FRIDAY UPDATE: WRITERS STRIKE AT 12:01 AM MONDAY; Zero Chance Of 11th Hour Settlement
LIVE-BLOGGING Thursday PM: I just heard from a source attending tonight’s Writers Guild Of America general membership meeting that the exact timing of the writers strike will be decided tomorrow, then announced in the afternoon. The thought was the labor action would begin early Monday morning when writers could turn out en masse for the TV cameras and set up picket lines which the Teamsters wouldn’t cross, causing headaches for production at the studios and networks. In response, the producers’ rep Nick Counter said, “By the WGA leadership’s actions at the bargaining table, we are not surprised by tonight’s recommendation. We are ready to meet and are prepared to close this contract this weekend.” But earlier in the day, Counter had claimed that, “due to overriding business reasons, no further progress can be made”.
The Screen Actors Guild will be joining the WGA picket lines, and the writers guild said SAG has stayed in the background of all the negotiations. The actors’ contract with AMPTP doesn’t expire until June 2008, so SAG’s president told the WGA members tonight that the actors guild cannot strike now but supports the WGA “100%” and will walk the picket lines with the writers. Meanwhile, the meeting heard from the guild leadership that the Teamsters are getting threats from studios (no proof was offered) after Leo Reed’s “Hollywood” Local 399 – aka the Motion Picture and Theatrical Trade Teamsters which reps over 4,800 studio drivers, casting directors and location managers — urged members to honor the WGA’s picket lines. I’m told a statement from the current General President of the Teamsters (not just local 399, but all of the Teamsters) was read with copies posted on the doors. It specifically stated the Teamsters support for the WGA and that individual members have the right, through the
“conscience clause” in the Teamsters contract, not to cross the WGA’s picket lines.
The WGA leadership said tonight it waited until the writers contract expired at midnight on October 31st to see if the Alliance of Motion Picture & Television Producers prez Nick Counter came up with a last-minute (and expected low-ball) offer — but he didn’t. So now the Hollywood writers walkout is a reality. The WGA leadership gave final authorization for a strike and will email all 12,000 members tomorrow afternoon the exact date and time that labor action will begin. Tomorrow, the WGA West & East board decides when is the most opportune moment for the walkout.
Tonight’s WGA meeting inside the Los Angeles Convention Center was attended by thousands of guild members. (Variety put the figure at 2,000 first, then upped it to 3,000 out of WGAW’s 7,700 members; my sources say more were there than that.) Every seat was full, and scores more people were standing. The confab was, in a word, packed. Not only did everyone show up right on time, but by 7:30 pm the meeting was in full swing. WGAW president Patric Verrone and company got a 5-minute standing ovation when they entered. Attendees counted more than 20 standing ovations during the meeting, with more applause breaks than anyone could keep track of as well as a steady stream of clapping as WGA Negotiating Committee toppers John Bowman spoke first, saying, “If there’s a strike, it’s because eight CEO’s want one,” referring to the moguls who run Hollywood and Big Media. Cheers and applause rose from the crowd when the WGA’s negotiating committee’s Dave Young announced its recommendation to strike.
There were also big laughs, a huge gasp, and even one round of boos all aimed at the producers. This Guild leadership is often described as hardline, but tonight’s membership at the meeting appeared even more hardline than their leaders. (Of course, anyone willing to trek down to the downtown LA Convention Center in rush-hour traffic must be a militant.) When one of the Guild leaders talked about some of the concessions they made during the bargaining in order to try to jumpstart the talks, there was dead silence. Then palpable anger from the audience. ”Take those things back,” and “Don’t give them anything!” was shouted by individual members, followed by bursts of applause.
Friday morning, the WGA issued this statement: “Thursday night, nearly 3,000 WGA members packed the LA Convention Center. At this meeting, the largest membership meeting in Guild history, writers heard the WGA Negotiating Committee’s report on the status of negotiations. The Negotiating Committee reported that the AMPTP had called a halt to negotiations by demanding we accept the extension of the current DVD formula to new media. They also reported that in three months of negotiations, the AMPTP has not responded in any serious manner to our initial proposals. The Negotiating Committee then announced its unanimous recommendation that the WGAW Board and the WGAE Council call a strike. Members spent three hours in frank discussion of the Negotiating Committee’s report and recommendation. The membership expressed their anger at the Companies’ refusal to bargain seriously, and voiced their overwhelming support for the Negotiating Committee, Guild leadership, and for the bargaining agenda of the WGA. The WGAW Board and the WGAE Council will meet Friday to consider the recommendation of the Negotiating Committee and to decide the next steps. The decision of the Board and Council whether and when to strike will be communicated to the membership by e-mail and through the Captains system, and will be posted on the WGAW and WGAE websites.”
For background on the WGA strike, see my 12:01 AM: Writers Contract Has Expired.
EARLIER TONIGHT: Not even Writers Guild Of America bigwigs are sure exactly when the writers walkout will begin. But all will be explained at tonight’s general meeting at 7 pm inside the Los Angeles Convention Center. (Could they have chosen a more lousy location?) One top WGA source speculates to me that picketing will start as soon as a strike is called, and that could be as early as tomorrow. (But wouldn’t they want to wait until Monday when writers can turn out en masse for the TV cameras?)
Just now, the Alliance of Motion Picture & Television Producers President Nick Counter issued this very negative end-of-day statement (continuing to refer to DVD residuals when what he really means is electronic sell-through residuals): “Due to overriding business reasons, no further progress can be made because of the WGA’s continuing efforts to substantially increase the DVD formula. We are ready to meet at any time and remain committed to reaching a fair and reasonable deal that keeps the industry working, but the DVD issue is a roadblock to these negotiations.”
Tonight, a member of the WGA’s new Communications Committee blogs where the guild stands on the issues:
”What’s the biggest issue? Internet and New Media
What are we asking for in Internet and New Media? Two things: 1. Residuals for reuse of content (like replaying tv shows) on the internet. We’re asking for residuals of 2.5% of revenue — that means for every dollar they get paid, we’d get 2 and a half cents. It’s a flat percentage, so if they’re right and they’re never ever going to make a penny, well then, we won’t either. No harm, no foul. Since 2.5% is our starting point, in any normal negotiation we’d end up somewhere between what they want to pay (.3%) and what we’re asking for (2.5%). I’d guess 1 to 1.5 %. 2. Coverage and protections for original content (new stuff we create for the internet.) We’re asking for basic protections so that when we write original stuff for the internet, we have rights — health and pension, minimum amounts, credits and separated rights (so if we make some amazing character or show, we get the right to share in its success.) We’re just asking for the same protections we already have for writing in TV or film. Nothing new or weird. Just the basics.
What are the other issues? DVDs: Currently we get .3% per dvd, we’re asking for .6%. Translation: now we get 4 cents per dvd. We are asking for 8 cents per dvd. Since most DVD’s cost at least 10 bucks, that doesn’t exactly seem like a bank-breaker. Whatever. Enforcement of Coverage: There are lots of shows, like game shows, documentaries and talk shows, where writing is supposed to be covered under our contract. The companies sometimes just ignore the contract — which means folks don’t get health and pension, and if they ask for it, they get fired. We want them to stop that, and honor the contract they signed. Expansion of Coverage: We want to cover stuff where writers are working without coverage, which means without health and pension and other protections. The two big areas are animation and reality. We think those writers should be covered.
You don’t actually think you’ll get all that, do you? Personally? I think in a perfect world, negotiation involves, well, negotiating. That’s give-and-take, where we get some of what we want and they get some of what they want. So far, they just keep showing up at the table with more and more things they’re saying they’re going to take away — rollbacks on health and pension, gutting of separated rights, that kind of thing.
But they gave back those resid-whatever-thingums, right? Sort of. They took that one rollback off the table — but since they’re not moving on “digital delivery”, and since pretty much all content is going to be digitally delivered in the coming years, well… we’ll lose those residuals as soon as that happens. So without internet coverage, it doesn’t mean much.”
Editor-in-Chief Nikki Finke - tip her here.





Jack,
While having two unions on strike at the same time would be quite powerful, the studios were expecting the WGA to wait until June to strike and had more than doubled the number of movies they were going to put into production (150 in the first half of the year instead of 65.) The TV season (as far as producing the episodes) ends in March but the studios would’ve forced the shows to work until June, giving them a good jump on the upcoming season.
With all those movies shot, and TV episodes completed a strike at that time would have no power.
But by going early — taking the studios by surprise (at least a little) and definitely cutting into the TV season — well, it has more effect and a fair deal can be reached faster and everyone can go back to work.
And hopefully it will set a pattern for a similar deal with the actors and avoid them from striking as well.
(And Mark, keep up the good comics!)
Pissed off~
There’s a strike fund that exists to loan money to writers in order to help them avoid bankruptcy etc. in strike time. Many availed themselves of it in the last strike.
A gentleman from L&O SVU spoke at the meeting tonight. He recalled the struggle he experienced in the long hard years it takes to break in and actually become a professional writer. It was worth it to him then, and he feels it is worth it to him now to be a writer even though it means he might struggle again.
Uncertainty is a part of our business, period. That’s with or without a strike. Every new season on the TV side we face cancellation and the possibility of not getting staffed somewhere else. As Marc said, we’re gig-to-gig in the best of times. This is a frightening time but I think also a good time to keep as cool a head as possible.
Fred,
I was at the meeting tonight – it might have been 2000 people, might have been 3000, I don’t know, but that’s out of 7700 Writers Guild members on the West Coast (not all in Los Angeles, either). The remaining 4000 or so that make it a 12,000 member Guild are on the East Coast. It was a standing room only crowd, a stronger than expected turnout by all accounts.
Just for the record, if the DGA steps in, and cuts another self-serving, Vichy deal, it won’t matter to us.
The DGA seems content to wait three years on the internet, for other, short term gains. We’ve waited 22 years for a reworking of VHS, and longer for cable.
Fool us once, ok. Twice. No.
And if the DGA sells us out again, we’ll know them for what they are. And we’ll wait for the deal we deserve.
The entire writing team on our show was heartened by the solidarity of the Teamsters, and somewhat embarrassed by the hubris of the DGA crew members. They get tiny pay-offs for sidling up to management, and they can’t seem to see the bigger picture.
We don’t care if the public is with us b/c there’s no way they can understand how the business works. It’s too complicated. Our PR fight is with those in our industry – our peers.
The ironic thing is that when people complain about the shitty state of movies, they should blame our employers (who we are fighting against), not us. They DEMAND we make crappy sequels, re-makes, etc. If you don’t want Transformers, don’t contribute to it making 600 million! Writers don’t decide which movies to make. Not even close.
Also, we are fighting multi nationa corps who own Variety and Hollywood Reporter et al – so their coverage of the issue never shows that the guild is primarily a middle class group fighting for BASICS!!
And WANNABE WRITER – If those of us didn’t fight for you now, there would be nothing left for you to live on by the time you get to the party. Previous fights by the guild have done that for us, and we have to do it now.
The Key issue – is Electronic sell through and new media downloads, as well as the egregious issue of using writer’s work as “PROMO MATERIAL” for free, while they are already making a hefty profit off of it (so they brag to shareholders).
EXAMPLE: You can watch a FULL episode of THE OFFICE via NBC.COM and it is filled with commercials – the network gets revenue and the author of that work doesn’t get a dime b/c they call it “Promotion” of the show.
As we move toward the future, and TVS and Computers are one, this will be the MAJORITY of how people view content. You think you work should be for free? Does anyone work for free?
Every 20 years or so, there’s an issue worth fighting for – this is ours.
When your allies are the teamsters you shouldn’t be heartened, you should be embarrassed.
of course we could all go for the golden goose- finance movies independently and eliminate the studios altogether- a la the way the music biz is being rebuilt. These new writer co-op/hedge fund deals are being played with and should be watched. The studios know they’re at risk of going the way of the music biz and maybe we should call their bluff. Dave and Interested Observer are interested in maintaining the status quo, not evolution. The fact is with the coming of digital distribution to theaters, projects could be set up with actors directors and writers working cheap for a stake and the work could be sold to the theater owners directly with 50/50 deal they currently have with the studios. The studios are in danger of becoming obselete, not creatives.
Wannabe I am not a writer, but I know what they are going through and I support the WGA 100%. If you consider 100% what is the problem with TV and movies today, blame it on the Studios and Networks. Read through the comments and you will see that the writers are hired to write just what they are hired to write.
Creativity is suppressed in favor of giving the masses what they want and what they want is the status quo. That is why we get another Sopranos in CBS’s Cane, a Bionic Woman rehash on NBC, FOX trying crime shows such as Bones and K-Ville because they know they work on CBS, and ABC tried with shows that remind you of Sex and the City.
Heck, the only original development that existed in network television in the last few decades can be counted on one hand.
* Gilmore Girls (WB)
* House (FOX)
* Survivor (CBS) Yes I know it was reality, but it predates almost all reality.
* CSI (CBS)
* The Simpsons (FOX) I would count Family Guy, but that doesn’t count at times because it rips off The Simpsons.
Finally, I would just like to say that in response to the actors solidarity with the writers, how long will it be before the AMPTP voids the SAG’s contract and makes the mistake of locking them out? How long before they make that mistake simply because the actors support the writers?
Do WGA writers still get residuals while on strike? Or does all of their writing revenue cease?
While I believe that the writer’s cause is just, I can’t help but remember how the last strike of 1988 screwed up television forever. Seasons start later and end earlier and we have a glut of nonsense “reality” television. Please don’t let it get any worse!
John –
I’m guessing you’ve never met a Teamster. The Teamsters are the backbone of any film crew, and writers are glad and grateful that they are standing with us.
I am not in the industry but have been paying attention to the issues at hand. I support the writers and think you are wise to tackle these issues head on. I was interested in how the music industry handled digital downloads and am hoping you get what you deserve. I think the studios should have built a business model before this and been prepared for sharing with the writers in profits from digital sales. Good luck to you all. I hate to think of any of you struggling for your families to get what you deserve, but it is a good fight that will ensure your security in the future and for those who come after you. We, the viewing public, will miss you while you’re away.
I appreciate the articulate and considerate responses I’ve gotten to my post. A few thoughts:
T-
Yes I’ve gotten stock options, but only small amounts. Not enough to where I could be considered one of the owners of the material in that regard, or to make a substantial profit thereof.
John-
I’m not sure I understand your point, are you saying that you’re not free to go work for whom you will? If the studios lose the talent and have no one to produce their product, then they will go out of business just like any other company. The market forces will compel them to be competitive with their compensation to the writers, not a union contract.
Ben-
I don’t claim to be an expert, but I don’t think there is a novelist’s union that negotiates contracts on behalf of all the novelists. The book writers that own their material and the rights for subsequent use negotiated that deal individually between them and the publisher. I’m all for every writer out there getting the best deal they can, as much money as someone is willing to pay them. But, it should be based on their worth in the market, not a contract that compels a company to pay regardless of the track record of the writer. JK Rowling or Stephen King can demand all sorts of concessions and compensations from their employers, because they have proven the worth of their product and the publishers know that its worth paying them what they want. That’s the way the market works. If you’ve written a viable commercial property, there will be someone out there willing to pay you what you want for it. If not, you can either try to bring it to market yourself and reap all of the profits, or rethink its worth and continue to negotiate.
Jimmy-
I understand what you are saying but I don’t agree, at least not in all cases. If a producer has an idea for a movie or options an existing product like a book or play, is the screenwriter still in your opinion an “original owner”? In those cases, the writer is hired to produce a script, i.e. to do a job just like someone hired to build a house. Now, if the writer does have the original idea and shops it around to studios, then they should negotiate their compensation based on the merit of the product, not based on a union contract. If the product has worth, there will be a producer out there willing to pay for it. If the writer thinks the product has use beyond the intial medium, they should negotiate for the interest that they want to keep in the material. I’ve read recently about the deal that Trey Parker and Matt Stone negotiated with Comedy Central for South Park. Because they were shrewd, they kept certain rights that are paying off big for them now. However, I don’t believe it was a union contract that brokered that deal, but rather their own sense of the value of what they created and the resulting positions they took with the network, and more importantly the network’s belief that they would make a good profit under the terms of the deal.
Scott-
You make it sound almost as if writers don’t have a choice to pursue some other profession, but are captives of the studios. The truth is, you are free to earn a living however you want to, and the studios should be free to negotiate with each writer on the salary/compensation that they offer.
I can sense your passion for what you do, and I don’t make light that it would be a difficult decision to choose another career. I truly hope this strike doesn’t damage you and your family and that you’ll be back writing again soon.
Marc-
I’ve worked both as a salaried employee, and on a contract (project) basis. For the latter, I’m brought in and paid for a specific period of time to produce the product the company wants to bring to market.
Again, to all the writers, while I don’t agree with your union I hope for the best for you and that this strike is short-lived.
Dave
Ben,
Just to be clear, I don’t support the status quo at all, that’s what has gotten the writers to this point. I think the new innovations in the music business (i.e. musical acts marketing their product directly to the public, by passing the labels) is brilliant, and an example of free market thinking at its best. If you have what the public wants, you don’t need a union to force the studios to do anything.
Dave
Actually it is the Teamster leadership that is standing with the WGA but the actual drivers are allowed to decide on an individual basis if they will honor the strike. I wonder how many will be giving up their paychecks so the writers can get more money from residuals. Not many I suspect.
Dave is absolutely right. I appreciate the seriousness of his tone.
I hope the writers can move beyond the current paradigm. It will be good for everybody!
I am a WGA member. I voted for the strike authorization two weeks ago. I believe in what the WGA is fighting for and I understand their position, but I was appalled by the exuberance the strike announcement was met with at the WGA meeting last night. What should have been a solemn moment of solidarity sounded like the “Ellen” audience when she gives away the first season of Grey’s Anatomy on DVD. The writers are fighting a just war, but they are clearly out of touch with the working man.
Everyone asking why Teamsters or any other Union member will still go to work needs to attend Collective Bargaining 101. It is ILLEGAL for any union member to walk out or strike for any union, but their own. There are very few things which company can fire a union member for without a long drawn out process and this is one of them.
As you can see, I’m not a writer, but I’ve been in the business for more than 20 years, in a bunch of other capacities.
I’ve never understood why there are clauses in agreements that force union members to cross pickets from other unions, but allow the producers to lay everyone off as soon as any one union goes out.
I, too, want to know if SAG is honoring the picket lines, or if members are being encouraged to support on an individual basis during non-work hours (AFTRA’s position).
It is my understanding that the WGA has long been thought of as the most confrontational union. And after all these years, I can find an arguement to support bith sides of every issue raised. But what I can’t understand is taking reality television out of this discussion. By doing this, the WGA has seemingly destroyed what leverage it does have — there are plenty of sources of material for programming available to the networks, and where they may not generate up front ad rates as high as the regular prime time schedule would, they also will cost nowhere near as much to put on the air. The amount of money changing hands may be reduced, but the profit margins will likely be close to the same.
I’m embarrassed to admit that I am damn near obsessed about the impact ths strike will have on my so-called revenue stream, and therefore, just want the situation resolved yesterday.
Nikki, thank you for providing the best source of information out there, and a place for intelligent thought.
m.
HOW MANY OF YOU OTHER TV FOLKS ARE GOING TO HAVE A IMPROMPTU WRAP PARTY TONIGHT??????
Ladies and gentlemen of the WGA:
Remember history. Your history.
Had the issue of fair share been settled back in the dawn of the videocassette era, how many of you would have been living better lives financially *today*? How many of you would have had more freedom to pursue projects you were *interested* in, instead of scrambling to find *something* to make debt payments?
How many of you would feel *less* like suckers today?
To all the youngsters who are trying to start a career in this profession: Be quiet. You have not lived a long enough life to fully understand the dimensions of this payment issue. Swallow whatever temporary disappointment you might be experiencing *now* for a better *future*. (Also, you must ask yourself: Was I called in because they really want me, or did they call me in to tempt me to desert the profession and play traitor to everyone else? There wouldn’t *be* a profession for you to enter had it not been for the earlier struggles of others. Respect that.)
Stand firm, good luck.
Thanks Hyphenate,
Heard about the fund last night. We’ll keep it in mind, though we’ll do the best we can on our own first.
I agree with Pissed that the exuberance that met the announcement was weird and unsettling. I support the union, but this is not something to cheer about.
Good luck!
ben Gardner-
In a way that’s already happening. There’s a new internet series starting soon called “Quarterlife” that’s written by established WGA writers, uses SAG actors and is independently produced. I’m curious to see what effect the strike has on shows like this and vice versa. On the one hand tv reruns an reality programming may drive eyeballs to the web but on the other hand if the show is successful during this time it’s going to show there are other options than delivering to networks.
I agree with everything Dave has said so far. As a business owner, in the software industry, I believe Labor Unions in general have run their course. I like to compare organized labor to organized crime. Unions basically hold companies hostage. Securing inflated wages and benefits for members while lining their pockets with dues. Legalized extortion!
In the information age a competent individual should not have a problem negotiating in a free market.
My questions is…Why do you need a writers union?
– If you write something on your own time and want to market it. Strike a deal that works for you.
– If you are contracted to write a particular item – Strike a deal before you start work.
– If you are on staff and paid a salary – Negotiate your employment contract.
Just because Joe gets paid royalties does not mean John should. Heck John might decide to take more money upfront and relinquish any future payments. It is his choice to make!!
The US is not a socialist country. An organization has the right to pay what they think is fair. If you do not think it is fair…take your product somewhere else.
Contracts do not suddenly spring to life. They evolve. This year’s is based on the previous one and so on back to the dawn of time and/or the first contract. The problems re. residuals on internet viewings, etc. etc. were born when people didn’t write good language on residuals or negotiate a “none of the above, too” clause, in effect. Now we pay for that with strife and financial hardship. So it goes. Ditto on DVD’s and all other media uses, but there is a larger point to be remembered:
The whole raison d’etre on residuals is this–that your “performance” (as an actor, a writer, a director, etc. etc.) happens once but is re-performed thanks to the recording of it. It is the analogy to a stage show where people get paid every night the show runs. But residuals are a “subsidiary right” or secondary use, in theory and in past contract law. And what many do not know is that there IS a provision in many contracts that says, in effect, “not that we think this will happen, but if this secondary source of income becomes the PRIMARY, all bets are off.” That is the core of the current problem–DVD’s are now the PRIMARY source of revenue on most movies, and the first-run in theaters is, in effect, a customer-subsidized PR campaign for the DVD.
But nobody at the studios wants to rock that old boat for a brave new unknown world so we get into these impasses. The dam WILL break and a deal WILL happen eventually, we can all hope sooner rather than later. What we must insure is that the NEW language covers enough options and pre-thinks future possibilities enough so that fewer “unexpected” but highly predictable consequences will cause future strikes and more pain.
Meanwhile, let’s not forget that when this town shuts down, it isn’t just writers or actors or teamsters or directors or grips who lose. Their bankers, gardeners, dry cleaners, restaurateurs, butchers, bakers, and candlestickmakers all depend on this industry, and the pain is widespread. Let THAT be how we react when, as inevitably it will, some wag claims “Who cares if a bunch of spoiled, rich writers go on strike?”
Cheering was understandable at the Convention Center because solidarity is important, but let’s keep repeating this: NOBODY wins when we are not working, so let’s SOLVE this problem with the wake-up-call to Nick Counter & Co that a strike, we hope, will deliver.