WGA Tentative Deal Secures $321M Health Plan Boost

The Writers Guild of America reached a tentative four-year contract with the Alliance of Motion Picture and Television Producers over the weekend, securing a record $321 million infusion into the union's health plan to address financial shortfalls amid industry challenges. The agreement, unanimously approved by the WGA East and West boards on Tuesday, covers writers for major studios such as Disney and Warner Bros. Discovery, as well as streaming platforms including Netflix and Amazon. Members will vote on ratification from April 16 to 24.

Guild leaders described the health plan stabilization as the deal's cornerstone. The fund has faced deficits totaling about $200 million over the past four years, driven by reduced film and television production following the 2023 strikes and healthcare inflation averaging 13 percent annually since 2019. Without action, reserves were expected to deplete within three years. To counter this, employers will increase contributions from 13 percent to 16.75 percent of writers' gross compensation, with caps on qualifying earnings rising to $400,000 by 2028, up from levels unchanged for decades. An additional $41 million will transfer from the...