Sacrament.- The governor of California, Gavin Newsom, communicated with all the parts of the strikes that have affected hollywoodhis office said Wednesday, offering to help broker a deal to restart an industry that is crucial to sustaining the state’s economy amid signs of weakness.
So far, neither studio executives nor actors and writers have shown any formal interest in bringing Newsom to the negotiating table, said Anthony York, Newsom’s senior communications adviser. But York said that both Newsom and senior members of his administration have been in contact with all parties as the two strikes move deeper into the summer blockbuster season.
“It is clear that the parties are still far apart, but he is deeply concerned about the impact that a prolonged strike can have on the regional and state economy,” York said. In addition, he noted that “thousands of jobs depend directly or indirectly on getting Hollywood back to work,” including equipment, staff and catering.
For the first time in 63 years, Hollywood actors and screenwriters will be on strike at the same time. Luis Treto reports.
The last time writers went on strike more than a decade ago, the 100-day work stoppage cost the state’s economy an estimated $2 billion. The economic impact could be even greater this time now that the actors have joined the demonstrations. The strikes come after Newsom signed a state budget that included a deficit of more than $31 billion in part due to a slowdown in the technology sector, another of the state’s key industries.
Writers have been on strike since May and the actors joined them earlier this month. Both unions have concerns about how they will be paid in an era when fewer people are paying to go to the movies or watch cable TV in favor of streaming services. And they worry about how the rise of artificial intelligence will affect the creative process of how movies and TV shows are made and who gets paid to make them.
The Democratic governor first offered to help broker a deal in May, shortly after the writers’ strike began, saying he was sympathetic to their concerns about streaming and artificial intelligence.
Now in his last term in office, Newsom has worked hard to boost his national profile as he sets his sights on life after the governor’s office. He is widely considered a future presidential contender, although he has said that he has no plans to run. Any role for Newsom in helping to end the strikes halting one of the country’s most recognizable industries could bolster his status on the national stage.
Labor actions have set California on fire this summer, and it has become common for politicians and their allies to step in to broker deals. The new mayor of Los Angeles, Karen Bass, for example, helped broker an end to a strike by Los Angeles school staff. The Biden administration’s acting labor secretary, Julie Su, a former California labor leader, helped end a contract dispute at Southern California ports.
When asked about Newsom’s involvement, Bass spokesman Zach Seidl said in a statement that “this is a historic turning point for our city. … We continue to engage with labor leaders, directors of studies, elected leaders, and other affected parties to reach a fair and equitable solution.”
York declined to say who Newsom has spoken to, either the union or studio side. Representatives for the Screen Actors Guild, the American Federation of Television and Radio Artists and the Alliance of Motion Picture and Television Producers declined to comment.
Hollywood isn’t just a major economic engine in California, it’s also a fundraising powerhouse for most Democratic candidates, including Newsom. In 2021, when Newsom was facing a recall election that could have removed him from office, Netflix co-founder Reed Hastings donated $3 million to help defeat her. He has received minor contributions from executives at Disney, Sony and Lionsgate. Noted directors and producers like Stephen Spielberg and Chuck Lorre have also donated to his campaigns.
The short answer is pretty much every show in production, but there are specific types of shows that are already seeing the effects of the Writers Guild of America strike.
Newsom’s relationships with some of Hollywood’s most powerful executives could potentially help him in any negotiations over the strikes as he continues to champion workers’ causes. Newsom also has a connection to Hollywood through his wife, Jennifer Siebel Newsom, who used to be an actress and is now a documentary filmmaker.
Also this year, Newsom signed legislation to extend tax credits for film and television productions. The big change is that those tax credits will be refundable, which means that if a movie studio has credits that are worth more than it owes in taxes, the state will pay the studio the difference in cash.
