That's A Wrap: 2023 A Strike Odyssey

1967 is known for the “Summer of Love.” Will 2023 be remembered for not only the “Summer of Strikes”, but the birth of a modern-day labor movement? A labor movement which not only considers and protects wages and working conditions, but how workers can have a say in the way Artificial Intelligence (“AI”) is used in the workplace? Will AI grow stronger, or will the proverbial human soul prevail?

On May 2, 2023, the Entertainment Industry’s Writers Guild of America (“WGA”) went on strike and spawned a labor renaissance by increasing awareness of 1) the disparity of income between employees and employers, and 2) how AI can be used in the workplace. On May 10, 2023, the Directors Guild of America (“DGA”) began negotiations with the Studios and the DGA quickly consummated it’s deal on June 3rd, 2023. On June 13, 2023 the Screen Actors Guild — American Federation of Television and Radio Artists (“SAG-AFTRA”) went on strike and ended it’s strike on 11/9/23.

Were the dual WGA and SAG-AFTRA strikes a catalyst for a Labor Movement reckoning and/or renaissance in the United States? Were the powerful stories and facts written on various WGA and SAG-AFTRA picket signs over the summer of strikes a factor? The picket lines and signs appeared all over social media and the news and those images of writers/workers joining forces and walking the lines called out the imbalance of salaries and benefits between CEO’s and employees. The signs like “AI has no Soul” also made America think about how AI could adversely affect all. These signs were seen by millions on social media platforms and on news programs. The strike even created a new podcast format, namely “Strike Force 5”, where late night talk show hosts came together to talk about the strikes and to raise funds for staff on their shows impacted by the WGA strike.[1]

The strikes raised questions that transcend the entertainment industry and asked Americans to consider the enormous power of corporations. New technology like AI can replace workers and limit the power of consumers based on complex algorithms and unprecedented access to meta data. In addition to striking and raising questions about fair compensation and working conditions, for the first time the WGA published a report entitled “The New Gatekeepers” which called for antitrust agencies like the FTCC and lawmakers to act.

This summer of strikes also produced anger, distrust and disrespect between the Unions and Management in a world suffering with strife. The ongoing climate driven tragedies in Maui and the wars in Ukraine and Israel have left many with feelings of overwhelm and despair. The economic fallout from the strike is horrific. It’s estimated that the dual strike resulted in a $4 billion loss globally for the Entertainment Industry and other small businesses and contractors that rely on the Entertainment Industry to thrive.[2]

Paradoxically, the surprise summer of 2023 blockbuster hit “Barbie” and the “T-Swift lift” shows us the power of women, love and how soulful stories and songs can touch a deep cord in humanity and increase happiness and give the economy a boost at the same time. Indeed, Fortune magazine reported U.S. consumer spending because of the “Swift Lift” could top $4.6 billion.[3] These phenomena demonstrate a changing demographic can produce exceptional profit when shared with great talent.

Fall helped cool the hyperbole and tensions between the WGA and SAG-AFTRA. After meeting behind closed doors for five days, on September 23, 2023, Yom Kippur, the AMPTP and the WGA reached a tentative agreement which was reduced to writing on September 25 and later overwhelmingly ratified by WGA members.

On October 11, 2023, SAG-AFTRA talks broke off as that strike reached 100 days. After 118 days on November 9, 2023, the AMPTP and SAG-AFTRA reached a tentative agreement. On 11/10/23 the SAG-AFTRA National Board votes on the new deal which, according the the SAG-AFTRA website:

“This revolutionary agreement achieves major breakthroughs in addressing compensation via residuals and protections from generative artificial intelligence technology, while reaffirming the role human performers play in the production of film, television and streaming entertainment.

[T]he National Board will meet to review the tentative agreement and vote on whether or not to send it to you, the membership, for a ratification vote.

Although full details will not be shared in advance of tomorrow’s meeting, we wanted to share just a few key deal points:

• More than one billion dollars in new wages and benefit plan funding;
• A streaming participation bonus;
• Minimum compensation increases that break the so-called “industry pattern;”
• For the first time, consent and compensation guardrails on the use of AI;
• Raised Pension & Health caps that will channel more value into our funds; and
• Critical protections for diverse communities.” See: https://www.sagaftra.org/message-your-sag-aftra-president-and-chief-negotiator

It’s almost a foregone conclusion the SAG-AFTRA deal will be ratified in the coming days.

In the meantime, it appears the Entertainment Industry has had a rebirth and it’s soul will live on. Talent has achieved through solidarity and picketing historical gains that, like ripples in a pond, will continue to power the labor movement for years to come.

[1] https://strikeforcefive.com/.

[2] Natasha Chen, They Don’t Act or Write, but the Hollywood Strikes are Putting Them Out of Work, CNN, July, 22, 2023, https://www.cnn.com/2023/07/22/media/hollywood-strike-economy/index.html.

[3] Rachel Shin, Analysts Coin the ‘TSwift Lift’ for the Revenue Bump Businesses get when Taylor Swift’s Eras Tour Comes to Town, Fortune, June 23, 2023, https://fortune.com/2023/06/23/taylor-swift-eras-tour-concerts-tswift-lift-hotels-business-impact/?utm_medium=social&utm_source=twitter.com&utm_campaign=fortunemagazine&xid=soc_socialflow_twitter_FORTUNE.