The Animation Industry in Crisis: Union Battles Over Outsourcing and AI
As the animation industry navigates turbulent waters, The Animation Guild, representing over 5,000 artists, writers, technicians, and production workers, finds itself at a critical juncture. On August 12, 2024, the union entered a new round of contract negotiations with major Hollywood studios and streaming platforms. The stakes are high, as the industry’s future is threatened by outsourcing and the growing impact of generative AI.
A Mother’s Worry and a Union’s Fight
Jeanette Moreno King, the president of The Animation Guild, has personal reasons to be concerned about the future of the industry. Her 17-year-old daughter dreams of working in animation, but instead of encouraging this ambition, Moreno King advises caution. “I can’t promise her that that’s going to be possible,” she says, reflecting the uncertainty that hangs over the industry.
The Animation Guild, which includes members who have worked on high-profile projects like Kung Fu Panda 4 and Wish, is grappling with an existential crisis. As the larger entertainment business faces a contraction, layoffs have become common at leading firms such as Netflix Animation, DreamWorks Animation, and Pixar. The union is particularly concerned about the outsourcing of jobs to foreign countries—a long-standing issue that continues to threaten the livelihoods of its members. Disney’s new non-union animation studio in Vancouver and DreamWorks Animation’s shift toward working with outside vendors are just a few examples of this troubling trend.
The Threat of Generative AI
Adding to the industry’s woes is the looming threat of generative AI. Jeffrey Katzenberg, co-founder of DreamWorks and former chairman of Walt Disney Studios, has predicted that AI could eliminate 90% of animation artist jobs. The potential impact of this technology is staggering, with the union estimating that 29% of animation jobs could be disrupted within the next three years, the duration of the union’s upcoming contract.
Generative AI, which can create content with minimal human input, poses a significant risk to roles such as sound editors, 3-D modelers, compositors, graphic designers, effects artists, and animators. While some argue that AI could simply be another tool for artists, much like computers were in the 1980s, the fear is that this time, the technology could lead to widespread job losses. Former Animation Guild president Tom Sito notes that while similar fears were raised when computers were introduced, the resulting computer-generated animation still required human artists and technicians. Whether AI will follow the same path remains to be seen.
Negotiating for Survival
In response to these threats, securing strong contract language around generative AI has become a top priority for The Animation Guild. The union has formed an AI Task Force and conducted surveys to understand how AI is being used in the industry. The goal is to ensure that artists have a say in how technology is used in the animation pipeline and to protect jobs from being replaced by AI.
Outsourcing is another major issue on the bargaining table. The Animation Guild has a history of battling this problem, having secured a protective clause against “runaway production” during its 1979 strike. However, the union later relinquished this protection in a 1982 work stoppage, and today, its main contract lacks significant outsourcing safeguards. The union is now seeking ways to fight back, possibly by advocating for “staffing minimums” to prevent shrinking crews and ensure that more work stays in-house.
The Human Cost
The impact of these industry changes is not just a matter of numbers; it’s about people’s lives and dreams. “These are people’s dreams that they’ve turned into careers that could be disappearing,” says writer and negotiations committee member Madison Bateman. The union is fighting not just for jobs, but for the livelihoods of its members.
In addition to AI and outsourcing, other craft-specific issues are also coming to the fore in these negotiations. For instance, Animation Guild writers are pushing back against the trend of being hired as freelancers rather than staff writers, a practice that has turned what was once a flexible arrangement into a “hardscrabble existence.” Timing directors, who are paid based on their work’s screentime rather than the hours they put in, are also demanding fairer compensation.
A Union in Crisis
These negotiations are happening at a time when the union is already struggling. On July 31, The Animation Guild revealed that about one-third of its working members had been laid off in the past year. This high level of unemployment could make members reluctant to take an aggressive stance in negotiations, fearing that it might lead to a strike and further financial hardship.
However, there is also a sense of urgency among the members. As Sam Tung, a storyboard artist and member of both the AI Task Force and the negotiations committee, notes, “I think people are engaged and activated and feel that times are dire.” This awareness could galvanize the union to push harder for the protections it seeks.
Conclusion
As The Animation Guild continues its negotiations, the future of the animation industry hangs in the balance. With outsourcing and AI threatening to upend the industry, the union’s fight is not just about securing better contracts—it’s about preserving the very fabric of the animation profession. Whether the industry will adapt to these challenges or be irrevocably changed remains to be seen, but one thing is clear: the outcome of these negotiations will have far-reaching implications for the future of animation.
