Hollywood’s High-Stakes Strike: Actors and Writers

160,000 actors are joining writers on the picket lines against AMPTP (film and TV companies), effectively shutting down the industry. Leaders of union SAG-AFTRA describe negotiations as combative although the AMPTP offered pay and residual increases, higher caps on pension and health contributions, audition protections, shortened series options, and AI protections.—hollywoodreporter.com

Answer the following questions to check your understanding of the story.

What actions can SAG-AFTRA take to raise the compensation received by its members?

SAG-AFTRA can _____________.

a) encourage AMPTP to hire non-union labor

b) increase the VMP of its members by requiring training and professional certification

c) encourage more actors to join the union

d) increase the VMP of its members by making professional certification easier to attain

If the situation faced by SAG-AFTRA and AMPTP is a bilateral monopoly, what is the outcome of the current strike?

a) AMPTP will refuse to offer anything further and will shut down the industry until SAG-AFTRA agrees.

b) AMPTP will lose billions of dollars but the members of SAG-AFTRA will lose more.

c) SAG-AFTRA will either receive everything that they are demanding, or the industry will shut down indefinitely.

d) If SAG-AFTRA and AMPTP are equally strong, they will agree to split the difference in their demands.

Hollywood’s High-Stakes Strike: Actors and Writers

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