SAG-AFTRA Board Recommends Landmark Four-Year Deal With Major Studios
The SAG-AFTRA national board has decisively moved toward a new era of labor stability, voting 89% in favor of recommending a four-year contract with the major studios. The agreement, reached on May 3 after six weeks of intense bargaining with the Alliance of Motion Picture and Television Producers (AMPTP), now heads to the union’s full membership for a ratification vote.
This contract marks a strategic shift for the AMPTP, which is prioritizing longer “labor peace” by securing four-year terms rather than the traditional three-year agreements. The deal arrives on the heels of a ratified Writers Guild of America (WGA) contract and coincides with the start of negotiations for the Directors Guild of America (DGA).
Key Takeaways of the Tentative Agreement
- Pension Consolidation: A plan to merge the union’s two separate pension funds by January 1, 2028.
- AI Safeguards: New restrictions on the use of “synthetic characters,” requiring them to provide “significant additional value” to a production.
- Streaming Boost: An increase in contributions to the union fund for high-performing streaming shows, rising from 25% to 35% of a performer’s base residual.
- Wage Growth: A consistent 3% increase in most minimum rates for each of the four years of the contract.
The Pension Merger: A Point of Contention
One of the most significant—and controversial—pillars of the new deal is the merger of the Screen Actors Guild and the American Federation of Television and Radio Artists pension systems. While the two organizations merged into one union in 2012 and combined their health plans in 2017, their pension funds have remained separate for over a decade.
Union leadership argues the merger is a win for members with “split earnings”—those who earn income from both plans but haven’t earned enough in either to qualify for individual credits. By joining these into a single system, more performers will become eligible for benefits. To support this transition, studios have agreed to a 1% increase in the contribution rate to stabilize the merged plan’s finances.
However, the move has not been without pushback. Peter Antico, a former candidate for secretary-treasurer, has criticized the merger as a “bailout,” claiming it is “very detrimental to SAG and it bails out AFTRA’s retirement fund.” Antico has already filed a complaint regarding the merger with the Department of Labor.
Navigating the AI Frontier
As generative AI continues to disrupt the entertainment industry, SAG-AFTRA has focused on establishing guardrails for “synthetic characters.” While the union did not secure a guaranteed payment into a union fund for the use of these AI-generated performers, it did win a critical restrictive clause.
Under the new terms, studios agree not to utilize synthetic performers unless they bring “significant additional value” to the project. To ensure these terms aren’t ignored, the contract includes a new arbitration provision specifically designed to enforce the AI and synthetic character guidelines.
Streaming Residuals and Minimum Rates
The deal addresses the ongoing tension over streaming compensation by increasing the share of residuals flowing into the union fund for the most-watched streaming content. The contribution rate will jump from 25% to 35% of a performer’s base residual, providing a more robust financial cushion for the membership.
the contract provides a predictable wage trajectory with a 3% annual increase in most minimum rates across the four-year duration.
What Happens Next?
The future of the deal now rests with the membership. SAG-AFTRA is conducting a series of webinars on Tuesday and Wednesday, as well as later in the month, to educate members on the specifics of the agreement. Members will receive instructions via mail on how to cast their ratification votes, with the voting period officially closing on June 4.
This agreement follows a pattern of recent labor settlements. The WGA deal, ratified on April 24 with 90% approval, included its own health fund bailout and benefit adjustments. As the DGA begins its negotiations, the industry is watching to see if the AMPTP’s preference for extended four-year contracts becomes the new standard for Hollywood labor relations.