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There’s been much discussion surrounding AI and its potential impact on entertainment, including actors. For instance, James Earl Jones and his family recently agreed to digitize his voice for use in games like Fortnite, leading to some fascinating developments if probed correctly. However, the perception that SAG/AFTRA (Screen Actors Guild/American Federation of Television and Radio Actors) is solely focusing on high-profile actors regarding contracts is erroneous.

In actuality, I’d like to clarify not just SAG/AFTRA contracts but all Hollywood unions and guilds and how things truly unfold in contract negotiations.

These agreements, often referred to as MBA or “Minimum Basic Agreements,” essentially establish the most fundamental terms in a contract. They are negotiated and sometimes even struck during the process, and they serve to define the lowest possible standards regarding payment, pensions, benefits, healthcare plans, and working conditions. In essence, these agreements can cover a wide range of issues, effectively setting a baseline for many aspects of employment.

These contracts aren’t primarily intended for high-profile individuals. In fact, it’s estimated that out of around 165,000 members of SAG/AFTRA, only about 2,500 or fewer earn 90% of the total income. This suggests that these contracts are mainly designed for people who work sporadically or just a few times throughout their lives, rather than those with consistent screen presence.

When an issue arises, a guild member brings their concerns about potential violations of contract terms to the attention of the guild. The guild investigates these claims and, if they agree, they will discuss the matter with the producer or contract signatory to find a resolution. If the signatory denies any wrongdoing, the case escalates to what’s called a “Grievance.

Now things get intriguing. When contracts you hear about in the news are finalized, they contain two groups of entertainment lawyers, typically 20-25 from each side representing producers and the guild. These lawyers function as unofficial judges in disputes. The main purpose is to prevent strikes and major disruptions over minor or specific disagreements. Once a lawyer is randomly selected to handle a dispute, the resolution process tends to be rather slow.

Typically, the date set for the hearing to resolve disputes, where this lawyer will determine who is right and who is wrong, is approximately a YEAR after the initial filing of the grievance case. However, people not directly involved may not fully comprehend that it’s the dispute itself, not the parties involved, that’s being tried in these cases.

To provide more clarity on the matter, let me share an experience. It was regarding the Director’s Guild of America (DGA), not SAG/AFTRA. There was a disagreement over payment and entitlements, with both parties believing the amount to be around $8,500. However, the producers had paid significantly less than $2,000. A few days before the trial, the member received a call from the Guild. They proposed, “Would you be open to accepting $3,500 and resolving this issue?

The member replied with a smile, “I’d feel better about the $8.500.”

At that moment, they discovered that although it appeared the Guild was working for their personal interests, it wasn’t true. The GUILD doesn’t advocate for individuals—it does so to uphold the TERMS of the CONTRACT. Disputes can be resolved with or without the GUILD establishing a precedent, and when the opposing side, like in this situation, proposes “If we agree to reduce the amount, we’ll accept your interpretation of the contested terms for ALL studios and ALL future similar cases, thereby preventing any further disagreements on this matter,” it’s important to note that they are attempting to set a permanent resolution.

And so, the agreement was struck, with the well-being of the contract as a priority, despite an individual member having to sacrifice a portion of their rightful share, which could be seen as making a concession for the team’s benefit.

Essentially, the contract and the guilds are primarily concerned with establishing precedents, following proper procedures, and setting the minimum acceptable terms. In my view (keeping in mind I have no special knowledge about this or similar cases), it appears that the SAG/AFTRA members may have come to the conclusion that the AI-related provisions they obtained during the industry upheaval, which they initially considered very advantageous, might not be as beneficial as they once thought.

Regardless of its quality, they must stand by it. The agreements that high-profile celebrities or their heirs make hold no bearing on the matter at hand.

Now, you have a basic understanding of how the entertainment industry functions. For additional behind-the-scenes information, keep following us across our various channels. And remember, your Uncle Lew, who’s been around for a while and has witnessed many things, is a great resource with more knowledge than he sometimes lets on! This should aid you in filtering through the often exaggerated and inaccurate news headlines found elsewhere.

Questions? Just ask.

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2025-05-25 16:57