The Screen Actors Guild (SAG-AFTRA) union agreed on Friday to extend contract negotiations with Hollywood studios, namely Netflix and Disney, in order to raise wages and improve working conditions for writers and actors who are struggling to cope with the rising cost-of-living.

A strike that was scheduled to be held on June 12 is now averted due to the extension. The union, representing over 160,000 writers and actors, warned that the strike would bring to a halt nearly all US film and telecision productions. 

Actors, like writers alike, have been demanding pay increases to counter inflation and guarantees for their future livelihoods. They have also been calling for "residuals" to be paid -- meaning receive compensation for every time an actor is starred in a film or show. 

But streamers such as Netflix and Disney+ never disclose the total number of views for their shows and pay the same flat rate for every show on their platforms. 

"Residuals are our livelihood in between projects," 48-year-old Shon Lange whose resume includes small roles on television shows such as "NCIS: Los Angeles" and "The Terminal List," told AFP. 

"For those of us who aren't as lucky to be going from project to project yet, residuals put food on the table, they help put my kid in school. So it's very important."    

SAG-AFTRA and the AMPTP have agreed to an extension of the 2020 TV/Theatrical Contracts. The agreements will now expire on July 12, at 11:59 pm PT. The parties will continue to negotiate under a mutually agreed upon media blackout.https://t.co/k7YYwUcmjs

— SAG-AFTRA (@sagaftra) July 1, 2023

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Over the week, hundreds of actors, including Oscar winners Meryl Streep and Jennifer Lawrence, signed an open letter stating their intention to strike unless the union is able to strike a "transformative deal."  

The showbiz industry, the letter states, is at an "unprecedented inflection point."  

Concerns have also been raised with regard to the use of artificial intelligence, with actors demanding that guarantees be provided to regulate its future use in the film industry. 

"We need to modernize the contracts for new technologies," 52-year-old actress Kim Donovan told AFP, saying she was worried about studios using the likeness or voice of an actor without offering compensation.    

A-list actors "have the bigger voices -- we need their support," she said. "Most actors have to live from gig to gig."

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