A deal has been reached between the union representing Broadway backstage workers, theater owners and producers to avert a strike that would have shut down shows in New York City and on the road.
The tentative deal was announced by the Broadway League and Disney Theatrical Productions, which represent producers, and the International Alliance of Theatrical Stage Employees (IATSE).
IATSE had been in the process of conducting a vote amongst its 1,500 members for strike action when they managed to reach a deal.
Should a strike have gone ahead, 28 shows in New York City and 17 shows currently touring the United States and Canada would have wrapped up overnight.
In a joint statement, the bargainers said: ‘The respective parties will inform their members of the details of this agreement in the coming days.’
The groups announced that they had reached a tentative agreement that had threatened a strike as early as Friday
It comes after Hollywood writers and actors continue their own strike which has brought production in Tinsel Town to a standstill
The tentative agreement will need to be ratified by rank-and-file members before it can go into effect and end the risk of a strike.
The exact details surrounding the tentative deal are unknown, but the union’s statement said it had reached agreements to protect health care and to provide housing for touring crews.
CNN reported that the two sides still remain far apart on priorities including increased salaries and reasonable weekly and daily rest periods.
A Broadway strike would have been a blow to the New York City economy, which is still suffering from the shift from in-office work to people working from home.
Tourism is a major driver of the city’s economy, and Broadway is a significant magnet for those tourists.
The Broadway League reported that in the season that concluded in May, the first full season since Broadway shows were disrupted by the pandemic, theaters reached a total attendance of 12.3 million and grossed $1.6 billion in ticket sales.
This most recent threat comes as 160,000 actors who are represented by SAG-AFTRA, and 11,000 members of the Writers Guild of America continue their strike.
Under the rules of the strike, SAG-AFTRA’s 16,000 members are not allowed to film any movie or TV series, take part in any press or film premieres — including anything at this month’s San Diego Comic-Con.
Picketers carry signs outside Netflix studios on Thursday as the actor and writer strikes continue, July 20 2023
Strike members picket outside the Disney Studios in Burbank, California, on Thursday July 20
Among the shows that are likely to be affected are Ryan Murphy’s anthology series American Horror Story and the second season of the Star Wars series Andor.
Warner Bros. Discovery, however, has indicated that Max’s House of the Dragon will not be affected as many of its actors are British.
Experts now say the dual actors-writers’ strike could last for months.
During that time, major media conglomerates will feel the financial strain, while streaming services fare only slightly better.
Moody’s debt analyst Neil Begley wrote that the firm believes ‘this standstill could be a relatively long strike, with the stakes being larger than they have been in many years.
‘With the sides remaining far apart, we estimate an agreement increasing compensation under new collective bargaining agreements will ultimately cost Moody’s-rated companies an additional $450million to $600 million a year for each year of a new three-year contract for all three guilds (Directors’ Guild of America, WGA and SAG-AFTRA,’ he wrote in his report.
Moody’s debt analyst Neil Begley estimated studios would have to spend $450million to $600million a year more to meet the writers’ and actors’ demands
As part of their demands, the two unions are demanding higher pay to counteract inflation, and guarantees for their future livelihoods.
In addition to salaries when they are actively working, writers and actors earn payments called ‘residuals’ every time a film or show they worked on is aired on network or cable — which is particularly helpful when they are between projects.
The boom in streaming services, however, has significantly disrupted the residuals system.
‘Streaming companies have been feeling the heat from Wall Street to push towards profitability,’ Third Bridge analyst Jamie Lumley said. ‘This has put a number of players on challenging footing as they weigh content costs, strategic decisions and the growth of their audience.
‘With actors and writer seeing contracts and royalties heavily impacted by streaming, the stakes are high for everyone at the negotiating table.’
He added: ‘We’ve been hearing that most streaming companies won’t feel the pain from the strikes until 2024 given the pipeline of content that has already been locked in. However, streamers could be in trouble as soon as the velocity of content slows.
‘Our experts emphasize that content is still king, and if streamers want subscribers to keep coming back, they need to have a steady feed of new movies and shows being released on their platforms.’
