SAG Strike: What Happens When Hollywood Actors Go on the Picket Line

Film/TV actors are on strike after contract negotiations with studios expired July 12. They will go on strike beginning July 14.

Actors will be joining Hollywood writers on the picket line beginning Friday, July 14.

Negotiations between the Screen Actors Guild (SAG) and American Federation of Television and Radio Artists (AFTRA), which represent the majority of actors in film and television, and major Hollywood studios, who are being represented by the Alliance of Motion Picture and Television Producers (AMPTP), fell through after the Wednesday, July 12 deadline of 11:59 p.m. Pacific time passed without resolution.

Actors will join writers on the picket line starting Friday morning. This will mark the first time the actors and writers will be striking at the same time since 1960.

Fran Drescher, president of SAG-AFTRA, and Duncan Crabtree-Ireland, national executive director/chief negotiator, made the strike announcement at a Thursday press conference following a national board meeting to approve the work stoppage. Crabtree-Ireland said talks with the AMPTP left the union "with no choice" but to move forward with a strike.

"It came with great sadness that we came to this crossroads. We had no choice,” Drescher said in a passionate speech. “We are the victims here. We are being victimized by a very greedy entity. I am shocked by the way the people we have been in business with are treating us. I cannot believe it, quite frankly, how far apart we are on so many things. How they plead poverty that losing money left and right while giving millions to CEOs. It’s disgusting, shame on them. They stand on the wrong side of history at this moment."

Among the actors' sticking points for a new agreement were improved compensation and benefits, residuals that reflect the value of their contributions amid the expansion of streaming services, regulated use of artificial intelligence and the issue of self-taped auditions.

The negotiations began June 7 and had an original deadline of Friday, June 30 at 11:59 p.m. Pacific time, before it was extended to July 12 at 11:59 p.m. Pacific time. 

On June 24, Drescher shared in a video message that negotiations had been "extremely productive" and that they "we're going to achieve a seminal deal." A few days later, more than 300 actors -- including Meryl Streep and Jennifer Lawrence -- signed a letter urging leaders not to compromise and writing "SAG-AFTRA members may be ready to make sacrifices that leadership is not."

"Anyone right now is trying to guess what could happen," Marc Malkin, Variety's senior culture & events editor, told ET on June 28 before the extended deadline was granted. "Over the weekend, people were very hopeful when Fran Drescher came out and said that negotiations were going well and there was progress being made. But then I talked to someone yesterday and they say to me, 'I think there's definitely going to be a strike.' At this point, no one knows and then if there is a strike, how long it goes for, we just don't know."

As the deadline approached, tensions mounted on both sides as the pressure intensified for an agreement to be reached. Late on July 11, SAG-AFTRA negotiators agreed to the AMPTP's request for a federal mediator, according to Reuters, in a last-minute effort to avoid an actors' strike. The actors' union said in a statement it was sticking to the Wednesday deadline and would "exhaust every possible opportunity to make a deal. However we are not confident that the employers have any intention of bargaining toward an agreement."

A source told ET on July 13, "SAG-AFTRA going on a possible strike has really instilled a grave fear for everyone in the entertainment industry because now more than ever, all sides will be affected, with many wondering when their next paycheck will come in. Some in the business are already financial planning by setting aside funds, borrowing money, dipping into other resources. They're basically seeing what they can do in order for themselves and many of their family's to survive."

While the writers' strike has already affected awards shows, delayed or shut down many (but not all) productions and added uncertainty to when certain movies or TV will return, an actors' strike's impact across the industry will be felt even more. Here's an overview of how a SAG-AFTRA strike will affect Hollywood moving forward.

What are the actors fighting for?

Actors, which include film, TV, voiceover artists, hosts and more, are asking for better compensation and benefit plans, a fair residual pay structure that reflects the value of their contributions amid the growing number of streaming services, regulation and protections against any misuse of artificial intelligence (which could cause their likeness or voice to be used or simulate a performance) and compensation for self-tape auditions.

"Right now, SAG-AFTRA, one of their biggest issues is residuals. They want higher payment for residuals, especially with these very successful streaming shows. And then there is the new issue of AI or artificial intelligence," Malkin said. "A lot of actors are having a lot of issues with AI because, does it mean that they're going to lose jobs to computer-generated images? And also their likeness -- how are their likenesses going to be used in the future in terms of AI?"

"The entire business model has been changed by streaming, digital, AI. This is a moment of history that is a moment of truth," Drescher said July 13 after declaring an actors' strike. "If we don’t stand tall right now, we are all going to be in trouble, we are all going to be in jeopardy of being replaced by machines."

What do major studios and streamers want?

AMPTP said in a statement before negotiations began that it was "approaching these negotiations with the goal of achieving a new agreement that is beneficial to SAG-AFTRA members and the industry overall." Studios, production companies and streaming services are likely looking to improve their margin for profit amid a turbulent few months. There could be signs of hope. The AMPTP recently agreed to a deal with the Directors Guild of America (DGA) that was confirmed by its membership.

Why did Meryl Streep and Jennifer Lawrence send a letter?

More than 300 actors, including Meryl Streep, Jennifer Lawrence, Rami Malek, Ben Stiller, Julia Louis-Dreyfus, Quinta Brunson, Amy Schumer and Amy Poehler, signed a letter threatening to strike should an agreement on a new contract not come to pass, which Rolling Stone first reported June 27. Addressed to the SAG-AFTRA Leadership and Negotiating Committee, the letter expressed that "SAG-AFTRA members may be ready to make sacrifices that leadership is not."

"We hope you’ve heard the message from us: This is an unprecedented inflection point in our industry, and what might be considered a good deal in any other years is simply not enough," the letter said in part. "We feel that our wages, our craft, our creative freedom, and the power of our union have all been undermined in the last decade. We need to reverse those trajectories."

Malkin offered his take on why the signed letter was sent to SAG-AFTRA leaders: "Jennifer Lawrence, Meryl Streep, Rami Malek, Quinta Brunson, they sent this letter telling SAG-AFTRA if you are compromising too much just know we do not want you to. We are ready to go on strike. We know it's going to affect a lot of people. We know it's not a great outcome, but do not compromise on these issues."

What happens now that the actors will go on strike?

After talks broke between SAG-AFTRA and Hollywood studios, the actors' union had previously voted to move forward with a strike should a deal not be reached by the deadline. "At this point, SAG-AFTRA does know that its members are ready to strike," Malkin said. "They have voted 98 percent to authorize a strike if it comes down to that." 

A national board meeting took place July 13 to formally finalize the strike, with Drescher and Crabtree-Ireland declaring it official at a press conference that day.

Amid the writers' strike, a handful of productions whose scripts had been completed beforehand are still filming, such as season 2 of House of the Dragon. An actors' strike would mean all scripted series would be forced to shut down once the final decision is made by the national board on July 13. Though, according to Variety, House of the Dragon will continue to film amid the SAG-AFTRA strike due to local labor regulations in the U.K. Otherwise though, Hollywood would have to shut down.

"No scripted shows can keep going because the actors are on strike. How do you film a show without the actors?" Malkin posed. "And really, the only thing that will be in production [amid an actors' strike] will be reality TV shows."

How would an actors' strike affect TV premieres?

Broadcast networks are filling its slots typically filled by scripted programs with game shows or reality TV. Many shows that have halted production or delayed filming because of the writers' strike will be impacted even further with longer delays and possibly have the lengths of their seasons affected by the actors' strike.

"Of course it can get worse, as long as shows are put on hold, production is put on hold, it's going to postpone premiere dates, how long seasons are," Malkin said. "You have a show like Emily in Paris, they shut down production so they don't know when they're going to go back into production. When they go back into production, how fast they can get things going? When [can] they actually premiere a new season?"

How would an actors' strike affect the Emmy Awards?

With the writers' strike ongoing and an actors' strike officially underway, there would likely be a significant delay to the actual 75th Primetime Emmy Awards themselves, which are currently scheduled for Monday, Sept. 18. With no immediate timetable set for the Writers Guild of America (WGA) to negotiate a resolution with Hollywood studios on a new contract, the Emmys -- if it were to go on as scheduled -- would need to be tweaked. And, if the actors join the writers in the labor strike, there would barely be any star presence at the awards show if the September date holds.

Variety reported July 11 that Fox, which has the telecast this year, is aiming for a January 2024 airdate, while the Television Academy is hoping for no later than a November postponement. Nominations were announced the morning of July 12 during a virtual ceremony, with TV Academy chairman Frank Scherma briefly addressing the uncertainty of the future.

This story was originally published on June 28, 2023 at 2:15 p.m. PT. It was last updated on July 13, 2023 at 3 a.m. PT.

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