DGA Contract Contents and Today’s Ratification Vote

DGA Contract Negotiations 2023-2026: Predictions and Expectations Before the June 23 Vote

The entertainment industry has been shaken by the ongoing Writers Guild strike and further threats of a labor strike from SAG-AFTRA members. Meanwhile, the Directors Guild of America's (DGA) negotiated with the AMPTP beginning on May 10, and ending on June 3 when the Guild reached a tentative agreement with the producers. The final date for members to ratify or reject the contract for is today, June 23.

The DGA represents over 19,000 directors, assistant directors, stage managers, and location managers; its current contract negotiation is critical for the industry. While the DGA board has unanimously recommended members vote “yes” for the 2023-2026 contract, there has been vocal dissent from prominent directors including Larry Charles, Warren Leight, and Lilly Wachowski, per Variety’s reports. Still, the speculation remains it will be an overwhelming yes vote from members at large.

So, what can Guild members expect from the 2023-2026 contract?

The new contract will include a 76% increase in overseas streaming residuals, a subject of much contention across all guilds and unions seeking fair compensation regardless of the distribution method. This poses is a significant victory for DGA members and will ensure they receive a fair share of the revenue generated by their work globally.

Furthermore, the new contract will reduce the number of hours worked on set. Overtime penalties for First Assistant Directors will go into effect after 13 hours instead of 14, either resulting in shorter workdays or higher payments when days run over. This change marks a focus on the overall health and well-being of guild members and all crew as a result.

Another significant change, TV directors will now receive second-cut privileges before getting producer notes back. The change is a significant win for the directors who seek greater control over their work.

The new contract will also introduce a limited program for safety supervisors on set, which will relieve some of the duties of the First Assistant Director, while ensuring safety remains a priority. Safety supervisors are already a common position for productions in the UK, Australia, and New Zealand. Another major win for safety in this contract is the ban of live ammunition. Between safety supervisors and the ban on ammo, this could mark a new era for North American on-set safety.

Finally, the new contract will include annual wage increases as follows:

• 5% for the first year of the contract

• 4% for the second year

• 3.5% for the third

The wage increases are crucial to address the rising cost of living and inflation and ensure the guild members' salary maintain their historical gains year-over-year. These increases represent a 13% compounded wage increase from the current contract.

It's worth noting there are some areas where the new contract falls short. As it stands, the 2023-2026 contract does not allow the DGA to cover overseas productions that get U.S. distribution, an increasingly common occurrence.

AI remains a contentious topic across the industry. In the new contract, DGA duties must be assigned to a “person,” meaning that generative AI cannot replace human work. However, the contract does not restrict DGA material from AI training or “learning,” which leaves the door open for AI to be used in the creative process in the future. The DGA and AMPTP have agreed to twice-yearly talks regarding the use, implementation, and role of AI in film and television production.

The contract seems to address many significant concerns among Directors Guild members. Improved working conditions, fair compensation, and creative control will likely push Guild members to a “Yes” in the vote today.