Guild Reveals New Contract, AI Protections Still a Challenge

Published Date : 05/12/2024 

The Animation Guild has released the full terms of its new contract with major studios, explaining why it couldn't ban AI, despite members' concerns. 

The Animation Guild has released the full terms of its new contract with the major studios, along with an honest explanation of why it couldn't do more to protect against artificial intelligence (AI). The union, which represents about 5,000 animators, technicians, and writers, reached a tentative agreement on November 23 after three months of negotiations. While the deal includes certain guardrails around AI, it does not allow animators to opt out of using it if their job requires it, nor can they prevent their work from being used to ‘train’ AI models.

After the memorandum of agreement was published on Tuesday night, some members expressed discontent with the deal. Shion Takeuchi, creator of the Netflix show 'Inside Job,' argued there are 'no substantive protections' against AI. 'In this MOA there is nothing to stop the studios from gutting the staff,' she said via text. 'We are chattel to them.'

The agreement does not include minimum staffing levels for animators and other craftspeople, which was a key issue. However, it does provide a minimum of three writers for animated TV shows, with certain exceptions. The deal also includes significant gains in other job categories, such as a provision establishing 'pay equity' for color designers, a traditionally female-dominated craft.

'We did the best we could,' said Teri Hendrich Cusumano, a union vice president who served on the negotiating committee. 'It was definitely a long, drawn-out process. From my point of view, it felt like we bled them dry at the table. There really wasn’t much left to gain.'

The agreement comes amid an industry-wide slowdown, coupled with deep fears about AI and outsourcing. The guild has issued reports warning that AI could lead to a 'massive displacement of jobs.' Sam Tung, a member of the guild’s negotiating committee and its AI task force, said the deal requires notification and consultation, which will allow members to decide with open eyes whether they want to participate in a project that makes use of AI.

'You get the best deal you think you can get with the leverage you have,' Tung said. 'I would like to see more, but I think this is the best we were able to get right now.' The membership must now vote on whether to ratify the agreement. Some members are expected to challenge the leadership at a series of virtual town halls, though it is not clear there is enough discontent to threaten ratification.

Jobs have been scarce since the end of the peak TV era, leading to a general sense of unease among the membership. 'Everyone I talk to is angry and desperately concerned about the future and their ability to make a living wage in one of the most expensive cities in the country,' Takeuchi said. 'I have spoken with executives who have looked me dead in the eye and said they were experimenting with AI in the hopes of completely automating storyboarding — eliminating an entire craft! — without blinking.'

Some members have pushed for an outright ban on AI in animation, which some see as a form of piracy. In an FAQ, the guild said that such a proposal would not have been workable. 'We could not propose that GenAI simply be banned from use in signatory studios not only because the Producers would never have agreed to that, but because it would also result in the work being sent to non-union workers, without the protection or benefits of a Collective Bargaining Agreement,' the union stated.

The Alliance of Motion Picture and Television Producers, which bargains on behalf of the studios, has reached agreements on AI over the last year with unions representing directors, writers, actors, musicians, and below-the-line craftspeople. 'No entertainment union achieved protections entirely stopping the use of GenAI,' the Animation Guild noted in its FAQ.

The Animation Guild is part of the International Alliance of Theatrical Stage Employees (IATSE), which obtained AI protections in its deal in June, among which was a provision requiring that if a worker loses their job due to AI, they are entitled to severance and retraining. Given the unique threats to animators, the Animation Guild went into talks in August looking to layer additional protections on top of that deal. The guild sought to allow members to opt out of AI training and to prevent studios from making willingness to use AI a 'condition of employment.' According to the guild, the training proposal was a 'non-starter' for the AMPTP, and it was withdrawn.

The guild hung on to its 'condition of employment' proposal until the end of bargaining, but 'the producers never budged,' the union said in its FAQ. The Writers Guild of America was able to win such a provision last year, but the Animation Guild said it was hemmed in by a long-standing clause allowing producers to implement 'technological changes.' Instead, the union got a provision stating that a studio will have to give written notice if AI will be used in a particular job.

'There’s no way we were going to tell the studios, 'Don’t use this software,'' said Roma Murphy, a writer who served on the negotiating committee. 'We only would have had control over what our members are asked to do. Because of that, our efforts were more about putting up guardrails rather than staunching the flow of GenAI into the industry as a whole.' The union also got language stating that any AI use will not undermine pay or credit, similar to a provision won last year by the WGA. In most other respects, the AI terms are similar to those in the IATSE Basic Agreement.

AI still faces legal uncertainty, especially with regard to the ability to copyright AI-generated work. Union leaders are looking to the courts and legislatures to offer additional levers to protect creative workers. Julia Prescott, a writer who served on the negotiating committee, said she remains concerned about the threat AI poses across Hollywood, especially for animation. But she said she’s hopeful the deal means that producers can't use it without workers’ knowledge, which will put a spotlight on the issue.

'That sets the table for us to continue fighting,' she said. The union also made 'very aggressive' proposals for an overall staffing minimum and held on to that until the very end of bargaining, according to the FAQ. In the end, however, the union was only able to get the three-writer minimum, which can be waived if a solo writer or a writing team are hired to write an entire show.

The agreement also provides pay increases of 7%, 4%, and 3.5% — identical to those won earlier by SAG-AFTRA and IATSE. 

Frequently Asked Questions (FAQS):

Q: What are the key terms of the new contract between the Animation Guild and the studios?

A: The new contract includes certain guardrails around AI, a minimum of three writers for animated TV shows, and pay equity for color designers. However, it does not allow animators to opt out of using AI if required, nor can they prevent their work from being used to train AI models.

Q: Why couldn't the Animation Guild ban AI in the new contract?

A: The guild could not propose a ban on AI because the studios would not have agreed to it, and it would have resulted in the work being sent to non-union workers without the protection or benefits of a Collective Bargaining Agreement.

Q: What are the main concerns of guild members regarding AI?

A: The main concerns include the potential for massive job displacement, the lack of substantive protections against AI, and the fear that AI could lead to the complete automation of certain crafts like storyboarding.

Q: What legal uncertainties surround AI in the animation industry?

A: There are legal uncertainties regarding the ability to copyright AI-generated work, which is a concern for creative workers and unions.

Q: What are the next steps for the Animation Guild's membership?

A: The membership must now vote on whether to ratify the agreement. Some members are expected to challenge the leadership at virtual town halls, but it is not clear if there is enough discontent to threaten ratification. 

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