The Writer's Guild of America (WGA) and the Alliance of Motion Picture and Television Producers (AMPTP) are currently in negotiations for a new contract that would dictate how writers are paid for the next few years. The WGA and AMPTP negotiate contracts periodically, typically every few years. In the past, negotiations have typically occurred on a three-year cycle, with the WGA and AMPTP coming to new agreements in 2001, 2004, 2007, 2010, 2013, 2017, and 2020. However, negotiations can also occur outside of this three-year cycle if either party requests it or if there are significant changes or disruptions to the industry. The exact frequency of negotiations can vary depending on a variety of factors, including changes in the industry and the expiration of existing contracts.
These negotiations are a critical part of establishing fair and equitable working conditions for writers in the entertainment industry. It's worth noting that negotiations between the WGA and AMPTP can be complex and contentious, and can sometimes result in strikes or other forms of labor action. And that's where things stand right now. Earlier this month, WGA members voted overwhelmingly to authorize a strike, with nearly 98% in favor and about 2% opposed. The vote authorized the WGA West Board and the WGA East Council to call a strike if a fair deal for a new film and TV contract isn’t reached by May 1, when the current agreement expires.
Hopefully this weekend the Writer's Guild of America (WGA) and the Alliance of Motion Picture and Television Producers (AMPTP) will be able to come to an agreement that works for both sides. If they do come to an agreement they'll be able to avoid a writer's strike that union members have already authorized. The strike could begin Tuesday if an agreement isn't reached.
What Can You Expect During a Strike?
The last Writers Guild of America (WGA) strike took place from November 5, 2007 to February 12, 2008, and it had a significant impact on the entertainment industry. Here are some of the major consequences of the strike:
- Production shutdowns: Many TV shows and movies were forced to shut down production, resulting in significant financial losses for studios and production companies.
- Job losses: The strike led to layoffs and job losses in the entertainment industry, affecting not just writers but also actors, crew members, and other support staff.
- Economic impact: The strike had a significant economic impact on the entertainment industry and the broader economy, with estimates of losses ranging from $2 billion to $3 billion.
- Changes in distribution models: The strike helped accelerate the shift towards digital distribution models, as writers sought to secure a fair share of revenue from online streaming and downloads.
- Longer-term effects: The strike also had longer-term effects on the entertainment industry, including changes in labor negotiations, increased use of reality programming, and a shift towards shorter TV seasons.
Overall, the WGA strike of 2007-2008 had a significant impact on the entertainment industry, with consequences that were felt for years after the strike ended.
What Can You Do to Be Prepared for a Strike?
With the possible WGA strike looming over the industry, and many entertainment industry professionals that could be adversely affected, there are several financial actions you can take to prepare yourself:
- Save money: It's important to have an emergency fund that can cover living expenses for several months in case of a strike. Entertainment industry professionals should try to save as much money as possible in the months leading up to the strike.
- Look for alternative work: If a strike occurs, it may be necessary to find alternative sources of income. Professionals can look for freelance or part-time work that can help cover their expenses during the strike.
- Cut expenses: In addition to saving money, professionals can also cut expenses to make their savings last longer. This could include reducing entertainment or luxury expenses, finding cheaper housing options, or cutting back on non-essential spending.
- Stay informed: Keeping up to date with the latest news about the strike can help professionals make informed decisions about their finances. They can stay in touch with their union representatives and follow news outlets for the latest updates on negotiations.
- Be prepared to picket: If the strike does occur, professionals who are part of the WGA should be prepared to picket. This can be a way to show support for the union and can also help them earn strike pay. The more union members picket the louder the message and hopefully the quicker the AMPTP will make an agreement and bring the strike to a close so workers can return to work.
- Consider seeking financial advice: If professionals are unsure about how to best manage their finances during a strike, they can consider seeking the advice of a financial professional. A financial advisor can help them create a budget and develop a plan to make their savings last longer.
- Freelance writing: Writers can offer their services as freelance writers for blogs, websites, or other publications. This can be a good way to continue writing and earn income during the strike.
- Script editing: Many writers may have scripts that need editing or proofreading, and entertainment industry professionals can offer their services to help polish these scripts.
- Teaching or coaching: Experienced entertainment professionals can offer coaching or teaching services to aspiring writers, actors, or others aspiring to work in the entertainment industry. This can be a good way to share their knowledge and earn money at the same time.
- Social media management: With the rise of social media, many businesses and individuals are looking for help managing their social media accounts. Entertainment professionals who have experience with social media can offer their services as social media managers.
- Voice acting or dubbing: Entertainment professionals with experience in voice acting or dubbing can offer their services for commercials, animation, or other voice-over work that isn't union.
- Personal shopping or styling: Fashion stylists or makeup artists can offer their services to individuals who need help with their wardrobe or makeup for special events.
- Non-union work: Talk to your union reps to find out about the ability to take non-union work that can help fill the income void you experience during the strike.
- Freelance work: Depending on their skillset, workers may be able to find freelance work in related industries, such as advertising, marketing, or video production. They could also offer their services on freelance platforms such as Upwork, Freelancer, or Fiverr.
- Temp work: Workers could also consider taking temporary jobs in other fields, such as retail or hospitality, to make ends meet until the strike is over. There are multiple temp agencies that can place workers in short-term and even longer term temporary jobs.
- Gig economy jobs: With the rise of the gig economy, workers could look into opportunities such as driving for Uber or Lyft, delivering food for Uber Eats or DoorDash, or renting out a spare room on Airbnb.
- Part-time work: Workers could also look for part-time jobs in fields that are less likely to be affected by the strike, such as healthcare, education, or finance.
- Personal projects: During the strike, workers could also use their downtime to work on personal projects, such as writing a book, creating a short film, or launching a blog or podcast. If the strike ends up being long-term, it's possible that the personal project could begin to generate income.
- Unemployment Insurance: If you receive paychecks that have taxes withheld (meaning you receive a W2 at the end of the year) then you pay into the state's unemployment insurance and are entitled to receive unemployment benefits when you are out of work for no fault of your own. There may be a bad stigma surrounding receiving unemployment benefits, but you are actually paying taxes into the system to support it and in the long run you'll be much better off receiving the payments than not.
- Objective advice: A financial advisor can provide objective advice and guidance on how to manage one's finances during the strike. They can help develop a financial plan that takes into account the reduced income and potential loss of benefits, and provide recommendations on how to prioritize expenses.
- Budgeting assistance: A financial advisor can assist in creating a budget that takes into account the reduced income during the strike. This can help ensure that the professional is able to meet their essential expenses and avoid accumulating debt during the strike.
- Investment advice: If the professional has investments, a financial advisor can provide advice on how to manage these investments during the strike. They can provide recommendations on whether to hold or sell certain investments based on the current economic climate.
- Retirement planning: A financial advisor can help the professional assess how the strike may impact their retirement planning, and provide recommendations on how to adjust their retirement savings plan accordingly.
- Tax planning: A financial advisor can help the professional understand the tax implications of the strike, and provide guidance on how to minimize taxes owed during this period.
This content is developed from sources believed to be providing accurate information. The information in this material is not intended as investment, tax, or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. Digital assets and cryptocurrencies are highly volatile and could present an increased risk to an investors portfolio. The future of digital assets and cryptocurrencies is uncertain and highly speculative and should be considered only by investors willing and able to take on the risk and potentially endure substantial loss. Nothing in this content is to be considered advice to purchase or invest in digital assets or cryptocurrencies.
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