Animation Industry on Edge: AI Threats, Layoffs, and Outsourcing Stalemate Pushes Talks to September

Negotiations between the Animation Guild (IATSE Local 839) and the Alliance of Motion Picture and Television Producers (AMPTP) have ended this week without a deal. According to reports, both parties plan to resume discussions in mid-September to reach a new three-year contract. These talks, which began on August 12, have yet to yield an agreement, and with the current Master Agreement set to expire on Friday, extensions will likely be needed during the interim.

The Animation Guild (TAG), representing approximately 5,000 workers, including artists, writers, technicians, and production employees, has been in discussions with the AMPTP over several pressing concerns. Among the issues at the forefront are the protection of jobs from the rise of generative AI, which could significantly impact the animation industry. TAG has been working alongside CAA and CVL Economics in recent months to assess the potential consequences, with their study predicting that as much as 29% of animation jobs could face disruption in the next three years due to advancements in AI.

Additional concerns have emerged during the negotiations, particularly around layoffs and outsourcing. TAG has noted that, according to internal surveys and anecdotal evidence, roughly one-third of its workforce has been laid off over the past year. Outsourcing continues to be a major issue as well, with many Los Angeles-based animation studios opting to send projects to facilities in Asia and Europe. These foreign studios often attempt to hire L.A. workers at lower pay rates, without the protections and benefits offered by the union.

The situation mirrors recent labor struggles seen across Hollywood, including the Writers Guild of America (WGA) and Screen Actors Guild-American Federation of Television and Radio Artists (SAG-AFTRA) strikes that resulted in significant disruptions within the entertainment industry. In response to the growing concerns, the Animation Guild held a “Stand With Animation” rally last weekend, showcasing solidarity among its members.

The broader IATSE community has also been engaged in labor discussions, with 13 Locals recently ratifying the IATSE Basic Agreement. Among those working under this agreement are members of key industry unions, such as the International Cinematographers Guild (Local 600), the Motion Picture Editors Guild (Local 700), and the Art Directors Guild (Local 800).

As bargaining efforts continue, it remains uncertain what September’s talks will bring, but the hope is to resolve these critical issues before the industry faces further disruptions.

Source: Variety