WGA’s Compensation Battle Heightened by Rampant Inflation, Low Scale Hikes in Recent Years
variety.comGene Maddaus Senior Media Writer The conversation about a new WGA contract has centered on the streaming economy, and how writers can make their way in a world of shorter TV seasons and slackening demand for shows.
But setting industry trends aside, there’s another major factor that’s putting the squeeze on writers: inflation. The WGA last updated its contract minimums in 2020, just before inflation soared to its highest levels in 40 years.
The contract provided annual increases in weekly minimums of 1.5%, 2.5% and 2.25%. With inflation climbing as high as 9.1% in 2022, and still stuck at 6%, those nominal increases have turned out be represent sharp cuts in terms of buying power.
The WGA has already indicated that it is seeking well above the standard 2%-3% annual raises. That should come as no surprise — unions across the country are negotiating first-year wage increases on the order of 5%-7%, the highest in decades, according to an analysis by Bloomberg Law.
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