Directors Guild of America Approves New Contract, Signaling Progress in Industry Labor Relations

Directors Guild of America Members Approve New Contract, Bringing Industry Closer to Labor Peace

In a significant step towards achieving labor peace in the entertainment industry, members of the Directors Guild of America (DGA) have voted to ratify their new contract. The DGA announced on Friday that 87% of its membership had voted in favor of the agreement, with a turnout of 41%. This turnout was the highest ever for a ratification vote, with 6,728 members casting their votes out of 16,321 eligible.

The new contract includes several key provisions that were top priorities for the guild. One of the major highlights is a 76% increase in foreign streaming residuals. Additionally, the contract introduces a “second cut” for TV directors and a pilot program for set safety. It also moves overtime penalties one hour earlier for assistant directors.

Since the tentative agreement was announced on June 3, the DGA has conducted multiple member meetings, both in person and over Zoom, to explain the terms of the agreement. These terms also include provisions on artificial intelligence, family leave, and increases in minimums of 5% in the first year, followed by 4% and 3.5% in subsequent years.

The DGA deal is expected to be the easiest hurdle for the Alliance of Motion Picture and Television Producers (AMPTP). The DGA has only gone on strike once in its history, for a few minutes in 1987.

While the DGA has successfully ratified their new contract, the AMPTP is still in talks with SAG-AFTRA, which represents 160,000 performers. The contract between SAG-AFTRA and the AMPTP expires on June 30, and if no deal is reached by then, the leadership could call for a strike.

Following negotiations with SAG-AFTRA, the AMPTP will need to reach an agreement with the Writers Guild of America (WGA), which has been on strike for 53 days. The studio group typically applies the terms of one guild’s contract to the other two in a system of “pattern bargaining.” However, both SAG-AFTRA and the WGA have stated that they will not be bound by the terms of the DGA contract.

While the majority of DGA members expressed support for the agreement, some had reservations about the language regarding artificial intelligence (AI). The AI provision, the first of its kind in any guild contract, clarifies that generative AI does not replace the duties traditionally performed by guild members. However, it does not prohibit AI and only mandates consultation on its use in the creative process. The WGA and SAG-AFTRA have emphasized the need for provisions governing how AI programs can be trained.

Many writer-directors, who are members of both the WGA and DGA, publicly announced that they would be voting against the agreement in solidarity with the WGA strike. Some writers also criticized the DGA for reaching the agreement, suggesting that it would have been better to wait until the writers have a contract.

In response to these concerns, DGA President Lesli Linka Glatter stated that the guild “didn’t bargain in a vacuum,” acknowledging the impact of the writers’ strike on the directors’ leverage. Glatter emphasized the DGA’s support for writers, actors, and all crew members, and pledged to stand with other unions during their negotiations.

If the DGA membership had voted down the agreement, negotiators would have been compelled to return to the bargaining table. The DGA traditionally announces that members voted to ratify by an “overwhelming” margin without providing the tally. The last time the guild released the actual results was in 1996, when the contract was approved with a vote of 2,949 to 112, or 96.3% in favor.

What are the potential consequences of not achieving labor peace in the entertainment industry, and how does securing a new contract with the DGA help prevent these consequences

With the International Alliance of Theatrical Stage Employees (IATSE), which represents over 150,000 workers in the entertainment industry. The IATSE contract expires on July 31.

The approval of the DGA contract brings the industry one step closer to labor peace, as it sets a positive precedent for future negotiations. The increased foreign streaming residuals and improved working conditions for TV directors and set safety demonstrate the guild’s commitment to securing fair terms for its members.

Achieving a new contract with the DGA also provides hope for SAG-AFTRA and IATSE, as they continue negotiations with the AMPTP. The success of the DGA in securing favorable terms sets a positive tone for the upcoming talks and could influence the outcome of those negotiations.

Labor peace in the entertainment industry is crucial for the smooth operation of film, television, and streaming productions. Strikes or labor disputes can lead to delays in production, financial losses, and disruption to the industry as a whole. By securing a new contract with the DGA, the industry takes a significant step towards ensuring stability and cooperation between workers and employers.

The approval of the DGA contract by such a significant majority demonstrates the unity and support among its members. This unity will be crucial as SAG-AFTRA and IATSE continue their negotiations and face the possibility of strikes or other labor actions.

Overall, the approval of the DGA contract is a positive development for the entertainment industry and brings it closer to achieving labor peace. It sets a positive precedent for future negotiations and provides hope for favorable outcomes for SAG-AFTRA and IATSE. The industry can now move forward with greater confidence and stability, ensuring the successful production of high-quality content.