SAG-AFTRA: Why are Actors going on Strike? | Contract Explained

SAG-AFTRA strike actors writers contract

Hollywood has come to a halt, or it at least looks like it. In a historic move, the Screen Actors Guild – American Federation of Television and Radio Artists (SAG-AFTRA) has announced a nationwide strike. They joined forces with the Writers Guild of America’s (WGA) ongoing strike for fair wages and improved working conditions. This is the first time in 60 years and only the second time ever that both actors and writers are simultaneously on strike.

SAG-AFTRA and the Alliance of Motion Picture and Television Producers (AMPTP) had negotiated for weeks but failed to reach a satisfactory agreement. Let’s look at the contract issues that led to the strike and explore the reasons behind this significant industry-wide protest that sends out a powerful message.

SAG-AFTRA announces strike with WGA

The official announcement came through a press conference held at the SAG-AFTRA Plaza in Los Angeles. This happened shortly after the Guild’s National Board vote. Before the decision was made, there was an impressive strike authorization vote.

In the vote, over 97% of SAG-AFTRA members voted in favor of the strike. This overwhelming support shows that the guild’s members are ready to go to any lengths to take action if contract renegotiations fall through. 

It is important to note that the contracts expired on June 30. By then, no satisfactory deals were in place. This made the strike become a reality, effective Thursday, July 13, at midnight. The announcement came just hours after the TV Academy announced Emmy nominations. 

Artificial intelligence (AI) has made an impact in every field, including the entertainment industry. This has raised concerns among SAG-AFTRA members as well. They call for regulations to protect actors’ digital likenesses and ensure ethical use.

What is the contract dispute about?

SAG-AFTRA represents approximately 160,000 American laborers in the entertainment industry. They often negotiate deals with studios and platforms every three years regarding payment and working conditions for actors. 

The main problem with the contract dispute lies in the significant changes that studios and streamers have implemented in the industry’s business model. In the meantime, actors’ contracts remained stagnant. 

Refusing to engage with SAG-AFTRA’s key proposals and disrespecting its members have been major factors leading up to the strike. The AMPTP blamed SAG-AFTRA for not acting in its members’ interests and choosing to avoid contract talks.

Why are actors going on strike?

By going on strike, SAG-AFTRA members demand better minimum wages across the board. While the public believes actors are well-paid, that primarily applies to stars exclusively. Most junior actors are underpaid, and the strike hopes to resolve this. 

In the streaming era, studios make record-breaking profits, and the union aims to ensure that the workers receive their fair share. SAG-AFTRA is also seeking improved healthcare benefits for its members.

Residual payments are another key factor behind the strike. They contribute to a passive income for actors for their work in reruns, syndication, and streaming platforms. The union is pushing for a revamped residual payments system that is equitable in nature. 


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