2ND UPDATE: Hollywood Turns To ‘ER’ Producer/Writer To Stop Long Strike
UPDATE: Federal Mediator Intervenes
The Writers Guild Of America’s 12,000 membership will begin picketing at the major movie studios and television networks later in the day Monday. They were told that all writing covered under WGA agreements must cease when the strike starts. No last-minute talks to avert the crippling walkout are yet scheduled for this weekend after three months of negotiations collapsed Wednesday night. The Writers Guild Of America said it was open to the offer of Los Angeles Mayor Antonio Villaraigosa to help settle the stand-off with the Alliance of Motion Picture & Television Producers. Some of Hollywood’s Big Media moguls may be trying to meet this weekend about the WGA strike set to start Monday. But insiders tell me that the studio and network bigwigs have declined Villaraigosa’s offer to mediate this weekend despite the WGA’s desire for him to intervene. The moguls also rejected an offer to sit down with the guild’s leadership this weekend. ”The CEOs are unwilling to even join the discussion at the bargaining table at all this weekend or ever,” one WGA source maintains. ”The only meeting they are willing to attend is one amongst themselves.” (See my previous, Hollywood Moguls Sound Strike Happy, See New TV Season As Dead Already.) UPDATE: I’ve just learned that the federal mediator has called the parties together for a meeting on Sunday at 10 am.
Instead, I’m told the moguls will continue to rely on their hired guns, namely AMPTP president Nick Counter, to maintain their hardline bargaining position, just as the WGA is sticking with its militant negotiators. Though the AMPTP said yesterday it was willing to negotiate all weekend, there looks to be no real possibility of a miraculous last-minute settlement happening now even though both sides are giving lip service to one. Agreed WGAE President Michael Winship: “This is not a decision we take lightly. In fact, we make it with great sadness. There is still time and a deal to be made before this strike begins. We urge the studios and networks to come back and bargain fairly.” But AMPTP’s Nick Counter issued this statement after today’s strike call. “We are very disappointed with their press conference and the action they took,” Counter said. “Their press conference was full of falsehoods, misstatements and inaccuracies.”
WGA West and East at 1:30 p.m. today announced the unanimous decision of the WGAW Board of Directors and the WGAE Council on the WGA Negotiating Committee’s recommendation to call a strike against film studios and television networks.
Making today’s statement was WGAW Prez Patric Verrone and WGAE Prez Michael Winship. The collective bargaining agreement between the WGA and AMPTP expired at midnight on October 31st. Everyone I’ve talked to on both sides believes this is going to be a long, bitter and painful labor action. The producers want to redraw the business plan for movies and television. The writers want to draw a line in the sand after failing to make lucrative agreements for each new technology. The main issues dividing the two camps is New Media and Internet residuals. The last WGA strike, in 1988, lasted 22 weeks and cost the Industry half a billion dollars.
There will be a WGA contract captains orientation Saturday to help them transition into strike captains and picket captains. They have planned to be on call all weekend. The writers, many of whom yesterday cleared out their desks at the studios and networks, have 4 days from the commencement of the strike to submit their screenplays and teleplays to the WGA’s controversial “Script Validation Program”. (See my previous, Rename It The ‘Fear Validation Program’) The guild’s email to members said, “We’ll be sending you information about our picket lines. Come out and show your solidarity. Your Contract Captain will be in touch with you. Be prepared to serve.”
How many picket lines and how strong a turnout the WGA can organize will be key to this strike because of the Screen Actors Guild and the teamsters. Even though the actors’ contract with AMPTP doesn’t expire until June 2008. SAG president Alan Rosenberg told the WGA members last night that the actors guild cannot strike now but supports the WGA “100%” and will walk the picket lines with the writers. Meanwhile, Leo Reed’s “Hollywood” Teamsters – aka the Motion Picture and Theatrical Trade Local 399 which reps over 4,800 studio drivers, casting directors and location managers — urged members to honor the WGA’s picket lines. At last night WGA confab, a Teamsters statement was posted on the doors. It specifically stated the Teamsters support for the WGA and noted individual members have the right, through the “conscience clause” in the Teamsters contract, not to cross WGA picket lines.
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12:01 AM: Writers Contract Has Expired
Editor-in-Chief Nikki Finke - tip her here.








“Odd that no one is pointing out that no studios have figured out how to PROFITABLY distribute tv shows online, yet talent is already asking for more.”
No, we’re asking for SOME.
Big difference.
“Maybe you’re not DGA or WGA, but you benefit every time the producer is forced to give a slice of his profit to an employee.”
Absolutely. Do you think the studios are going to be hiring IATSE for their web-only non-union productions? It’s all about jurisdiction. If the internet is established as union-free, then the entire business will be.
Gary, if there is no profit, then producers don’t pay out. 2.5% of zero is zero. Additionally, producers are touting with great fanfare to investors how profitable new media will be – can’t have it both ways.
Gary,
If the studios are spending MORE to put reruns of shows online than the numerous ADS that run before/after/during/along side the shows online bring in, well then they need a lesson in Internet 101. And they should probably tell that to their shareholders rather than the profitability projections they are so proud of showing when it comes time to make the board of directors happy.
Don’t tell us there’s no profitability model and then turn around and brag to the board how much money this new revenue stream (digital distribution) will bring in. That’s exactly what’s happening.
Both sides of the story, eh? I learned at the meeting last night that they can run your movie IN ITS ENTIRITY online without paying anyone involved a plug cent. Why? because according to “then” it’s promotional. Showing the entire film is promotional.
Talk about trailers that give away the entire movie.
Alex, actually the WGA demand is 2.5% of total revenue, not profits, so although I agree with you in spirit, your statement is incorrect.
Gary,
Ever hear how many hundreds of millions of dollars are spent each year on internet advertising. And how that number is ballooning?
Think of it this way… when you go to iTunes and pay $$ to download an episode of HEROES, you think the HEROES’ studio hasn’t figured out how to make money off that $$$? Or when you watch an episode on abc.com, you think ABC hasn’t figure out how to make money off the $$ the advertiser paid ABC to insert commercials?
One of the biggest, if not the biggest issue, is jurisdiction.
That’s why all unions should support the strike.
If the Internet goes non-WGAw, than you can be damn sure it’s going to be kept non-union. It just happens that we’re the first ones up during this historic battle. So we get to be called the bad guys.
The Teamsters get it. SAG gets it. Apparently, the DGA doesn’t or is acting like they don’t. I understand that the specific DGA’s interests don’t totally align with the WGA and SAG, but on this new jurisdictional frontier it does. Everything will delivered through the Internet.
This isn’t about shipping union jobs abroad. We lost that battle. This is about taking one of the last great American products, one of the last great American exports, and making sure there is no collective bargaining agreement for the cogs in the machine that makes that product. And, believe me, as one cog in the machine, most writers get paid as cogs. For the bulk of us, this is a middle class battle. The middle-class that is quickly disappearing.
I don’t think the Producers know how to make money yet on the “new media” and the writers are bringing a dated “Norma Rae” mentality to the table.
But I am curious about how the WGA can justify its 20 million dollar residual fund of monies they hold in that back-alley 1990 deal with the studios on behalf of writers they don’t seem to be in any hurry to track down. (in that LA WEEKLY article from earlier this year) Seems like the WGA uses contract time to make itself look good while it sells out the little guy the rest of the time to the studios.
In other words, all this strike posturing is damaging if it is due to the WGA trying to cover up its real sins of not doing its job between contract negotiations. And I’ll bet the poorest WGA members are not too anxious for a strike.
All the mental power in the WGA should be used to come up with a fair manner of downloading movies on the Internet instead of bickering with the producers. Class warfare in the film biz is a tired farce.
For those of us new to the guild and professional writing, last night’s meeting felt like a watershed moment that would either prove our willingness to fight or show the fractures that exist among the rank-and-file.
It was extremely gratifying to see the overwhelming support for an action none of us want to take. Hopefully the leadership has learned the lessons of the late 80s and will not be bullied into taking a deal that is not favorable.
The cries of poverty from the mega-corporations that are our corporate overloads are offensive and patently false. As a new media writer and occasional online marketing consultant for the studios I know first hand that they ARE making money from the creative efforts of guild members. We deserve to share in that success.
Since I never actually thought someone would pay me to write for a living I am extremely motivated to stand up for the rights of my fellow scribes now and for generations to come.
My thoughts go out to anyone who will suffer financial hardship as a result of this action.
Finally, a big thank you to Nikki Finke for creating a forum for intelligent discourse on a subject that will effect a lot of people. We may not all agree but we’re all in it together.
See you on the picket line.
The WGA is sadly mistaken if it confuses the Teamsters’ “support” with Teamsters not crossing their picket line. We wish you well and you have our support, but don’t be foolish and step in front of a truck. The Teamsters are going to work Monday, strike or not.
The Teamsters asked the WGA to sign a deal promising to walk out in the event of a future Teamster action . The Guild laughed. Couple that with the fact that 10,000 WGA members willfully crossed the Teamsters last picket line and you get what you’ll see Monday morning: Teamsters going to work.
It is absurd to think we wouldn’t cross this line. You guys are getting bad info.
Can somebody please confirm that the new seasons of LOST and BATTLESTAR GALACTICA have been written. thank you and good luck!
The real result of all this is that the number of writers hired for a show will be reduced, fewer pilots will get made and some portion of the writer/producer’s fees will be reallocated from the producer side to the writer side. That way those monies can then be considered overscale payments and can be applied against residuals. So yes, the WGA may win the additional nickel or so per DVD and download – which will translate into a few thousand dollars more in residuals per year of work – but the big picture will prove to be fewer writers hired. And the real truth behind all of this is that the studios are bullies, sure, but the writers are very well paid for doing what we all know to be jobs that thousands of others would love to have. We’re all replaceable and the fact that we get to write for a living is not a right but a priveledge. So while we’re all flush with excitement of standing united, we should remember that what we have now is pretty good too. If this goes for a long time than the net result will be a big fat negative for 90% of the writers. The top 10% will just get richer.
Just a question, but if the writers feel entitled to a share of the profits from internet distribution, are they also liable for the costs involved? Servers, IT staff, maintenance costs, etc are not free and in fact can be quite expensive. What is the general feeling of the writers’ responsibilities towards those costs?
Dave
I was wondering when somebody would bring up the foreign levies fund.
I asked about the foreign-levies payment plan once.
I was told to wait and see if something comes my way. Never did get a straight answer.
Even non union writers got their money sucked up by a union they don’t belong to!
Anything we gain on this strike will disappear into same blackness.
And there is a hell of a lot more than $20 million.
WGA is the pimp and we’re their whores but if you want to work, you gotta work their corner.
Dave,
Your comment about writers sharing in the costs of internet distribution might make more sense if we were 50%-50% partners in the venture. You could then take our share of the costs from our 50% of revenues. But what’s currently being offered is for producers to take 100% of the revenue from intellectual property *writers* created. That’s just patently unfair, and anyone who hears that that’s the producer’s proposal agrees with the WGA.
Joe
If the writers want a percentage of the profits, will they also share in the losses if a show loses money?
If they want the studios to take all the risk, and cover all the losses, it doesn’t seem very fair that the writers should get a cut of the profits without also risking a share in any losses. But I suppose that would be too realistic for Hollywood…
I wish someone who is knowledgable on the subject would comment on the “triple-play” technology that is being deployed world-wide.
Triple play meaning broadband intenet access, telephony and cable t.v. all in one package.
If all the future content will be coming through one pipe into everyone’s home…then isn’t this new paradigm, at least, part of what this strike is all about…and why is nobody talking about this?
David
Hollywood is a meritocracy. It doesn’t get any more realistic than that.
And yet, Casting Directors are moving to locations where they are less likely to have to cross a picket line so they can quietly continue working. So much for solidarity on their part. Face it, it’s all about money and screw everyone else.
“The Teamsters asked the WGA to sign a deal promising to walk out in the event of a future Teamster action . The Guild laughed.”
We’re not *allowed* to sign such a deal. What we are allowed to do is bargain for the right to respect other guilds’ picket lines, which is still on the table. In recent negotiations, we’ve taken MANY items off the table, but not THAT.
Teamster solidarity come Monday will do a lot to stiffen our resolve to keep this point on the table, and I am confident that it will happen.
“If they want the studios to take all the risk, and cover all the losses, it doesn’t seem very fair that the writers should get a cut of the profits without also risking a share in any losses. But I suppose that would be too realistic for Hollywood…”
Great, and then do we also get stock options, seats on the board of directors, voting stock, and the right to green light our own projects? Sometimes it helps to think a couple of steps ahead before making facile and nakedly anti-writer points like this. We did go to college and we are listening.
“If all the future content will be coming through one pipe into everyone’s home…then isn’t this new paradigm, at least, part of what this strike is all about…and why is nobody talking about this?”
The episode of Heroes coming into my home on the cable line to my television entitles the writer to residual payments. The episode of Heroes coming into my home on the cable line to my cable modem and onto my PC via ITunes, or streaming via “Hulu” (what, NBC, did your marketing budget limit you to late 90s dot com name rejects?) entitles the writer to no payments whatsover.
Five years from now, the eighth season of The Office, broadcast exclusively via digital delivery to your Tivo setbox for a $40 subscription, will entitle writers to no payments whatsoever, no credits protection, no residual payment for rebroadcast, nothing. And from there, we’re three steps from no health care, no pension, and the return of the ignominious ‘Additional Dialogue by’ credit. (For further education in the career rape of writers and our motivation in starting the writers guild, buy a copy of WHAT MAKES SAMMY RUN? from Amazon.com.)
That, among many other things, is what the Guild is striking for. When they make money off our work, we make money off our work. It’s as logical to deny us residual payment for our work broadcast over the internet as it would be to deny us for broadcast to flat panel televisions instead of CRTs.
Talent always gets screwed by the cheap bastards, strike them down! Go Go Go!
justlearning asked:
“Don’t writers still get their residual payments during the strike? (Most other Hollywood workers impacted by the strike don’t get residuals to keep them afloat.)”
The answer is, who knows? Even when a contract is in place, the Hollywood conglomerates are notorious for dragging their feet on making residual payments. During the strike, the companies may very well stop paying residuals entirely, and dare the WGA to sue. That court case will drag on for months and months. All the writers I know are simply assuming they will get zero income for the entire duration of the strike.
As an outside observer to this amusing Hollywood tale, I find it hilarious about how serious people are about this strike. I know it’s important for the small number of folks in this country who make a living peddling the sappy, manipulative drivel that Hollywood spews forth, but really, we’re not talking about a bunch of lazy, overpaid, union, underachievers shutting down our ports or transportation systems because they want more handouts. We’re talking about television shows and movies. “Oh no! What am I gonna do without Lost. I may actually have to get a life.”
For David, Dave, whoever — writers are not asking for a piece of “the profits” from anything — not TV and film, not internet. We are asking for a per use fee. That’s a royalty payment, not an ownership stake. Because the studios take financial risk, they do, in fact, have the rights to our copyright. But we also won a right to a royalty — residual — quite a while back. This is the issue: that payment for use of our material should extend to all forms of media. The producers wanted us to take profit–based residuals, and that was, in fact, idiotic — anybody ever hear of a studio making a profit? I understand that The Simpsons still hasn’t made Fox a penny!
___
“I don’t think the Producers know how to make money yet on the “new media” and the writers are bringing a dated “Norma Rae” mentality to the table.”
You’re right, the Big Studios (producers) don’t know how to make money on the “new media” market because it all depends on this moment in time. And time alone, will tell us how the internet domain is chartered. Until then, it is “unstable”, no lie there.
But I disagree, the studios have based this union negotiation on a very “Norma Rae” mentality, indeed.
___
” And, believe me, as one cog in the machine, most writers get paid as cogs. For the bulk of us, this is a middle class battle. The middle-class that is quickly disappearing.”
___
If writers are “cogs”, then writers, be apart of the internet system that in 50 years you can say you helped create. It doesn’t work if you don’t show up, you dig? Otherwise, a piece in the gear will be broken. The system falls apart. Writer be a cog on the gear, and turn The strike, but let this down time be a reflective resolve of the effectiveness of communication.
Knowledge makes it easier to be eloquent when fighting for what you want.
___
“All the mental power
in the WGAshould be used to come up with a fair manner of downloading movies on the Internet instead of bickeringwith the producers.Classwarfare in the film biz is a tired farce.___
So, that gets me to my point….. The Internet.
Is that 2.5% for me, and .25% for you?
Let’s get it straight, become informed (that means YOU ), not just the writers! If we can use the internet it will inherently help us navigate the “new media” internet quagmire in front of us. Tell your strike friends and foes alike to find a forum (Nikki’s?)/blog/picket line/whatever and share your ideas/opinions/A/S/L?…like I said, whatever. It’s a big web out there you never know what you might find.
Personally,
I haven’t been in town very long, but
“cogs” seem pretty important to me. My opinion, the teamsters get it. In the future (hopefully), we’ll all be grateful for what will be accomplished in 2007/2008-?. Perhaps, a global internet infrastructure for artist…grips…electricians, directors, musicians, gaffers, PA’s, for EVERYONE to get paid, period?
Entertainment folks, we’re already stupid enough to be in this silly industry in the first place. I know it, and you know it.
And
Because writers,
when our friends stare at us with disbelief, then ask, “Why?” We’ll shrug and say….
Gen Y, TV “whatever” – wannabe
Oh and, “In 1988…”
… blah,blah,blah, drop it! In 1988, I was 4…or was it 3? …But what does that have to do with price of DVDs in china.