additional $717 million in wages and $177 million in contributions to the Pension and Health Plans during the contract term.
A 58% increase in salaries for major role (guest star) performers wages on High Budget SVOD Programs.
A 76% increase in High Budget SVOD foreign residuals for the four largest streaming services.
Substantial increases in pension and health contribution caps, ranging from 22-33%, which will make it easier for performers to qualify for additional periods of health coverage and earn years of service toward a pension.
Meeting nearly all of the Union’s demands on casting, including guardrails around self-tapes, options for virtual and in-person auditions, and accommodations to performers with disabilities.
Compensation adjustments of 25% for singers who dance and dancers who sing on camera in the same session, whether in rehearsal or photography, representing a 30% increase over current wages.
Wage increases for stunt coordinators of 10% in the first year and outsized increases in years two and three, and giving television stunt coordinators fixed residuals for the first time ever.
Substantial improvements in relocation allowance – a 200% increase if the performer is on an overnight location for 6 months. The relocation allowance would now be payable for every season in which the performer is on an overnight location (versus a current limit of two to four seasons).
Substantial increases in Schedule F money breaks of between 11% and 41%. The 41% increase applies to one-hour television programs, which covers the largest number of productions done under the Agreement.
A 25% increase in span money breaks.
Covering performance capture work under the Agreement, which the Union has sought for 20 years.
On AI protections:
Advance consent from the performer and background actor to create and use Digital Replicas;
No Digital Replica of the performer can be used without the performer’s written consent and description of the intended use in the film;
Prohibition of later use of that Replica, unless performer specifically consents to that new use and is paid for it; and,
A “Digital Alteration” that would change the nature of an actor’s performance in a role is not permitted without informing the performer of the intended alteration and securing the performer’s consent.
On common issues, such as general wage increases, High-Budget SVOD residuals, and viewership bonuses, the AMPTP offered the same terms that were ratified by the DGA and WGA. Yet SAG-AFTRA rejected these.
We hope that SAG-AFTRA will reconsider and return to productive negotiations soon.
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