Hollywood's Watershed Moment: A Chronicle of the Historic Industry Strike
SAG-AFTRA member outside of Nextflix Studios, 5808 Sunset Blvd, Los Angeles, California (Photo by Evan Mack)
It’s another day in sunny Los Angeles, California. The birds are chirping, the weather is sublime, but something is a bit off. Tinsel Town is in disarray. Movie studios across the vast metropolitan area have been filled with people. These people are holding picket signs. These picket signs fill up the street as far as the eye can see. What's going on? How did we get here? Well, at the time of this article being published SAG-AFTRA and more than 60,000 members entered their 117th day of one of the most meaningful strikes in the history of the industry. However, this isn’t the first time this has happened. Multiple shutdowns have occurred throughout Hollywood's history and each for different reasons.
Creature Actors outside of Warner Bros. Studios 3400 Warner Blvd, Burbank, CA (Photo by Evan Mack)
The Origin of the Issue
On March 7th, 2023, the Writers Guild of America (WGA) announced that around 99% of its members voted in favor of certain stipulations that include calls for increased compensation, staffing requirements, and most importantly protection from artificial intelligence job interference. 117 days later, the strike has reached a fever pitch with both sides dug in on fundamental compensation and what each side feels is fair for both. On July 13th, 2023, SAG-AFTRA joined up with the WGA to start their strike to stand in solidarity with each other. The financial implications of the strike speak to the state of the entertainment industry. According to Todd Holmes, a California State University Professor the strike has cost the California economy around $3 billion. The industry is at a standstill but that hasn’t stopped people of all levels from showing their support. "I’m just here to offer support. I’m not here to draw unnecessary attention to myself. Fair compensation is what this is all about,” says actor Jack Black.
Actor Jack Black outside of Netflix Studios 5808 Sunset Blvd, Los Angeles, California holding a picket sign (Photo by Evan Mack)
SAG-AFTRA members standing in solidarity in front of Walt Disney Studios, 3400 Warner Blvd Burbank, California (Photo by Evan Mack)
Hollywood Strikes Throughout History
To understand the history of Hollywood strikes we must first delve into the past with notable instances such as the 1945 Hollywood Strike, the 1980 Hollywood Strike, and the 2007-2008 Writers Guild of America Strike. Each strike brought its unique challenges and demands, shedding light on the complex dynamics between workers and the entertainment industry.
Stunt performer standing on the corner near Warner Bros. Studios lot, 3400 Warner Blvd Burbank, California (Photo by Evan Mack)
The 1945 Hollywood Strike
One of the bloodiest and most impactful strikes in the history of the industry was amplified on a tumultuous day in front of Warner Bros. studios on October 5th, 1945. “Nearly 60 percent of all production was blacked out yesterday, and 12,000 film workers made idle, as members of the Screen Set Designers, Decorators, and Illustrators ‘hit the bricks’ in front of all major studios, and joined by cardholders in a dozen top industry crafts, precipitated Hollywood’s worst labor tie up in nearly a decade,” read a front-page Hollywood Reporter story on March 13, 1945. The core of the 1945 Hollywood strike stemmed from labor disagreements and a call for improved working conditions, fair wages, and acknowledgment of the artisans' roles in the movie sector. The pivotal movement was initiated by the Conference of Studio Unions (CSU), uniting unions representing set decorators, illustrators, and other skilled workers in Hollywood. Their collective aim was to secure elevated compensation, enhanced work environments, and acknowledgment for their specialized expertise. Ultimately common ground was found on this labor issue in October of 1947. The agreement included improved wages, better working conditions, and a degree of recognition for the craftspeople’s contributions to the film industry.
The 1980 Hollywood Strike
In late July 1980, SAG-AFTRA initiated a strike advocating for actors' residual payments, responding to the emergence of home entertainment platforms like videocassettes and pay cable, as reported by Backstage. This three-month strike was significant because of the advent of technological advancements in how people consume content. The strike cost Hollywood producers around $40 million per week. The emergence of new technology was the cause of descent in Hollywood during this stoppage in the 1980s. Despite the back and forth between the industry and union workers, common ground was eventually found later in the fall. On October 23rd, 1980, an initial agreement regarding the video cassette matter was reached. Apart from a salary increase, actors were set to gain 4.5% of the earnings generated from pay-per-view and sales of video cassettes and disks. As a compromise acknowledging the early stages of the video cassette industry, the percentage of cassettes and disks would only be applicable after 100,000 copies were sold, a concession made by the actors.
The Writers Guild Strike of 2007-2008
Another significant strike happened on November 5th, 2007, when 12,000 film and television screenwriters of the American labor unions, Writers Guild of America, East (WGAE), and Writers Guild of America West (WGAW) went on strike seeking an increased share of revenue based on DVD sales and residuals over new media. This strike was a revolution in the regard of its timing. The union anticipated the growth of streaming and proceeded to preemptively negotiate terms before this new form of distribution was introduced. Patric Verrone, President of the Writers Guild of America, West (WGAW) said, “We were able to communicate to our membership that something was coming—we didn’t have the foresight to say it will be subscription or ad-based or pay-as-you-go, we just knew the industry was going to do something to make a lot of money with it.” During 2007-08, writers achieved a groundbreaking victory by gaining control over new media, setting a significant precedent in the industry. This win laid the foundation for negotiating the usage of streaming content long before the technology became a dominant force in the distribution network.
The Hollywood Strike of 2023
The theme feels the same, however, this moment and the energy on the front lines feel different this time around. With each change and progression in technology, there comes a moment in time when fair compensation is a hot-button issue. If you find yourself down at the picket lines you will find A-Listers to stunt workers, from voice actors to crew members. Everyone is in the trenches playing music, dancing, chanting, and standing in solidarity with one another. The pulse of the industry is racing, and the morale of the protesters is at an all-time high. Throughout different points in history, the ongoing theme of fair compensation seems to be centered on the increase in revenue through different creations of new technology. The disconnect between the unions and Hollywood executives is trying to establish what is fair and what is owed to each representative of the union. Actors feel that the revenue being generated doesn’t help members of the union survive in an expensive, demanding, and unjust system. "Well, it’s just about being fair. And, you know this industry makes a lot of money, and sometimes those who are essential ingredients are not rewarded at all. And it's gotten to a point where they can't even have a family for themselves. It's so rare. And so, we're just looking for a little bit of equal disbursement of the funds so that everyone can live,” says actor Jimmi Simpson of the famed television show Westworld.
Actress Angela Sarafyan (Westworld), a union member, and actor Jimmi Simpson posing for a picture on the picket lines at Walt Disney Studios, 3400 Warner Blvd Burbank, California. (Photo by Evan Mack)
Standing in solidarity has been the benchmark of the entire strike. People standing arm and arm with one another from the biggest stars to the marginalized talent, the connection is palpable and has been the driving force for the union to gain the attention of the powers at be. “That's really our main mission, my main mission and I think also protecting the future of our craft and making sure that, you know, we aren't hiring extras for $300 a day and taking their identities for the rest of their lives like it's you know, it feels like it's pretty cut and dry, right and wrong,” says actor Justine Lupe of the hit show Succession. Writers are strongly advocating for increased compensation, citing the adverse impact of the streaming era on their earnings. In the realm of television, the traditional model of payment per episode, once based on lengthy seasons of 22 or more installments for broadcast series, has shifted significantly for streaming platforms, with series commonly featuring shorter runs of eight to 13 episodes.
“The fact that only about 86% of SAG members don’t have health insurance because they can’t meet that minimum. And that minimum is way less than the minimum wage in a year. It makes no sense, you know, so these deals would hopefully tighten that gap so that more people could get health insurance, more people could make a living wage and people are not relying on this feeding their only meal a day.”
A crucial concern highlighted by union workers is the disparity in residuals or royalties for streaming versus broadcast shows. These earnings, which continue to provide income to writers, actors, and other creatives post-debut, are notably lower for streaming content compared to reruns aired on cable or syndication from broadcast shows. This discrepancy stems from the early days of streaming, where lower minimums were established, compounded by the exclusivity agreements imposed by streamers that restrict wider show distribution.
The guild's demands underscore a call for standardized compensation in screenwriting, irrespective of a film's release format be it theatrical or streaming. Additionally, they are advocating for increased studio contributions to pension plans and health funds, aligning with the changing landscape of the entertainment industry.
Artificial Intelligence
That change has been caused by the rise in Artificial intelligence. The main issue on the mind of each member of the union is being replaced by a computer-generated image and not fairly compensated for their likeness. “Well, their end game is they don't have to pay people. That's their end goal. They want to have their few A-list that they can have to lead a movie and then everything else can be generated. So, they're not paying for craft services, they're not paying for trailers, they're not paying for crews. They're not paying for costumes; they're not paying for props. They're not paying for sets to be built. They're not paying for lights. They don't have anything else to pay for. So that's their end game. It's just money. Everything is about the bottom line,” says actor Jeri Ryan from the classic television show Star Trek: Voyager. If you have a moment to speak with someone in the union, they all share the same sentiment. This fight isn’t about getting more, it’s about getting what is fair. The union is stronger than ever and will not waiver until the playing field is at a point where all can benefit from the bottom to the top.
Unsung Heroes
One thing that might get lost in the shuffle is the countless number of volunteers and people using the spare time they have to support the cause. People are out on the front lines keeping people hydrated, walking them safely across dangerous streets, feeding them, playing music, and even cutting people's hair for free. “I’m just out here doing my part. We have so many people out there who can’t get work. So how can they pay for a haircut if they can’t pay for food? I’m just here to offer my support for anyone who needs it,” says Anthony Bertram owner and operator of The Actor’s Cut. This barber shop service has been posted up at various locations during the union strike cutting anyone’s hair that happens to cross his path.
Actor and union member Anthony Bertram cutting union members hair on the picket lines at Walt Disney Studios, 3400 Warner Blvd Burbank, California. (Photo by Evan Mack)
“There will not be crews, there will not be sets to build. There will not be makeup needed. There will not be drivers needed to drive anywhere. So I think we all realize that this is the moment that we have to put our foot down and stand firm. ”
History in the Making
This moment will determine the future of the industry. As the technology moves and evolves, so must we all. There is a fundamental issue that is driving the frustration throughout the hallowed grounds of Hollywood that must be sorted through. Artificial intelligence is threatening to topple the entire industry, and if allowed to do so will alter the industry forever. What's next? Only time will tell. But as the days pass Hollywood remains at a standstill, the union is holding firm, and all we can do is watch, wait, and see how it all shakes out.
