Journalist and Lawyer Jonathan Handel has done an excellent review of SAG-AFTRA's 18-page summary of its new deal.
Here's his summary of SAG-AFTRA's summary:
SAG-AFTRA released a detailed, 18-page summary of its new deal last night, accompanied by the news that the union board had approved the tentative agreement overwhelmingly (by 89%, I’ve learned). With enhancements in AI, pension, residuals, covered work and more, the contract goes to the members for expected ratification, with ballots due back June 4.
“This agreement makes very significant advances in many areas that affect SAG-AFTRA members’ lives on a daily basis, ranging from residuals to AI to retirement benefits and beyond,” SAG-AFTRA National Executive Director Duncan Crabtree-Ireland told me. “It’s a smart and strategic deal that positions our members for long term success.”
I hope so. US production is down by 35% or more, depending on your choice of metric and gloom is the order of the day. The new deal is worth $700 million, I’m told. Let’s take a look.
Term
It’s a four-year deal, same as the WGA’s new pact and a break from the previous three-year norm. This was management’s strong desire—labor peace,rather than constant jitters about potential strikes. Agreeing to this facilitated getting a deal done expeditiously, rather than a nail-biting down-to-the-wire that would have likely engendered a production slowdown that would harm actors as well as the companies. “Predictability is good for everyone right now,” Crabtree-Ireland said.
Wages
3% increases per year. That’s less than the current inflation rate (CPI-U) of 3.81% (Thanks Trump!). The companies were eager not to break the pattern set with the WGA deal—and SAG-AFTRA negotiators were cognizant of the need to reach a deal that doesn’t drive production overseas. For that reason, the union focused on residuals, and also pension and health plan issues; see below.
Artificial Intelligence
There’s a lot here …
Digital Replicas
· Digital replicas are now protected even if they’re made without using scans, i.e., if they’re made using ordinary photography.
· Independently created digital replicas must trigger at least scale compensation and residuals.
· Using a digital replica for dubbing into a foreign language now requires consent.
· Digital replicas cannot be used during a strike in any circumstance where performer’s consent would have been required (which still leaves a loophole, it appears).
· Producer must have “an articulable business reason” for scanning.
· Data security provisions are enhanced and minors receive additional protection.
Synthetics (Formerly Called “Synthetic Performers”)
These are completely synthetic avatars that look like humans but not any particularly identifiable human. Here, the union obtained phraseology to significantly slow any tendency towards adoption, which I have edited somewhat for brevity:
· The parties acknowledge and reaffirm the importance and central role of human performance in motion pictures (including television).
· Producers agree to a principle strongly favoring human performances.
· Producers agree that human performers will continue to perform services covered by the union agreements.
· Producers agree that they do not intend to use a Synthetic in a human role that would otherwise be performed by a human or a digital replica unless the Synthetic brings “significant additional value” to the motion picture.
· Producers commit to a strict notice and bargaining schedule
· If Producer violates any of the foregoing, the Union may arbitrate
seeking damages in an amount that will not necessarily be limited to the compensation that would have been paid to a natural performer for rendering the performance for which the Synthetic was used.
That last bullet point is a key deterrent to use of Synthetics, as it raises the risk and liability to uncertain and potentially high levels.
AI Training
As with the new WGA deal, producer must notify the union of any AI training licenses to third parties and meet to discuss the license, including remuneration, if any.
Residuals
· High budget AVOD and SVOD residuals are increased.
· Move-over residuals—applicable when product not made initially for SVOD is subsequently moved over to SVOD—are also increased, in a fashion that helps correct a particular preexisting SAG-AFTRA disadvantage in residuals formulas.
· Success bonus amounts are increased.
· Data transparency and reporting are enhanced.
· Advance pay residuals, which allow initial compensation to eat into residuals, are further restricted.
Pension Plan Merger
SAG and AFTRA merged in 2012; their TV contracts merged in 2014; and the two separate Heath Plans merged in 2017 (as I first exclusively reported a decade ago). But due to legal and actuarial complexities, the SAG Pension Plan and AFTRA Retirement Fund still haven’t merged. Long in the making, that’s now expected to change, with a target date set for January 1, 2028. That will benefit the thousand or so union members who find their work split between the jurisdictions of the two pension/retirement systems, which can result in their not meeting qualifying income levels for either one. It will also disadvantage the smaller number of members who might otherwise qualify for two pensions.
Health Plan
The companies’ contribution rate to the Health Plan increases by 1%, a good get for the union. Eligibility for the Plan tightens slightly, and premiums increase by about 4%—but are still only $130/month for individual coverage, far lower than private sector or Medicare rates.
Logo
Producers must display the SAG-AFTRA logo in the end credits. Previously, this was only required on low budget movies and Netflix productions. Fun fact: Netflix is part of the AMPTP, but also has an individual deal with SAG-AFTRA; renewal negotiations on that deal are expected to start soon.
Verticals (Micro-Dramas)
If the companies start producing these on more than an experimental basis, the union can reopen negotiations on applicable terms and conditions.
Choreographers
They’re now unionized, with SAG-AFTRA as their union. This is an unusual exception to the industry’s previous resistance to new unionization.
Background Actors, Dancers, Singers, Stunts and Young Performers
Various improvements and changes.
Casting
Various improvements, including a provision encouraging virtual auditions (such as a Zoom meeting), rather than only self-taped auditions, which don’t allow for interaction with the performer.
Television Performers
Various improvements to terms and conditions for different categories of television series performers.
Paid Parental Leave Fund
This is intended to be established, with benefits available July 1, 2029.
Pronouns
Producer must use best efforts to provide performers with an option to indicate their preferred pronouns and to include such pronouns on deal memos, on-boarding paperwork, cast lists and call sheets. (Don’t tell Trump!)
And More …
See the union’s summary for details.
About Jonathan Handel: Jonathan Handel is a transactional entertainment and technology lawyer at Feig/Finkel and independently, with an additional specialty in Hollywood unions and guilds, and is also a journalist, media commentator with over 1,700 appearances, and occasional writer of screenplays, poetry and stories. He’s published six books and his writing has appeared in The Hollywood Reporter (contributing editor, 2010-2020, 1,400 stories), Puck (2022-2024), LA Times, LA Business Journal and elsewhere. Jonathan has been an adjunct professor at UCLA, USC and Southwestern law schools and is a member of the Television Academy and an associate member of the Dramatists Guild and the Society of Composers & Lyricists. He is a graduate of Harvard College (1982/83 AB magna cum laude in applied math and computer science) and Harvard Law School (1990 JD cum laude). Prior to law school, Jonathan worked in tech and was a gay political activist and an elected Democratic party official. Visit jhandel.com and jhandel.news.
