WGA deal includes $320 million to shore up health plan

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The major Hollywood studios will pitch in $320 million to sustain the health fund of the Writers Guild of America, the union told its members Wednesday.Under a tentative contract recently negotiated by the union, TV and film writers would pay more for their healthcare but, in return, the studios would pay a record $321 million into the health plan — by far the highest level to date, the WGA said.In a message to its members Wednesday night, the union’s leaders said the agreement also includes higher residual rates — including a provision for a “success bonus” for the most popular streaming shows from 50% of the base residual to 75% — and language on the licensing of work for AI training.Additionally, the contract terms have been extended from the WGA’s usual three years to four.

The current contract expires May 1.“We are proud of what we achieved in this negotiation, made possible by your support,” said WGA’s negotiating committee in a statement to members.“Our most significant accomplishment was restoring our health plan to a sustainable path after facing severe pressure from industry contraction and runaway healthcare cost inflation.”Negotiations between the union and the Alliance of Motion Picture and Television Producers began in March.

The pending contract was first approved last weekend and the boards of WGA East and West approved the deal on Tuesday.It will be sent to its members for ratification next week.

Hollywood Inc.Negotiations between the union and film and TV studios began in March, with union leaders prioritizing more robust healthcare benefits, streaming residuals and protections against the misuse of AI tools.As part of the healthcare funding boost, the union secured increases in the caps that companies contribute to the union’s healthcare plan to as high as $400,000 by 2028.

Union officials say the current cap has remained unchanged ...