Hollywood Strikes: Could Newsom, Bass or Biden be a Mediator?
Hollywood Strikes: Could Newsom, Bass or Biden be a Mediator?
The Writers Guild of America is currently engaged in negotiations with studios, networks, and streamers to resolve the ongoing Hollywood strikes. The main issues being discussed include wages, residuals from streaming content, and the use of AI. Meanwhile, the SAG-AFTRA strike has no talks scheduled at the moment. California’s major Democratic lawmakers, including those vying for Dianne Feinstein’s Senate seat, have shown support for the striking workers. However, Governor Gavin Newsom and LA Mayor Karen Bass have remained neutral, although there have been indications of behind-the-scenes conversations. Newsom has financial leverage in these negotiations due to the tax incentives offered to studios and producers in California. President Joe Biden has also expressed sympathy towards the actors involved in the strikes.
Financial Leverage of Governor Gavin Newsom
Gavin Newsom, as the Governor of California, holds significant financial leverage in the negotiations between the Writers Guild of America and the studios. California offers substantial tax incentives to studios and producers, which gives Newsom the power to negotiate. The studios have recently requested further increases in tax credits, highlighting the fact that Southern California is still the base of operations for the entertainment industry. Newsom’s connections to the industry, including his role in appointing individuals to the California Film Commission and his appointment of Disney CEO Bob Iger to lead a COVID task force, further strengthen his position in these negotiations. Additionally, Newsom received campaign contributions from Netflix founder Reed Hastings, indicating his ties to the entertainment industry.
The Role of Governor Gavin Newsom and Mayor Karen Bass
While Governor Gavin Newsom has connections to the entertainment industry and financial leverage in the negotiations, he has chosen to remain neutral and has not directly involved himself in the talks. It is speculated that he may be cautious about publicly taking sides in case he is called upon to mediate and end the dispute. However, Newsom has expressed his willingness to get involved if invited. On the other hand, LA Mayor Karen Bass does not have significant financial incentives to offer the studios like Newsom does. Both Newsom and Bass have hinted at behind-the-scenes conversations, but the extent of their power to end the strikes remains unclear.
President Joe Biden has shown sympathy towards the actors involved in the strikes at the national level.
