Business
Hollywood unions are facing an uphill battle against Trump, AI and the slowdown
Video game performers. Visual effects artists. Animation workers. Intimacy coordinators.
More than a year after overlapping strikes by Hollywood writers and actors that rattled the entertainment industry, many technicians and craftspeople who operate outside of the spotlight are pressing their own demands for a better deal.
The sustained unrest among entertainment workers has added to the volatility that has gripped a film and TV business still recovering from the pandemic, prior labor disruptions and a persistent industry contraction.
The labor discord has been fueled by several forces, including the rising cost of living in Southern California, the outsourcing of jobs to other states and countries and the spread of artificial intelligence technology that many see as a threat to jobs.
It’s unclear, however, how the major media and entertainment companies will respond to the demands. Studios and other firms are under intense pressure to cut costs in an uncertain market that’s undergoing rapid change. And the election of Donald Trump, whose administration is expected to be generally pro-business, could give media executives latitude to take a harder line in bargaining.
“Clearly there’s going to be less protections for workers and less regulatory oversight for business practices going forward,” said David Smith, professor of economics at the Pepperdine Graziadio Business School. “When that goes into effect and whether that is a priority for the new Trump administration are open questions.”
Driving much of the labor tensions is the fear of AI, which many studio executives see as a necessary way to save money and stay ahead technologically.
AI is the biggest issue in the ongoing standoff between video game companies and performers covered by SAG-AFTRA, who’ve been on strike since July.
SAG-AFTRA is seeking a contract that will require game developers to obtain informed consent and compensate video game performers when using the technology to digitally replicate their voices, movements or likenesses.
The game companies have said that their AI proposal already contains robust protections that would require employers to seek prior consent and pay actors fairly when cloning their performances.
But the union maintains that the proposed language is not strong enough to protect on-camera performers, whose job is often to disappear into the characters they bring to life.
“We have worked hard to deliver proposals with reasonable terms that protect the rights of performers while ensuring we can continue to use the most advanced technology to create great entertainment experiences for fans,” said Audrey Cooling, a spokesperson for the game companies, in a statement earlier this year.
The union and the game developers most recently convened in late October for a few bargaining sessions but the walkout continues.
“All performers need AI protections,” said Duncan Crabtree-Ireland, national executive director and chief negotiator of the Screen Actors Guild-American Federation of Television and Radio Artists. “Everyone’s at risk, and it’s not OK to carve out a set of performers and leave them out of AI protections.”
All unions representing entertainment workers — including actors, writers, directors and crew members — have sought AI regulations in their latest contracts in an effort to shield their members from job displacement before it’s too late.
“All of these new applications for the creative content have changed the way that we value labor and the people involved,” said Sarah Odenkirk, an attorney for artists and lecturer at USC. “The unions’ jobs are to protect their members, and that becomes a complicated process when you’re talking about fundamental changes in technology and the delivery systems for content.”
Disputes over AI protections have also fueled tensions in Hollywood’s close-knit animation community. The issue remains a top priority of the Animation Guild, which resumed contract negotiations with the Alliance of Motion Picture and Television Producers last week. The union’s current contract, which originally expired July 31, was extended to Dec. 2.
Animation has powered some of the biggest box office hits of the last few years. But animators are widely seen as especially vulnerable to AI. In recent petitions to studios, animation workers have described the technology as an existential threat.
“The work that entertainment workers generate is so available for machine learning to steal,” said Allison Smartt, a field organizer at the animation guild. “Think about how that would make you feel.”
Visual effects workers, who play a pivotal role in bringing movies and TV shows to life, have also been clamoring for change.
Over the past few years, VFX artists have been unionizing under IATSE at a rapid pace. Staffers at companies such as Disney and Marvel have taken steps to secure their first contracts.
Scott Ross, who ran Industrial Light & Magic in the 1980s and was a founder of Digital Domain, says what’s motivating modern VFX workers to unionize is the sense that they’re “not given their due” by much of Hollywood.
“I’ve said it for years, and I’ll say it again: The new movie stars are the visual effects in the movie,” Ross said. “That’s what puts people’s butts in the seats. That’s what the marketing is about.”
The latest group to unionize are intimacy coordinators, a new category of workers who guide actors through sensitive material on sets. They voted unanimously in favor of joining SAG-AFTRA this month.
Erin Tillman, a sex educator and intimacy coordinator who has worked on “Yellowstone” and “Days of Our Lives,” said that intimacy coordinators and production assistants are often the only non-union workers employed on union sets.
“Why shouldn’t we get the same thing that all these other positions get when we’re literally taking care of the safety and well-being of performers at their most vulnerable?” Tillman said. “We just want to feel the same level of safety and be compensated in a way that feels in alignment with other crew positions on sets.”
The labor disquiet has been further fueled by a bleak jobs market.
California, where much of the unionized entertainment workforce resides, has been hit particularly hard, and many professionals have been out of work for more than a year.
At the same time, entertainment companies have been increasingly outsourcing production — flocking to the United Kingdom, Central Europe and other international destinations in pursuit of generous tax incentives. California Gov. Gavin Newsom recently proposed a significant boost in state tax credits to address the problem.
Last month, outgoing Sony Pictures CEO Tony Vinciquerra partially blamed new labor contract terms and higher below-the-line wages for “forcing productions out” of the United States at Mipcom, a TV industry convention held in Cannes. The effect of the strikes has been “far more severe … than anyone understands,” Vinciquerra said at the event.
“We tried to convince [the unions], we tried to talk to the unions about what … we thought would happen, and now it is happening,” he said. Other entertainment industry leaders have privately expressed similar frustrations.
But Crabtree-Ireland rebuked Vinciquerra’s remarks as “a cynical attempt to manipulate workers while masking the industry’s own business failures.” He told The Times that several executives at rival studios reached out to tell him they disagreed with Vinciquerra’s comments.
At a recent programming presentation in West Hollywood, HBO Chief Executive Casey Bloys said that contract terms are not “fundamentally going to change how we approach making shows.” He acknowledged, however, that production costs and tax incentives are always a factor when deciding whether to shoot a project in “Atlanta versus L.A. versus Canada.”
Times Staff Writer Meg James contributed to this report
Business
Nike to Cut 1,400 Jobs as Part of Its Turnaround Plan
Nike is cutting about 1,400 jobs in its operations division, mostly from its technology department, the company said Thursday.
In a note to employees, Venkatesh Alagirisamy, the chief operating officer of Nike, said that management was nearly done reorganizing the business for its turnaround plan, and that the goal was to operate with “more speed, simplicity and precision.”
“This is not a new direction,” Mr. Alagirisamy told employees. “It is the next phase of the work already underway.”
Nike, the world’s largest sportswear company, is trying to recover after missteps led to a prolonged sales slump, in which the brand leaned into lifestyle products and away from performance shoes and apparel. Elliott Hill, the chief executive, has worked to realign the company around sports and speed up product development to create more breakthrough innovations.
In March, Nike told investors that it expected sales to fall this year, with growth in North America offset by poor performance in Asia, where the brand is struggling to rejuvenate sales in China. Executives said at the time that more volatility brought on by the war in the Middle East and rising oil prices might continue to affect its business.
The reorganization has involved cuts across many parts of the organization, including at its headquarters in Beaverton, Ore. Nike slashed some corporate staff last year and eliminated nearly 800 jobs at distribution centers in January.
“You never want to have to go through any sort of layoffs, but to re-center the company, we’re doing some of that,” Mr. Hill said in an interview earlier this year.
Mr. Alagirisamy told employees that Nike was reshaping its technology team and centering employees at its headquarters and a tech center in Bengaluru, India. The layoffs will affect workers across North America, Europe and Asia.
The cuts will also affect staffing in Nike’s factories for Air, the company’s proprietary cushioning system. Employees who work on the supply chain for raw materials will also experience changes as staff is integrated into footwear and apparel teams.
Nike’s Converse brand, which has struggled for years to revive sales, will move some of its engineering resources closer to the factories they support, the company said.
Mr. Alagirisamy said the moves were necessary to optimize Nike’s supply chain, deploy technology faster and bolster relationships with suppliers.
Business
Senate committee kills bill mandating insurance coverage for wildfire safe homes
A bill that would have required insurers to offer coverage to homeowners who take steps to reduce wildfire risk on their property died in the Legislature.
The Senate Insurance Committee on Monday voted down the measure, SB 1076, one of the most ambitious bills spurred by the devastating January 2025 wildfires.
The vote came despite fire victims and others rallying at the state Capitol in support of the measure, authored by state Sen. Sasha Renée Pérez (D-Pasadena), whose district includes the Eaton fire zone.
The Insurance Coverage for Fire-Safe Homes Act originally would have required insurers to offer and renew coverage for any home that meets wildfire-safety standards adopted by the insurance commissioner starting Jan. 1, 2028.
It also threatened insurers with a five-year ban from the sale of home or auto insurance if they did not comply, though it allowed for exceptions.
However, faced with strong opposition from the insurance industry, Pérez had agreed to amend the bill so it would have established community-wide pilot projects across the state to better understand the most effective way to limit property and insurance losses from wildfires.
Insurers would have had to offer four years of coverage to homeowners in successful pilot projects.
Denni Ritter, a vice president of the American Property Casualty Insurance Assn., told the committee that her trade group opposed the bill.
“While we appreciate the intent behind those conversations, those concepts do not remove our opposition, because they retain the same core flaw — substituting underwriting judgment and solvency safeguards with a statutory mandate to accept risk,” she said.
In voting against the bill Sen. Laura Richardson, (D-San Pedro), said: “Last I heard, in the United States, we don’t require any company to do anything. That’s the difference between capitalism and communism, frankly.”
The remarks against the measure prompted committee Chair Sen. Steve Padilla, (D-Chula Vista), to chastise committee members in opposition.
“I’m a little perturbed, and I’m a little disappointed, because you have someone who is trying to work with industry, who is trying to get facts and data,” he said.
Monday’s vote was the fourth time a bill that would have required insurers to offer coverage to so-called “fire hardened” homes failed in the Legislature since 2020, according to an analysis by insurance committee staff.
Fire hardening includes measures such as cutting back brush, installing fire resistant roofs and closing eaves to resist fire embers.
Pérez’s legislation was thought to have a better chance of passage because it followed the most catastrophic wildfires in U.S. history, which damaged or destroyed more than 18,000 structures and killed 31 people.
The bill was co-sponsored by the Los Angeles advocacy group Consumer Watchdog and Every Fire Survivor’s Network, a community group founded in Altadena after the fires formerly called the Eaton Fire Survivors Network.
But it also had broad support from groups such as the California Apartment Association, the California Nurses Association and California Environmental Voters.
Leading up to the fires, many insurers, citing heightened fire risk, had dropped policyholders in fire-prone neighorhoods. That forced them onto the California FAIR Plan, the state’s insurer of last resort, which offers limited but costly policies.
A Times analysis found that that in the Palisades and Eaton fire zones, the FAIR Plan’s rolls from 2020 to 2024 nearly doubled from 14,272 to 28,440. Mandating coverage has been seen as a way of reducing FAIR Plan enrollment.
“I’m disappointed this bill died in committee. Fire survivors deserved better,” Pérez said in a statement .
Also failing Monday in the committee was SB 982, a bill authored by Sen. Scott Wiener, (D-San Francisco). It would have authorized California’s attorney general to sue fossil fuel companies to recover losses from climate-induced disasters. It was opposed by the oil and gas industry.
Passing the committee were two other Pérez bills. SB 877 requires insurers to provide more transparency in the claims process. SB 878 imposes a penalty on insurers who don’t make claims payments on time.
Another bill, SB 1301, authored by insurance commissioner candidate Sen. Ben Allen, (D-Pacific Palisades), also passed. It protects policyholders from unexplained and abrupt policy non-renewals.
Business
How We Cover the White House Correspondents’ Dinner
Times Insider explains who we are and what we do, and delivers behind-the-scenes insights into how our journalism comes together.
Politicians in Washington and the reporters who cover them have an often adversarial relationship.
But on the last Saturday in April, they gather for an irreverent celebration of press freedom and the First Amendment at the Washington Hilton Hotel: The White House Correspondents’ Association dinner.
Hosted by the association, an organization that helps ensure access for media outlets covering the presidency, the dinner attracts Hollywood stars; politicians from both parties; and representatives of more than 100 networks, newspapers, magazines and wire services.
While The Times will have two reporters in the ballroom covering the event, the company no longer buys seats at the party, said Richard W. Stevenson, the Washington bureau chief. The decision goes back almost two decades; the last dinner The Times attended as an organization was in 2007.
“We made a judgment back then that the event had become too celebrity-focused and was undercutting our need to demonstrate to readers that we always seek to maintain a proper distance from the people we cover, many of whom attend as guests,” he said.
It’s a decision, he added, that “we have stuck by through both Republican and Democratic administrations, although we support the work of the White House Correspondents’ Association.”
Susan Wessling, The Times’s Standards editor, said the policy is a product of the organization’s desire to maintain editorial independence.
“We don’t want to leave readers with any questions about our independence and credibility by seeming to be overly friendly with people whose words and actions we need to report on,” she said.
The celebrity mentalist Oz Pearlman is headlining the evening, in lieu of the usual comedy set by the likes of Stephen Colbert and Hasan Minhaj, but all eyes will be on President Trump, who will make his first appearance at the dinner as president.
Mr. Trump has boycotted the event since 2011, when he was the butt of punchlines delivered by President Barack Obama and the talk show host Seth Meyers mocking his hair, his reality TV show and his preoccupation with the “birther” movement.
Last month, though, Mr. Trump, who has a contentious relationship with the media, announced his intention to attend this year’s dinner, where he will speak to a room full of the same reporters he often derides as “enemies of the people.”
Times reporters will be there to document the highs, the lows and the reactions in the room. A reporter for the Styles desk has also been assigned to cover the robust roster of after-parties around Washington.
Some off-duty reporters from The Times will also be present at this late-night circuit, though everyone remains cognizant of their roles, said Patrick Healy, The Times’s assistant managing editor for Standards and Trust.
“If they’re reporting, there’s a notebook or recorder out as usual,” he said. “If they’re not, they’re pros who know they’re always identifiable as Times journalists.”
For most of The Times’s reporters and editors, though, the evening will be experienced from home.
“The rest of us will be able to follow the coverage,” Mr. Stevenson said, “without having to don our tuxes or gowns.”
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