Newsom Vetoes Striking Workers' Benefits, Hollywood Union Drama Ensues
California Governor Gavin Newsom has recently vetoed a bill intended to put in place unemployment benefits for striking workers. This legislation had the backing of both the Writer's Guild of America (WGA) and Screen Actor's Guild‐American Federation of Television and Radio Artists (SAG-AFTRA), entities currently working with their members through strike actions. Newsom's decision was paired with a statement proclaiming a need for caution in expanding the state’s unemployment insurance (UI) benefits due to an already unstable trust fund.
In a detailed report, he outlined the risk of increased UI debt to California, projected to hit close to $20 billion by year-end, and gave reasoning for the potential downfall of adding to this number. The state, as per the governor's remarks, is accountable for interest expenses on federal UI loans and has already divvied up $362.7 million, with an expected $302 million due this month.
Governor Newsom's veto remarkably coincides with the recent tentative agreement between the WGA and Alliance of Motion Picture and Television Producers (AMPTP) ending their strike whilst SAG-AFTRA plans to return to their bargaining tables with studios every week. Prior to the veto, the debated bill had garnered substantial approval in the state senate with votes tallying at 27 for with 12 against, with a similarly positive result in the Assembly of 59 for and 18 against.
The governor's decision undeniably ruffled feathers, particularly among the states' organized labor parties. Undeterred by his expressed admiration for striking workers, the WGA West has deemed Newsom's veto as a snub to their members who had held out against companies attempting to push writers into financial desolation for a total of 148 days. The WGA also pledged their unwavering support for the bill transitioning into law in the future.
With an overarching zeitgeist of America favoring unions and strikes, the veto is seen as inconsistent with the public sentiment, as claimed by Lorena Gonzalez Fletcher of the California Labor Federation. State Sen. Anthony Portantino also opposes the decision, stating how the bill could have facilitated a sense of security amongst worker families.
- - -
While Newsom's move has undeniably introduced ripples of discontent, it's the Hollywood version of putting brakes on a runaway train. In a world of furloughs and strikes, the thought of expanding unemployment benefits almost feels like a Hollywood plot twist, albeit one facing an economic cliffhanger.
Yes, strikes are an established part of the labor discourse. And yes, a safety net is much needed, especially now when the so-unsightly Hollywood glamour is replaced by an image of picket lines. But it's also important to remember that, like any blockbuster movie, our public institutions have a budget too.
Newsom makes a compelling protagonist that, at first glance, may appear to be the villain of the piece, shaking up the status quo, shooting down the safety measure proposed by the bill. But take a closer look, and you might find an economic strategist playing 4D chess. There’s as much drama in the halls of Sacramento as you’d find on a set of a prime-time legal thriller.
Moreover, let's note how art is imitating life with WGA president Meredith Stiehm playing a key role in real-life drama, reinforcing a narrative often portrayed on our screens – 'a difficult but essential fight for working people's rights.'
The show of solidarity among entertainment’s unions — WGA, SAG-AFTRA, and others — could be the start of a new season in Hollywood labor relations. It may be unsettling for studios, but it could also bring about long-term changes that affect the landscape of the industry. It's just another episode in a long running series called, "Hollywood: where Drama meets Real Life."
And so, the curtain falls on another thrilling day in Tinseltown. While the vetoed bill diminishes the cliffhanger, the true endgame remains the question—whether this story will usher in a new era of Hollywood labor law or remain just another script left unproduced. After all, in this industry, even legislation can feel like spec work.
A seasoned entertainment industry professional, Addison Prentice brings over two decades of diverse experience to Hollywood Dynamics.
Prentice has spent over six years as a creative professional in Los Angeles, including as a professional content writer for Meta. His deep understanding of the entertainment industry's intricacies makes him a reliable source for insights and trends.