4th UPDATE (more new information throughout): Let me recap what happened tonight, first and foremost. The Alliance of Motion Picture and Television Producers today at 2:35 PM put a so-called revised proposal, including a list of demands, on the bargaining table to flesh out its New Economic Partnership for the Writers Guild Of America.
The WGA described to me that the AMPTP’s latest New Media terms were the same old/same old. But I’m told agent Bryan Lourd, considered an objective source, believed that the new AMPTP proposal bettered the studios’ and networks’ terms on the table for New Media. It included an improved, albeit slightly, streaming deal for theatricals.
A controversy erupted over the AMPTP’s arrogantly issuing demands for the negotiations to continue. They ordered the writers to immediately take Reality TV and animation jurisdiction off the table, remove the no-strike clause in their contract (meaning that, once their own strike was settled, the writers must cross picket lines if the Screen Actors Guild goes on strike), stop insisting on a fair market value test (aimed at keeping the studios and networks from selling entertainment product back to themselves at a lower price than they could get from an outside company), and no longer demand a distributor’s gross definition on New media (which the WGA argues could gut all its New Media proposals). See the AMPTP’s ultimatum here for yourselves.
I’m told that, after the AMPTP ultimatum was made, the WGA negotiators (above left, WGA’s John Bowman. All photos here courtesy of Jim Stevenson) went to caucus inside a hotel room. Faced with what to do about the AMPTP’s take-it-or-leave-it demand, “we were still going to make a counter-proposal in the hopes of keeping the negotiations going,” recounted WGA negotiating committee member David A. Goodman, who was there, in an email. “However, we were all pretty clear that they were setting us up.”
After about an hour and a half, the AMPTP claims it sent Bryan Lourd to the hotel room to ask what was happening, and he was told by the WGA they were preparing a counter-proposal. The AMPTP says it asked Lourd to find out if that counter-proposal contained anything from the list of demands which the networks and studios wanted the WGA to take off the table, and that the WGA negotiators wouldn’t say.
But the WGA’s Goodman (left) disputes the AMPTP’s account of what happened. “As we were discussing what to do, [AMPTP president] Nick Counter came looking for David Young. He asked him, in the hallway, “Are you going to take those things off the table?” David said we were working on our counter-proposal, but wanted to present everything at once, [and] he wasn’t going to negotiate in the hallway, and said we would be making a counter proposal very soon, that night.”
The AMPTP version is that, at 6:05 PM, Counter knocked on the hotel room door trying to find out some indication from Dave Young what the WGA was going to do, especially on the reality/animation jurisdiction and no-strike issues. Counter brought Bryan Lourd along “as a witness,” the AMPTP told me. “David Young answered and was visibly angry.”
But the WGA’s Goodman says this is wrong. “David was not ‘visibly angry”. All the conversations in the hallway were amicable, if tense.”
According to Goodman, “Nick came looking for David again and tried to motion David away from Bryan Lourd’s door (where Bryan was standing), but David motioned Bryan to follow them so he heard what Nick said.”
Bryan Lourd told people privately that he counseled the WGA negotiators that “this was their maximum moment of leverage” and urged them to try to “trust” the AMPTP, but the WGA told him they couldn’t at this point. “It was an ultimatum. They said unless we take everything off the table except streaming and ESTs that they’re not going to negotiate anymore and basically they’re leaving until we’ll remove all those other things,” a WGA board member explained. “We’re not accepting an ultimatum. We’re here to bargain and to talk.” (right, Reality TV writer speaking at WGA’s march down Hollywood Blvd.)
Both sides agree on what Counter then said to Young: “In that case, we are leaving and breaking off negotiations. When you send us a letter confirming you will take all these items off the table, we will make an appointment to resume negotiations with you.”
The AMPTP claims the WGA hotel room door slammed shut. But Goodman says, “No door was slammed.”
Then AMPTP president Nick Counter hand-delivered the following letter to the WGA’s executive director Dave Young which was also cc’ed to Bryan Lourd:
This will confirm the conversation we had today at approximately 6:05 PM, in the presence of Bryan Lourd, in which I asked whether the WGA was preparing a proposal in response to the proposal given to the WGA by the Companies at approximately 2:35 PM this afternoon. You advised that the WGA was preparing such a proposal. I asked whether any of the six issues that the Companies had earlier today advised the Guild must be withdrawn before negotiations can proceed further would be included within the proposal the WGA is preparing. You responded that you did not know because you were still working on the proposal.
I informed you that when the WGA sends me a letter confirming that those six proposals are withdrawn, the AMPTP will schedule another negotiation session with the WGA.
Immediately thereafter, the reps for the studios and networks quit the negotiations and issued their press statement already in hand blaming the writers for the breakdown in talks. “Under no circumstances will we knowingly participate in the destruction of this business.”
But the writers said their side considers that the talks are still ongoing and insists they won’t stop negotiating. Then the WGA issued its own statement saying, “We remain ready and willing to negotiate, no matter how intransigent our bargaining partners are, because the stakes are simply too high.”
In short, things are back to being a big mess.
What’s amazing about all of the above is that the AMPTP followed almost to the letter a script which they themselves conceived and wrote earlier in the week. I had reported Thursday night that the reps for the studios and networks planned to break off today’s talks. This morning, the WGA issued a sternly worded statement calling out at the AMPTP for the plan to stop the negotiation just as it was getting go. Indeed, just as I had predicted, the AMPTP had a news release at the ready tonight announcing why it was leaving the talks. So did IATSE local boss Tom Short, indicating he was working in concert with the AMPTP tonight to blame the WGA.
One thing for sure: no one can have any doubt this time around who walked out on these negotiations and who stayed in. Not even professional spin doctors can change that. And it’s also obvious which side understands the concept of haggling.
First, here’s the WGA statement which goes into detail about what happened tonight:
AMPTP BREAKS OFF NEGOTIATIONS
Today, after three days of discussions, the AMPTP came back to us with a proposal that included a total rejection of our proposal on Internet streaming of December 3rd.They are holding to their offer of a $250 fixed residual for unlimited one year streaming after a six-week window of free use. They still insist on the DVD rate for Internet downloads.
They refuse to cover original material made for new media.
This offer was accompanied by an ultimatum: the AMPTP demands we give up several of our proposals, including Fair Market Value (our protection against vertical integration and self-dealing), animation, reality, and, most crucially, any proposal that uses distributor’s gross as a basis for residuals. This would require us to concede most of our Internet proposal as a precondition for continued bargaining. The AMPTP insists we let them do to the Internet what they did to home video.
We received a similar ultimatum through back channels prior to the discussions of November 4th. At that time, we were assured that if we took DVDs off the table, we would get a fair offer on new media issues. That offer never materialized.
We reject the idea of an ultimatum. Although a number of items we have on the table are negotiable, we cannot be forced to bargain with ourselves. The AMPTP has many proposals on the table that are unacceptable to writers, but we have never delivered ultimatums.
As we prepared our counter-offer, at 6:05 p.m., Nick Counter came and said to us, in the mediator’s presence: “We are leaving. When you write us a letter saying you will take all these items off the table, we will reschedule negotiations with you.” Within minutes, the AMPTP had posted a lengthy statement announcing the breakdown of negotiations.
We remain ready and willing to negotiate, no matter how intransigent our bargaining partners are, because the stakes are simply too high. We were prepared to counter their proposal tonight, and when any of them are ready to return to the table, we’re here, ready to make a fair deal.
John F. Bowman
Chairman, Negotiating Committee
Prior to this, the AMPTP issued this statement:
We’re disappointed to report that talks between the AMPTP and WGA have broken down yet again. Quite frankly, we’re puzzled and disheartened by an ongoing WGA negotiating strategy that seems designed to delay or derail talks rather than facilitate an end to this strike. Union negotiators in our industry have successfully concluded 306 major agreements with the AMPTP since its inception in 1982. The WGA organizers sitting across the table from us have never concluded even one industry accord.
We believe our New Economic Partnership proposal, which would increase the average working writer’s salary to more than $230,000 a year, makes it possible to find common ground. And we have proved over the last five months that we want writers to participate in producers’ revenues, including in theatrical and television streaming, as well as other areas of new media. However, under no circumstances will we knowingly participate in the destruction of this business.
While the WGA’s organizers can clearly stage rallies, concerts and mock exorcisms, we have serious concerns about whether they’re capable of reaching reasonable compromises that are in the best interests of our entire industry.
It is now absolutely clear that the WGA’s organizers are determined to advance their own political ideologies and personal agendas at the expense of working writers and every other working person who depends on our industry for their livelihoods.
Instead of negotiating, the WGA organizers have made unreasonable demands that are roadblocks to real progress:
– They demand full control over reality television and animation. In other words, they want us to make membership in their union mandatory to work in this industry – even though thousands of people in reality and animation have already chosen not to join the WGA.
– They demand restrictions designed to prevent networks from airing any reality programs unless they are produced under terms in keeping with the WGA agreement. This would apply even to producers who are not associated with the Guild. Their proposal artificially limits competition and most likely would not withstand legal challenge.
– The WGA organizers are demanding the right to ignore their bargained “no strike” provision, allowing them to join in strikes of other labor organizations.
– Their proposal for Internet compensation could actually cost producers more than they receive in revenues, thereby dooming the Internet media business before it ever gets started.
– They insist that writers receive a piece of advertising revenue – even though the producers that pay them don’t receive any of this revenue in the first place.
– They want a third party to set an artificial value on transactions, rather that allowing the market to determine the worth of each transaction. This would result in producers having to pay residuals on money that the producers never even received.
These are the terms the WGA organizers demand for ending the strike – money that doesn’t exist, restrictions that are legally dubious, and control over people who have refused to join their union.
Besides betraying a fundamental misunderstanding of the economics of new media, such as a streaming proposal that would require us to give them more money than we make ourselves, the WGA organizers are on an ideological mission far removed from the interests of their members.
Their Quixotic pursuit of radical demands led them to begin this strike, and now has caused this breakdown in negotiations. We hope that the WGA will come back to this table with a rational plan that can lead us to a fair and equitable resolution to a strike that is causing so much distress for so many people in our industry and community.
- Judge AMPTP’s Ultimatum For Yourselves
- Talks Day #8: CEOs Run With Streaming
- WGA/AMPTP War Of Words: Who’ll Blink?
- Talks Day #7: AMPTP “Stalling Tactics”; Are Moguls About To Quit Talks?
- The Operative Word Tuesday Is “Haggle”
Editor-in-Chief Nikki Finke - tip her here.


Perfect. Just as we all expected.
Now the WGA can immediately take Reality jurisdiction and No Strike Clauses off the table (because writers don’t much cae about those issues anyway), proclaim they’ve made an enormous concession, and invite the AMPTP to talks tomorrow morning to continue on the other issues.
And then watch them squirm to explain why they still won’t come back.
Well, the WGA predicted it and the AMPTP did just what was expected. These guys never intended to make a deal. Their plan is to bully, divide and conquer. Maybe it’ll take a year, but let’s see how their bottom line does without scripted content.
Damn them! And by them, I mean the AMPTP. I am so disgusted with them, and I can’t believe they are playing it this way. I mean I can, but I can’t, because it’s just so repulsive.
I am so pissed off that they aren’t willing to settle this strike fairly and in a timely manner, and getting people back to work and getting my shows back on the air, and are trying to play the poor martyr card and trying to make the WGA the bad guys.
Damn it! I know it wasn’t a high possibility, but I was still hoping we could have this strike settled by Christmas, or New Year’s by the latest. This just sucks. The AMPTP are worse then the Grinch, and I hope they choke on their egg nog.
Their Quixotic pursuit of radical demands led them to begin this strike, and now has caused this breakdown in negotiations.
You mean, actually getting paid? The nerve of some people.
Also, isn’t it kind of hard for the studios to claim that the writers broke off talks when they’ve already gone on record saying they are willing to negotiate night and day through the holidays and beyond?
Watch out for that lightning!
It sure would suck if the DGA came in to negotiate their contract now that the AMPTP is taking this hard line with the WGA. I heard the statement from the DGA that they are going to do what’s best for their members, but given the attitude of the AMPTP and the writer/director relationship, I’d hope the DGA will respect the WGA and realize it’s not just about doing what’s best for all the members of the DGA – you also have to think about the world in which you live and operate. Writers and Directors and Actors all work for The Man. And The Man is being a jerk. If the DGA looks at the possible break in the WGA talks to be a good time for them to look after themselves, then they are not brothers to the writer. They are not friends to the writer. They are opportunists. It would be a lame, selfish act that would resonate for years – just as this AMPTP crap statement is going to remain in the hearts and minds of writers as they negotiate future deals with the folks who are members of the AMPTP. Folks like Google, Yahoo and others should smell an opportunity here. Fans will continue to flea from watching what the networks are showing, but the studios will never admit fault and will continue to throw verbal crap at any leadership that opposes them. Stay strong WGA – stand with us, DGA. And thanks for the support SAG. This cause is worth fighting for. And it won’t be easy to get what is fair. But, in the end, it’s not just a question of doing what’s best for the future generations of writers, it’s also about doing what’s right when the folks opposing you are complete jerkweeds (yes, I made that word up, I think).
- writer outside the gates who wishes he saved some of the above for a monologue in my next script.
Sounds like they went through a few drafts of that release… They probably started working on it last Friday.
Wow – they walked away. They walked away… Huh, guess this shouldn’t surprise me by now. My favorite contradicting statement they make is:
– The WGA organizers are demanding the right to ignore their bargained “no strike” provision, allowing them to join in strikes of other labor organizations.
Then trying to paint the picture that we’re out for ourselves, when what we’re asking is to be allowed to honor the picket lines of other unions. Amazing.
Oh, also love the idea that we’re trying to force people in our union who don’t want to be in it. Like my reality writer friends wouldn’t like fair payment, benefits, and to be paid for their overtime work. And, like my animation writer friends wouldn’t like to get a small payment when their work is replayed, and resold.
This is amazing. I’m amazed. Thank you AMPTP for continuing to amaze.
It’s simple. Nick Counter and the AMPTP left. That’s the physical fact. No press release by IATSE or the AMPTP will change that physical fact. The new high priced PR firm may repeat it enough to make it the prevailing truth, but it will never be the real truth.
showrunner
Every time I think I’m too tired, they do something that gets my energy and resolve back. I hope this is how we’re all feeling.
Here we go again. The AMPTP is playing the game of “if you don’t want to play our way, we’re taking our ball and going home.” People who are serious about negotiating don’t walk away from the negotiating table.
Seriously, who writes these press releases? Do they really expect WGA members to rise up in arms against their guild leadership because the AMPTP tells them to?
And who is this average screenwriter making $230,000 a year? Where do they come up with these numbers?
Remember: the companies are crying wolf. They are hurting. They’re already having to give back money to advertisers. Their claims of “destroying this business” would be funny except for the terrible suffering their intransigence causes. Game shows and other non-fiction shows should be covered — they would be if the producers had to abide by the clause covering such programming in the contract they’ve approved and ignored year after year. the rest of their yowling on that point is nonsense — they’re already being investigated by the state for not paying overtime because they refuse to consider their WRITERS as employees covered by the guild. They’re not even paying these writers properly according to the time cards they have to submit every day. The idea that the WGA is asking for money the moguls don’t have is idiotic — look at the public stockholders material — an easily available assessment of their current profits and future growth in new media. And don’t believe the negotiators for the WGA are “incompetent.” Verrone et al are ready to negotiate. They’re not ready to sign off on whatever the AMPTP sets in front of them. Calling them unable to do their jobs is just a union busting tactic and must be ignored. I would have thought this AMPTP letter was the text of a YouTube video from “Roger Trevanti, Producer,” but they left out the part about “I hope you all get asshole cancer and die.”
This is just another stall tactic, not enough damage has been done YET. The companies have their little playbook and this quarter is already covered financially. It won’t be until the end of next quarter till some of the Companies start losing money, by then over 300 Million in Network Ad Revenue and shares will be downgraded by Wall Street so I don’t think they think they have to make a fair deal till the second quarter of next year which I and many of my Writer Buddies have been saying all along.
A strike past June (SAG Contract Expiration) will in effect shut down production and that may be where this is heading before we get a fair deal.
Hiring professional smear merchants like Chris Lehane won’t help this relationship AT ALL and it seems the AMPTP wanted to get these PR people on board before they walked to, in effect wage a PR War, and that is what this is now. PR War = Stalling…
This latest breakdown is simply a repeat of the tactics AMPTP depolyed in Nov, no new proposals from AMPTP after we dropped DVD increases, then when the clock struck 12, they blamed us. Same thing here, we get bullshit proposals with no math behind them, then no promised new proposals, we ask where the beef is, they walk out and blame us. It is SO lame..
Money talks, bullshit walks and bullshit is walking away again. But they can’t get very far…
See you dickheads in June.
Maybe it’s time for some of the Companies to break ranks and sign deals separately before the balance sheet bloodletting rises to waist level, Disney , CBS, you guys can NOT affor this anymore…
AMPTP to WGA:
“Surrender Dorothy!”
depressing. it is true about the streaming. there is no money there. but oh well. now what? they hold out until…?
How can we be asking for more money than comes in from the Internet when we’ve asked for 2.5% of what comes in?
Oh, the lies.
Interesting that the Producers are demanding that the wga take the five bullshit demands off the table. Reality? Share the advertising? Going out on strike with other unions? Please… It’s all about streaming, downloads, and webisodes. The download formula will be the same as the dvd but at a slighly higher rate. Webisodes should be a set fee and a renewwal fee. Streaming will basically be the same thing. The quicker we get there, the quicker we go back to work.
I want you to post, Nikki, exactly where each of these SOBs are headed for the holidays and on whose dime. I think you’ll see they are not going to Disneyland, but their villas in Europe and the islands on private luxury jets owned by their shareholders. It’s time to play very hard ball here and bring these Consolidators an Enron verdict. America is being sold to these media giants by Congress and by the big six lining the pockets of political candidates to forward medias agendas. Is there anyone out there paying attention???? I am proud the WGA is the first in line to bring them down. It can happen if the BTLs and all of Hollywood stands united. You can see they are scared because this threat that WGA should not strike with other unions means they know they are up against us all. (Where the hell did that come from?) Everyone make a stand here and shut this town ALL THE WAY DOWN. There is no way to negotiate a deal here. It’s there way or no way, but united it will be WGA, DGA, SAG, AFTRA, ITSAE way!
Semper Fi
At this point, it seems like we’re dealing with people who are focused on nothing but PR moves.
On both sides of the table.
Lock everyone in a room and throw away the key until this f’ing thing is over.
Tenacious D was fun and all… but come on.
And if personality conflicts are getting in the way? Get rid of those people…
– The WGA organizers are demanding the right to ignore their bargained “no strike” provision, allowing them to join in strikes of other labor organizations.
that was my favorite part. did the AMPTP not realize that the contract containing the “bargained no strike provision” expired on October 31st? This is what happens when they hire Clinton hacks from outside the industry to writer their press releases. But at the very least, they should have had someone in the industry proofread it. Then maybe someone would have pointed out to the authors that there are not “thousands” of writers currently employed on reality shows.
They have gone from having a PR disaster on their hands to looking like they don’t even understand the basics of their own industry. You can bet that after this press release there will be a whole new round of firings and new PR firms brought in next week.
As someone who has nothing to do with the industry, I was just following all this with interest before, but now I’m actually angry. That AMPTP press release is disgusting.
I have said a few disparaging words about the WGA in the past few weeks and still think they’ve done a good job of shooting themselves in the foot. But it’s clear that the AMPTM are the bad guys here– they can’t even write a press release worth a damn. This is going to spin VERY badly on them. Alas, I wonder if they care at all.
http://strikeadeal.blogspot.com
Below-The-Liners: Stand and be counted this Sunday at 9am – Hollywood and Highland. We need to demand serious negotiations from both sides – not this clash of egos the AMPTP and WGA’s been wasting their time with.
Also: everything the AMPTP lists as unreasonable are our STARTING POINTS for negotiation. We think their “New Economic Partnership” sucks and they think our proposals suck.
And then we negotiate and ensure we’re both equally unhappy with the deal and we all go back to work.
There’s no doubt this was just a PR move and a psychological tactic.
Who knows, they may come back next week. Maybe they want a couple more rounds of raising and then shooting down hopes before they finally engage in real negotiations.
They haven’t a shred of humanity left. They’re corporations run by their stock price, and the pesky humans are really starting to get in the way. It’s basically the Matrix with conglomerates instead of computers.
HAHAHA!
‘We were shocked that the WGA decided to walk away. So surprised in fact that here’s a lengthy and bullet note filled position paper that reads about as spur-of-the-moment as a powerpoint presentation.’ Way to prove people wrong who predicted you had planned this all along.
I heard the following earlier in the week and it appears now to be true:
The AMPTP will not return to the negotiating table until February. And when they do, they will be negotiating with the DGA, not the WGA. That’s the next play in the AMPTP’s “divide and conquer” playbook.
By the way, any dealings between the AMPTP and DGA are completely irrelevant to these Negs. At most, any deal made should be considered a metric, but that is all it is. It is incidental to our contract, at best.
There has been a lot of media coverage about this, as if it meant something. It is just another “divide and conquer” tactic the flak trades are running for the Companies. Like some transparent talking points.
AMPTP/DGA dealings have absolutely no influence on what most Writers consider a fair deal for us.
So, don’t believe any of THAT bullshit either.