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DGA talks likely will happen before end of ‘07

By Carl DiOrio
Nov 15, 2007

December is now the focus for DGA-watchers.

Barring a resumption of talks between the WGA and studio reps, the directors are likely to begin their own negotiations with the Alliance of Motion Picture & Television Producers sometime next month. There appears little chance that the DGA’s much-anticipated talks with the AMPTP will be announced before Thanksgiving, so it probably will be Dec. 1 at the earliest before the parties could start talking turkey.

Historically, the DGA tends to strike its deals about six months before the end of current contracts. With the guild’s current film and TV pact expiring June 30, that alone would suggest an imminent start to its AMPTP talks.

Still, the WGA’s ongoing strike against studios and networks presents a situation that hasn’t existed since 1988. That’s not necessarily going to slow down the DGA in launching its talks, but it does suggest at least three possible scenarios:

– The WGA and AMPTP get back on track with their talks, and the DGA decides to wait out those negotiations.

– The strike continues, but the DGA — which has yet to engage substantively with studio reps about holding early talks — suddenly sees signs that its own talks could prove intractable.

– The DGA receives informal assurance that the AMPTP will embrace early talks with a welcoming attitude and directors begin negotiations while writers are still walking picket lines.

There is often a spectrum of opinions at the AMPTP over issues and strategy. But one top studio exec reflected a broad sentiment when he recently suggested that early talks with the DGA wouldn’t have to come at the expense of a long impasse with the WGA.

“We should resolve everything as quickly as we can,” the studio insider said. “So if (DGA executive director) Jay Roth were to call, I’d drive to his house right now.”

Negotiations vet Gil Cates chairs the DGA’s negotiating committee that has been named for the next round of talks with AMPTP. The committee, which will work in sync with top guild staff led by Roth, already has met several times to forge negotiations strategy.

Had the WGA’s unproductive talks with the studios dragged on beyond the Oct. 31 expiration of the writers’ contract, the DGA likely would have already engaged with the AMPTP by now. But the writers strike gave directors pause, and it was deemed necessary to wait a few weeks to see if guild picketing and studio disruptions might bring the parties quickly back together.

With little evidence of an imminent resumption of the writers’ talks in the offing, the DGA can now proceed with its own negotiations — with one big proviso.

Should the AMPTP sign off on December talks with the DGA, there also must be evidence that an attractive contract would be on offer. Most specifically, the studios must signal that they won’t bring their hated “cost recoupment” proposal into the directors’ negotiations.

At the start of the writers’ negotiations in July, the AMPTP had two key proposals. One would have revised current compensation formulas to allow studios to recoup certain basic costs before paying any residuals in the future, and the second would have delayed any new Internet residuals for three years while the matter was studied.

There is “zero chance” the directors would begin talks unless assured that the first proposal is dead, a source said. And indeed, the concept was pulled from the writers’ negotiations after it became a big impediment.

The DGA isn’t thrilled with the idea of a new-media study, either. But it’s less clear whether the guild might be willing to accept a more narrowly drawn study than the one proposed to the WGA, which rejected the proposal out of hand.

Notably, there appears broad optimism that prenegotiations assurances can be secured and that the DGA and studio reps will engage in actual contract talks soon.

If that happens, and a DGA deal is quickly secured, WGA leaders will have one big decision: use that deal as a template for its own resumed talks or continue to strike for a deal more in line with writers’ agendas. Certainly the area of new-media content could give rise to different DGA priorities than those at the WGA.

Both guilds aim to expand compensation for creative contributions on new-media content, but the directors tend to put more weight in negotiations on establishing jurisdictional rights. Also, the DGA has shown a willingness to give ground on certain compensation issues to reap gains in other areas.

Three years ago, the WGA’s contract expired, and writers worked under terms of the old pact for five months. Eyeing the impasse, the DGA reached out to management to launch its own talks, with the directors sidestepping a fractious debate over DVD residuals to secure a deal providing $60 million in health and pension gains.

The WGA ultimately accepted a similar new contract.

AMPTP floating WGA talk-athon

The Hollywood Reporter
By Carl DiOrio
Aug 17, 2007

Management is pitching the WGA on marathon, almost-nonstop negotiating sessions — but not to commence until Sept. 17.

The Alliance of Motion Picture & Television Producers has been corresponding with the guild to find dates mutually acceptable for film and TV contract talks, AMPTP spokesman Jesse Hiestand said. But other than indicating a willingness to return to the bargaining table, the WGA has yet to propose any actual dates, he added.

So late Wednesday, the management negotiators did just that, proposing a return to the negotiating room at AMPTP headquarters in Encino for near-daily sessions until the current contract expires Oct. 31. Once the sessions resume, the only off days specified in the management proposal would be Sept. 27 and 28, when some of the same officials will be involved in an AFTRA board of trustees meeting.

Holding off until mid-September would give the WGA East and West time to conduct their officer elections, a process that has been cited by some observers as contributing to the cessation in bargaining sessions since July 18.

“When we resume, we expect the guilds to provide full and detailed responses to the producers’ proposals dated July 16,” AMPTP president Nick Counter wrote in a letter to the WGA dated Wednesday.

The talks were stopped so the AMPTP could shift its attention to some final contract sessions with the Teamsters and four basic crafts unions. But those talks wrapped up Aug. 1, with an agreement now out to membership votes at locals of the five unions.

The first two sessions between the AMPTP and the WGA were marked by sharp — and sometimes public — disagreement over broad areas under discussion.

Perhaps chief among the nettlesome issues is the matter of writer compensation for new-media content. But the AMPTP also has put forth a controversial proposal to review all residuals with an eye toward allowing studios to recoup some basic film and TV projects costs before paying on residual formulas.

When asked for comment on the AMPTP proposals for resuming the talks, WGA West spokesman Neal Sacharow said late Thursday, “It’s yet to be worked out.”

Negotiations between WGA, producers stalled for now
The Hollywood Reporter
By Carl DiOrio
Aug 7, 2007

That deafening sound coming from the big negotiating room at AMPTP headquarters in Encino?

Silence.

In theory, with a Basic Crafts agreement secured and out to membership votes, reps from the Alliance of Motion Picture & Television Producers and those from the WGA can resume collective bargaining.

In practice, nothing is proving quite that easy.

Billed as a brief hiatus for the crafts talks, it now appears that the break in negotiations with the WGA might stretch beyond Labor Day. Blame a surfeit of logistical challenges and a shortage of compelling reasons for re-engaging, sources said.
Members of Teamsters and four other largely blue-collar unions are expected in the next couple of weeks to ratify a new three-year agreement with the AMPTP (HR 8/2). So with that Basic Crafts contract wrapping up, the AMPTP formally notified the WGA on Friday that its negotiators are ready to reconvene the talks with the writers.

“The AMPTP sent a letter the WGA a letter saying, ‘Give us a date for a new negotiating session,’ ” AMPTP spokeswoman Barbara Brogliatti said. “The WGA has a harder time (because) they have a number of people who are volunteers. So we have to find out for what dates they have available, as a courtesy to them.”

Indeed, several members of the guild’s 17-person negotiating committee must work around other professional obligations, and some members are from out of town. So if the AMPTP were to suggest holding a negotiating session this week, it’s dubious whether the WGA could muster a quorum of its committee to attend.
Yet there has been no official word on how much time might be needed to convene the guild committee. The parties last met July 16 and 18, before breaking off to allow the AMPTP to focus on its Basic Crafts talks.

On Monday, WGA West spokesman Neal Sacharow first said he had “no update” regarding when a third bargaining session might be held. Pressed for a further response on the AMPTP’s seeking a date for resuming talks, Sacharow relayed a brief statement from WGAW executive director David Young.

“We’ve made fair and reasonable proposals and are ready to sit down with the AMPTP whenever they are ready to negotiate,” Young said.

Sacharow declined to elaborate on the situation — though various others did, speaking anonymously.

One school of thought predicts that the WGA will drag its feet until after its officer elections are completed in late September. WGAW president Patric Verrone is running for re-election against KNX-AM newswriter Kathy Kiernan, and TV writer Michael Winship is running against TV newswriter Tom Phillips to succeed outgoing WGA East president Chris Albers.

“Patric Verrone’s not focused on the elections; he’s focused on the negotiations,” a veteran WGA watcher suggested. “He doesn’t want anything to change the perception of, ‘We’re in the middle of a major negotiations, so let’s not change horses in midstream.’ ”

Another line of logic reasons that WGA negotiators are loathcq to hold substantive talks much in advance of the Oct. 31 expiration of their current film and TV contract with the AMPTP, believing guild bargaining power rises as the date approaches. Many believe the WGA is unlikely to strike if no new pact is secured by then, believing the guild’s negotiating clout will increase as the calendar draws closer to the June 30 expiration of SAG and DGA contracts.

“The WGA is clearly stalling,” a labor-side observer said. “What else are they going to do — go out on strike Nov. 1? That would be a banzai charge.”

Meanwhile, back at WGAW headquarters in Los Angeles, guild leaders eventually must mull their strategic next step at the bargaining table.

So far, the WGA has rejected — with little elaboration at the bargaining table — a pair of separate proposals put forth by the AMPTP. Those included a since-withdrawn call for a study of new-media compensation that would have delayed expanded Internet residuals for three years.

After the WGA balked at that proposal, AMPTP demanded the guild focus solely on an even more controversial proposal to delay all future residual payments while studios recoup certain costs on individual film and TV projects. That also proved a nonstarter with the guild, but management negotiators requested a detailed response to the “recoupment” proposal.
WGA negotiators said they would need some time to present such a reply, then talks broke off for the now-protracted hiatus. So it remains to be seen whether the WGA begins resumed talks by detailing its response to the recoupment proposal.

Writers Guild of America union reveals $9.2 million strike fund

UPI News Service, 07/09/2007

The Writers Guild of America-West’s annual report revealed a strike fund of $9.2 million a week before negotiations are scheduled to begin in Los Angeles.
Representatives from WGA-West and WGA-East are to meet with management negotiators in Los Angeles beginning July 16 to begin work on a new minimum basic agreement for movie and most primetime television writers, Hollywood Reporter reported Monday. The current contract expires Oct. 31.

The $9.2 million strike fund was established in 1986 — the year after a two-week writers strike and two years before 1988’s five-month walkout. The WGA-West also maintains a Good and Welfare Fund of about $3 million. During strikes, the funds can be used to distribute loans or grants to qualifying member.

The reserves have “crucial importance” as negotiations preparations are under way, the membership and finance committee wrote, with the contract expiring in less than four months.

The guilds will jointly negotiate a collective bargaining agreement with the Alliance of Motion Picture & Television Producers. Compensation issues concerning digital media are expected to figure prominently in the talks.

2007 WGA STRIKE – It Could Be
An article printed in the Daily Variety last week, says the television industry is bracing for a WGA strike in 2007. The Writers want producers to give up more of a percentage of funds generated from new media, such as cell phone programing. The WGA is not the strongest of the industry guilds, but thy do have a lot of leverage in the television world. As far as feature film world, there would be somewhat of an effect for scripts that needed rewrites. For the most part however, there is a backlog of feature film scripts that are ‘ready to go’ in Hollywood. If there is a strike the networks will turn to a lot more reality TV. My theory on why the WGA gets pushed around a bit by the producers, to a point that they feel they have to threaten a strike. More then any TV and Film Production union or guild, the Writer’s Guild of America’s membership is made up of people who belong to other industry guilds, PGA (producers), DGA (directors) and SAG (actors). For that reason I feel the solidarity of the rank and file of the WGA is questionable. For those who hold multiple guild memberships their priorities are usually not in the best interest of the WGA, especially the PGA members. There are enough members however who are strictly writers who can force a strike. The threat of a strike should be enough to get a contract figured out. No one wants a work stoppage, the last time this happened film and TV production was a mess for about 6 months. The television industry would feel the brunt of a WGA strike or even a potential strike.

WGA stoppage to spur demand for reality
Move won’t be a gold mine for every unscripted producer
By JOSEF ADALIAN – Printed in Variety June 5, 2007
The prospect of a WGA strike has reality producers gearing up for a possible onslaught of new series orders from the networks.
But despite the conventional wisdom that says a strike would be good for the unscripted biz, a survey of industry insiders — network execs, agents, producers — suggests that’s not necessarily the case.

“I don’t know that a strike is going to be a gold mine for reality producers,” says one network vet, who, like most people interviewed for this story, asked not to be identified by name.

“We’re going to go to reality, I’m sure,” the exec says. “But I’m not sure we’ll be able to get away with doing that much more than we’re already doing.”

Indeed, unlike the last time writers walked out, in 1988, unscripted series are a staple of network schedules.

Fox’s fall lineup, for example, contains not a single scripted show between Thursday and Saturday. The CW has reality tentpoles on three of the six nights it programs.

“If in 1988 there was a 50% surge in reality, now there might be a 20% increase,” one observer says. “Reality is already a big part of the network zeitgeist.”

That said, there will be opportunities, especially for producers who can move quickly.

While big guns such as Mark Burnett aren’t the types to rush production, smaller producers with an ability to scramble might pick up some extra business.

“If someone said to us, ‘We need a show in five weeks,’ we’d be ready,” one producer asserts.

What worries some insiders is the prospect of bad reality shows getting rushed into production.

“A bunch of crap is probably going to end up on the air,” one wag says. “It’s not like there are so many good new ideas we can come up with.”

During the last labor strike, the network landscape was dominated by comedies and dramas. Now, dramas and reality shows are the most powerful genres, which means that if there’s a good reality concept out there, it’s probably already been pitched.

What’s more, “During the last strike, you had a bunch of unscripted shows that went on the air and failed,” one agent recalls. “I think the networks are more likely to order more episodes of shows they already have going.”

Of course, even that could be tough, since hit shows like “Survivor” or “America’s Next Top Model” tape months in advance. Self-contained skeins such as “Extreme Makeover: Home Edition” or “Wife Swap,” however, could easily expand production.

And shows that currently air only once a year — think “Big Brother” — could find themselves cranking up for extra cycles in-season.

It also seems likely that nets would put on more gameshows (welcome back to primetime, “Who Wants to Be a Millionaire”) and expand the number of nights they program newsmagazines. Neither move would help reality producers.

One insider believes nets could rely on unscripted fare from sister cable networks. NBC, for instance, might call up one of Sci Fi channel’s reality skeins while ABC could broadcast SoapNet’s “I Wanna Be a Soap Star.”

Eric Schotz, exec producer of “Soap Star” and head of LMNO Prods., says he’s ready if the networks need him. “You can reach me at LMNO.com,” he jokes.

But Schotz is not convinced a strike would be that great for his part of the TV business.

“There will be more reality put on the air, but to me, it’s about the quality of what you can put on the air as opposed to just another opportunity,” he says. “We should be looking to make good reality, not more reality.”

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