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Both SAG-AFTRA and Hollywood studios could be extending negotiations to avoid a strike.

The current contract expires at midnight on July 1, but that deadline could be extended to July 7.

If no deal is made, either with the contract or extension, by Friday, members of the Screen Actors Guild would hit the picket lines as soon as the first of the month.

Earlier this week, more than 300 actors signed a letter to SAG-AFTRA leadership urging them to fight for a strong deal rather than compromise too soon.

The union is pushing for Hollywood studios to restrict the use of AI and secure higher streaming residuals for its members. Artificial intelligence has become a major point of contention in talks. Justine Bateman sounded the alarm over six weeks ago about how important of a topic it is in Hollywood.

In May, the SAG-AFTRA board asked members to authorize a strike ahead of negotiation talks with the Alliance of Motion Picture and Television Producers.

“An affirmative vote does not mean a strike would necessarily happen, but it would allow the National Board to call one if deemed necessary during the negotiations process,” the board announced in a statement on the SAG-AFTRA website. “The action comes following a unanimous agreement by the TV/Theatrical negotiating committee that the strike authorization would give the union maximum bargaining leverage as it enters this round of negotiations with the AMPTP.”

The looming strike comes as members of the Writers Guild of America continue their strike, which began in early May. Right now, no deal has been made between the WGA and the studios.

Meanwhile earlier this month, the Directors Guild of America reached a tentative deal with the studios. The DGA ratified the contract a week ago, with 87% of members approving the deal with a 41% turnout, according to Variety.