The entertainment industry breathed a collective sigh of relief after an announcement this week that the IATSE, the union representing Hollywood’s “below the line” production workers, and the AMPTP, the trade association representing Hollywood’s largest studios and streamers, had reached a tentative agreement on a new labor contract. An agreement would mean that the two sides are on the verge of averting a costly strike.
The importance of this cannot be overstated, as the industry has yet to fully recover from the damage done by last year’s dual strikes by Hollywood writers and actors. Earlier in the month, reports of an impasse in negotiations had many worried that another work stoppage and shutdown could be in the offing.
IATSE’s official statement gave several details on specific terms of the agreement, including a 14.5% wage increase over the three years. This matches similar pay raises that the studios agreed to with actors in last year’s updated agreement. The agreement also includes “new streaming residuals” that will flow to workers, addressing a $670 million shortfall in pension and health benefits, a key issue in the talks.
Workers will also receive triple pay for any workday that runs longer than 15 hours. It also includes protections against AI being used to replace the role of workers, though no additional details on this measure were given. The negotiated agreement must still be ratified by the members of IATSE’s 13 guilds, but most are optimistic about its chances given the immense pressure all parties are feeling to avoid another strike.