New Labor Agreement in Hollywood: Studios Propose $100 Million Health Plans for Guilds in Return for Extended Multi-Year Contracts Starting in 2026
SAG-AFTRA Prepares for 2026 Contract Negotiations with Studios
SAG-AFTRA is set to be the first Hollywood guild to begin negotiations for new contracts with studios and streaming services in 2026, with significant demands from both sides.
While no formal agreements have been established, SAG-AFTRA and the Alliance of Motion Picture and Television Producers (AMPTP) are not scheduled to meet until early February. Ken Ziffren, an attorney, remarked in October that "insiders know one of the three guilds has only a six-month reserve," indicating that the AMPTP has effectively aligned studios and streamers in preparation for negotiations.
The AMPTP is reportedly ready to propose around $110 million to SAG-AFTRA, the Writers Guild of America (WGA), and the Directors Guild of America (DGA) to support their health plans, which Ziffren described as their "Cadillac" plans. According to a source familiar with the situation, these plans are currently "running huge deficits on a month-by-month basis," raising concerns about sustainability.
Adding to the complexity, the AMPTP’s financial strategies may include asking the guilds to reconsider the scale of their health plans, possibly reducing services and eligibility to mitigate costs. This comes in light of Ted Sarandos, Netflix co-CEO, playing a pivotal role in ending the recent writers’ and actors’ strikes.
A key theme for the upcoming discussions will be stability, as the industry grapples with ongoing crises and production declines. The AMPTP believes that longer contracts would enable studios and executives to focus more on production rather than labor disputes, ultimately benefiting job security for below-the-line workers.
However, skepticism remains among some labor representatives, who suggest that such promises may not hold substantial value. Recently, the AMPTP acknowledged the challenges facing the WGA Health Plan, expressing a willingness to collaborate on practical solutions during negotiations.
Furthermore, with consolidation in the industry—illustrated by David Zaslav’s $83 billion sale of assets to Netflix amidst competing offers—concerns about control and labor conditions persist. As negotiations draw closer, the WGA is preparing its bargaining committee, with Ellen Stutzman at the helm for the writers.
Currently, the WGA’s contract is set to expire on May 1, 2026, while the SAG-AFTRA and DGA agreements are due on June 30. Stakeholders anticipate that new deals will be established well ahead of these deadlines.
