Directors make a deal with Hollywood studios – level 3

27-06-2023 15:00

Film and television directors overwhelmingly voted to ratify a new three-year labor contract with major Hollywood studios to avoid a second work stoppage due to an ongoing writers’ strike.

The Directors Guild of America (DGA) announced that 87% of voters supported the deal with the Alliance of Motion Picture and Television Producers (AMPTP) who represent major studios such as Walt Disney Co and Netflix Inc. The agreement includes base wage increases, higher residual payments from streaming, and protection against artificial intelligence replacing member duties. The turnout for the vote exceeded previous records.

The writers’ strike began on May 2 and it’s halted various TV and film projects. While no new contract talks are scheduled between the Writers Guild of America (WGA) and the studios, the directors’ agreement isn’t expected to impact the writers’ position. Hollywood actors are also engaged in labor negotiations with the studios, and if no agreement is reached by June 30, a strike may be called.

Difficult words: ratify (to approve officially or formally), residual payment (the payment that continues to be received after the services or goods have been provided), halt (to stop).

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What impact do you expect the unions' agreement to have on the Writers Guild of America's negotiations with the studios?

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