Business
Three Animation Guild negotiating committee members oppose studio deal over AI
As Hollywood grapples with worries about the threat of artificial intelligence, the union that represents animators is facing dissent over its latest deal with major studios.
Three Animation Guild negotiations committee members said they will vote “no” on a tentative contract the guild reached with their employers, saying the AI protections they wrangled don’t go far enough.
“I believe the A.I. and outsourcing protections in this contract are not strong enough — and in my opinion — could lead to the loss of a lot of jobs,” wrote negotiations committee member Michael Rianda, who directed the animated film “The Mitchells vs. the Machines,” on Instagram. “Real members lives could be hurt by not having these protections.”
The Animation Guild’s executive board disputed any notion that the deal lacks support, saying in a statement that more than 90% of the negotiations committee table team backed the tentative agreement and recommend ratification.
“Generative AI is a complex and deeply concerning issue for our industry, and we recognize the passion and apprehension it has sparked among our members,” the executive board said. “It’s also important to understand that union contracts alone cannot solve this challenge, as seen in the recent contracts of other entertainment unions with far larger memberships and leverage than our own.”
The animation guild reached an agreement with the Alliance of Motion Picture and Television Producers, which represents major studios, last month. Animation Guild members will have until the end of Dec. 22 to vote on the contract.
The guild touted several gains in the three-year deal, including increases to health and pension funds and wage increases of 7% in the first year, 4% in the second and 3.5% in the third. The pact features AI protections that include notification and consultation provisions; protections for remote work; and the recognition of Juneteenth as a holiday.
The guild represents more than 6,000 artists, technicians, writers and production workers in the animation industry.
“After weeks of negotiations that covered months in the calendar, I am very proud of the agreement that we reached with the studios for our new contract,” Steve Kaplan, business representative for the Animation Guild, said in a statement when the deal was struck. “Not only have we seen the inclusion of the advancements in the industry realized by the other Unions and Guilds, but we were able to address industry-specific issues in a meaningful way.”
Rianda said in his Instagram post that the guild did not secure staffing minimums “to protect crew sizes from AI job loss.” If the tentative contract is not passed by guild members, the union will go back to the table with AMPTP. If those talks are unsuccessful, the union could call for a strike authorization vote.
“Voting ‘No’ could give us the leverage we need to actually get substantial gains,” wrote Kelly Lynne D’Angelo, a television and musical writer, who also was on the guild’s negotiations committee, on Bluesky. “Does it mean we may lose other things negotiated? Yes. But do those things trump more needs in A.I., Outsourcing, and Staffing Minimums? That’s YOUR call to make.”
Multiple union locals representing Hollywood’s below-the-line workers have pushed for overall minimum staffing requirements but have gotten little traction. The Animation Guild’s tentative contract does include a minimum staffing provision with guaranteed employment length for animation writers. The Writers Guild of America managed to secure minimum staffing protections in TV writers rooms last year after going on strike.
Many Hollywood workers are concerned about potential job losses from artificial intelligence. Proponents of AI say that the technology could help bring costs down, give freedom to test bold ideas and speed up production.
A study released earlier this year estimated 62,000 entertainment jobs could be lost to AI within the next three years and work, including roles in 3-D modeling, character and environment design. The study was commissioned by the Animation Guild, the Concept Art Assn., the Human Artistry Campaign and the National Cartoonists Society Foundation.
Those concerns have boosted interest from workers in joining the guild, also known as IATSE Local 839. The Times reported that from December 2021 to December 2023, nearly 1,000 animation professionals from a dozen different studios were cleared to unionize under the Animation Guild, which was founded in 1952.
Committee member Joey Clift, a writer on Netflix’s “Spirit Rangers,” said that AI protections were among the top priorities for members, but the tentative contract falls short.
“We fought tooth and nail and received a few small AI protections in this contract, but these aren’t the strong, common sense AI guardrails we need to keep animation workers protected,” wrote Clift on Bluesky , adding that he plans to vote “no.”
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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