One of the factors contributing to the weakness of the August employment report is the halt in television and movie production due to a deadlock in contract negotiations between major studios and unions representing screenwriters and actors. The motion picture and sound recording industry saw a decrease of 16,800 jobs in August. While this may not seem significant compared to its overall workforce of approximately 438,000, it underestimates the total impact of the labor stoppages considering the economic power generated by the film industry, particularly in Los Angeles.
The strikes began with 11,500 members of the Writers Guild of America going on strike in May. As a result, activity in the film industry decreased by 28.8 percent in the second quarter compared to the previous year. The strikes escalated when SAG-AFTRA, representing over 160,000 actors and broadcasters, struck in July following the expiration of their contract with major film and television studios.
However, the effect of striking actors and writers on employment is not a one-to-one translation. Many of SAG-AFTRA’s members work in television news stations and are not on strike. Those who do work in movies and TV shows typically sign short-term contracts rather than having continuous employment. During the strike, they are allowed to work in theater, commercials, and a few independent projects that comply with the union’s demands. Additionally, most actors earn some income through residuals, although this revenue has declined with the rise of streaming and will continue to decrease as the strike persists.
As Jodi Long, president of SAG-AFTRA’s Los Angeles branch, points out, the people directly affected in terms of job market are those who work on set, such as hair and makeup artists, gaffers, grips, and production staff. The support services necessary for movie and TV production have mostly ceased operations, creating a ripple effect. While some of these services cater to other industries as well, many have developed around the specific needs of the film industry. Even when the strike concludes and the industry becomes busy again as studios replenish their pipelines, months of lost income will be difficult to recover.
For example, Limelight Catering, a business heavily dependent on the film industry, had to lay off 50 staff members, almost all of whom are Teamsters, when the writers’ strike began. The owner, Steve Michelson, laments that while he wishes the actors and writers success in obtaining higher wages, his catering business receives no benefit from the strike. Meanwhile, the affected workers in California can apply for unemployment insurance as collateral damage from labor disputes, whereas New York State allows striking workers to collect unemployment benefits.
Bill Bridges, a member of the International Alliance of Theatrical Stage Employees, shares his story of struggling financially after recovering from surgery and returning to work driving film trucks, only to have it halted by the ongoing strike. He supports the strikers but is behind on bills and worried about his own union’s contract negotiations in the coming year.
Overall, the impact of Hollywood strikes extends beyond the striking workers themselves. It affects ancillary industries, support services, and individuals who rely on the film industry for their livelihoods. As negotiations continue, it remains to be seen how the strikes will ultimately reshape the employment landscape in Hollywood and beyond.
Unique Perspective: The Hollywood strikes serve as a reminder that labor disputes in any industry can have far-reaching consequences beyond the direct participants. They highlight the interconnectedness of various sectors within an ecosystem and emphasize the importance of finding equitable solutions that benefit all stakeholders. The impact of strikes extends beyond the immediate workforce, impacting businesses, ancillary services, and the overall economy. It is crucial to recognize and address these broader implications in order to foster a sustainable and thriving work environment for all.
