The Directors Guild has reached a four-year interim agreement with Hollywood studios. The deal includes higher employer contributions to the health plan, new protections for generative artificial intelligence, and a lobbying commitment for a federal tax incentive.
The Guild announced the details in a message sent to its members. The message also shared a letter from Guild President Christopher Nolan praising the negotiation committee's work as "extraordinary."
Significant Increase in Health Plan Contributions
One of the key points of the agreement is an approximately 25% increase in employer contributions to the health plan. The contribution cap will rise by 62.5% for film directors and by 37% for UPMs (Unit Production Managers).
The Guild argued that the health plan must be protected against rising healthcare costs. It was also noted that the plan incurred a $43 million loss in the 2023 and 2024 fiscal years. The contract will include modest changes in eligibility thresholds, monthly premiums, and deductibles; these details will be further addressed by the health plan administrators.
New Provisions for Artificial Intelligence
The interim contract adds new clauses building on the first supplemental protocol on generative AI established in 2023. It explicitly states that images produced by AI will be considered under the same creative control domain as those captured by cameras.
Employers will be required to notify in advance if AI will be used on a project. Additionally, if a member’s work is licensed to train a commercial generative AI system, the Guild must be notified and given the right to request discussions.
The AMPTP has also agreed to fund a "skill development" program to help members adapt to AI workflows.
Tax Incentives and Employment Measures
The agreement includes a commitment from studios and broadcasters to send senior executives to lobby for a federal tax incentive in the US. This effort will be coordinated alongside traditional industry lobby groups and unions.
The Guild had expressed serious concerns in recent months due to a decline in work. Before negotiations began, Nolan stated that employment in television had dropped by 35% in 2024, and in film by between 8% and 12%.
Another provision aims to restrict "related appointments" that allow individuals without prior directing experience but with other production roles to more easily transition into directing positions in TV productions.
The parties will also meet to discuss the issue of non-US directors hired by American companies for work outside the US or Canada. The Guild argues this situation exposes its US members to competition with lower wages.
As part of the agreement, a bulletin was adopted that prohibits employers and talent representatives from explicitly excluding DGA directors from work outside the US or in Canada.
Approval Process with Members
The Guild’s national board unanimously approved the contract language. The text will now be opened for member review and will be voted on during a process ending on June 25.
The Guild, with its 19,500 members, will assess whether the agreement addresses their concerns. Negotiations were led by National Executive Director Russell Hollander on behalf of the Guild, and by AMPTP President Gregory Hessinger on behalf of the studios and broadcasters.
