1 STAFF REPORT
DATE: August 13, 2024
TO: Justin Hess, City Manager
FROM: Courtney Padgett, Assistant City Manager
By: Cathryn LaBrado, Assistant to the City Manager
SUBJECT: Approval of a Letter Signed by all City of Burbank Council Members Encouraging a Timely and Mutually Acceptable Agreement Between the Screen Actors Guild -American Federation of Television and Radio Artists and 10 Video Game Companies
RECOMMENDATION
Forgo the customary second step report and a pprove a letter signed by all Council Members to the Screen Actors Guild-American Federation of Television and Radio Artists (SAG-AFTRA) and 10 Video Game Companies (Activision Productions Inc., Blindlight LLC, Disney Character Voices Inc., Electronic Arts Productions Inc., Formosa Interactive LLC, Insomniac Games Inc., Llama Productions LLC, Take 2 Productions Inc., VoiceWorks Productions Inc., and WB Games Inc.) encouraging a timely and mutually acceptable agreement.
BACKGROUND
On July 26, 2024, the actors' union SAG-AFTRA initiated a labor strike af ter more than 18 months of unsuccessful negotiations with 10 video game companies (listed above).
At the July 16, 2024, City Council meeting, Council Member Anthony requested a first step report on sending a letter from all five Council Members to SAG-AFTRA and 10 video game companies encouraging the organizations to come to a quick and fair agreement .
Due to the urgent nature of th e issue and the impact prolonged strikes may have on Burbank’s economy and entertainment industry, staff is foregoing the customary second step in the additional agenda item process and presenting a letter for approval from all five Council members to SAG-AFTRA and the 10 video game companies.
2 DISCUSSION
According to SAG -AFTRA, the strike involves more than 2,500 “off -camera voiceover performers, on-camera (motion capture, stunt) performers, stunt coordinators, singers, dancers, puppeteers, and background performers.” The most notable issue surrounding the negotiations is artificial intelligence (A.I.) protections for video game performers.
Ongoing strikes have the potential to significantly impact the entertainment industry and cause a ripple effect on ancillary industries that depend on film and television productions.
The halting of production could result in substantial revenue losses for studios, networks, and production companies. Additionally, thousands of employees may face layoffs or reductions in income, worsening the economic impact. While the precise economic impact on the city is still uncertain, the continuation of the strikes could have devastating consequences for both the local and global economy. The prolonged disruption to the entertainment industry may lead to further job losses, reduced investment, and an overall negative financial impact on businesses and individuals that rely on the industry's stability.
As of the writing of this report, additional negotiations have not been announced.
ENVIRONMENTAL REVIEW
This activity has no potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment, and as such, is not a “project” subject to the requirements of the California Environmental Quality Act (CEQA) 14 Cal. Code Regs § 15378.
FISCAL IMPACT
There is no fiscal impact associated with this report.
CONCLUSION
Staff recommends Council approve the attached letter encouraging SAG-AFTRA and 10 video game companies to work towards a mutually acceptable agreement.
ATTACHMENT
Attachment 1 – Draft letter