The WGA responds to its membership

The WGA sent the following email to its members on Friday afternoon:

Fellow members:

There are a lot of rumors and questions floating around, and we’d like to address them.

HAVE NEGOTIATIONS BROKEN DOWN? No.

DID OUR NEGOTIATING COMMITTEE ASK FOR A BREAK? No.

THEN WHY THE FOUR-DAY BREAK? On Thursday, the studios and networks gave us some of their proposals, and said they needed more time to fashion the rest. Therefore talks were scheduled to resume on Tuesday.

THE COMPANIES SAY THEY ARE OFFERING US IS A $130 MILLION INCREASE. THE GUILD CALLS IT A ROLLBACK. WHY THE DISPARITY? The companies have still not explained how they arrived at their $130 million figure, but we can certainly explain how this is a rollback.

OKAY. SO HOW IS THEIR MADE-FOR-INTERNET PROPOSAL A ROLLBACK? Currently, the writer of a 30-minute prime-time TV show makes almost $21,000. The conglomerates are proposing that if that writer wrote the same show for the Internet, his or her initial compensation would be $2,600. That’s a rollback of 88%.

SO WHAT’S THEIR OFFER ON INTERNET RERUNS? Currently, the writer of a half-hour television episode makes about $11,600 when his or her episode is first re-run on TV. The companies are proposing that if that same episode is rerun instead on the Internet, they will pay the whopping total of $139 for unlimited reruns for one year--and nothing at all if it only streams for six weeks. About a third of all TV series are now being rerun only on the Internet. This amounts to an immediate 98.8% rollback. And it gets worse. If they decide to call a show “promotional,” they don’t have to pay us anything. It’s a “freepeat.”

WOW. AND WHAT ABOUT FEATURES? Are you sitting down? The companies want to be able to stream any and all feature films in their entirety, supported by advertising dollars, and pay the writers nothing. Zip.

Nada. Bupkus. A 100% rollback.

GIVEN ALL THIS, HOW IN THE WORLD DID THE COMPANIES COME UP WITH THE $130 MILLION FIGURE? Our question exactly. It’s definitely not a three-year number. As near as we can figure, their proposal might net us that total around the year 2107.

YOU HAVEN’T SAID ANYTHING NEW ABOUT DOWNLOADS. Neither have they. We are hoping that they will address this essential issue by Tuesday. Stay tuned.

In solidarity,

Nick Kazan

Howard A. Rodman

Phil Robinson

Tom Schulman

(for the Board of Directors)

As the news blackout lifts, the gloves come off

The town should have plenty to talk about by the time the WGA-AMPTP talks resume Tuesday.

The PR war over the WGA-AMPTP negotiations has amped up; the AMPTP's latest move on Friday afternoon was to release a letter to its members along with a review of the current state of its proposal to the WGA. Here's the letter; the "AMPTP Fact Sheet" is after the jump.

-- Dave McNary

To the Companies represented by the AMPTP:

On behalf of all of our member companies, the AMPTP has proposed a New Economic Partnership to the WGA. This New Partnership includes bold moves by the AMPTP in several areas of new media, including streaming, content made for new media and programming delivered over digital broadcast channels. The New Economic Partnership is summarized in the attached one-page document.

The New Economic Partnership will deliver more than $130 million in additional compensation above and beyond the more than $1.3 billion working writers already receive each year.  This could mean an increase up to $31,000 over the 3-year life of the contract for working writers which would be on top of the current average writer’s compensation of more than $200,000 a year.   With these improvements, writers remain among the highest paid employees in America.  This more than $130 million increase is believed to be one of the largest compensation increases of any major union contract negotiated in recent American history.

In addition, our proposed New Economic Partnership included increases in producer contributions to the WGA health and pension plans. This increase helps assure that writers will continue to enjoy the security of these well funded plans, which offer an array of benefits to participants that are among the most generous of any in the nation.

During our negotiations on Thursday, November 29th, the WGA asked for a halt in talks until Tuesday, December 4th to give the WGA time to study our New Economic Partnership. While we strongly preferred to continue discussions without any interruption, we also understood the WGA’s need to take the time necessary to process our groundbreaking New Economic Partnership.  We therefore were disappointed to see such a quick and decisive attack on the plan that they had asked for so much time to study.   We look forward to resuming talks on December 4th.

Between now and Tuesday, we hope that the discussion about our proposed New Economic Partnership will focus on the facts. For example, the allegation that the New Economic Partnership and its groundbreaking proposals to extend and increase payments and jurisdiction for the writers in three wholly new areas of new media is somehow a “rollback” does nothing to advance a substantive dialogue over these issues, especially given that the WGA asserted for weeks that we were unwilling to share in new media revenues (despite, for example, our ongoing payments for digital downloading).

Simply put, a proposal that increases working writers compensation by a total of $130 million is in fact a very big “roll” forward.

We remain confident that there is common ground to be found between the two sides. Our proposal for a New Economic Partnership is meant to help find that common ground, and we hope that the WGA’s leadership will thoughtfully consider both our Partnership proposal and the increasingly severe economic impacts of this strike before the WGA comes back from the bargaining hiatus that it requested and gets down to work again on December 4th. We believe to generate the necessary momentum to reach a deal, we must be at the table talking.

As we await the WGA’s return to talks next week, we must all keep in mind the basic principle that is guiding our companies through this difficult process: We have a fundamental obligation to our employees and shareholders to create a modern economic system for our industry that will allow us to prosper in the face of increasingly difficult and fast-changing competition. Other industries have tried to take the easy way out by pretending that the fundamental changes around them were not really occurring, and as a result many businesses have declined at great cost to their workers, investors and communities. We are determined to deal successfully with the revolutionary global and technological changes confronting our industry before it is too late. That is why we are so committed to a fair deal for all parties, one that gives everyone a share in the profits of success and allows our business to change and grow.

Sincerely,

The Leadership of the AMPTP

"Tonight Show" lays off staff; corporate says: "If your services are needed, we will contact you"

Today was the last day for most of the 120 staffers on "The Tonight Show with Jay Leno,” who left with an early Christmas bonus check and no guarantee of a job when the strike ended. [An NBC source puts the number at "just under 100."]

“Do we have a job when the strike ends? That’s what everyone keeps asking,” said one former staffer. “They’ve guaranteed no one a job. They just keep saying, ‘The letter explains it.”

That letter is a notice from NBC’s human resources department that says, “If your services are needed, we will contact you.”

Sources said that while some higher-level executives received severance packages, other staffers received only Leno’s traditional bonus of $100 times the number of years the staffer has been on the show.

Writers were not included in the bonuses, but one writer emphasized that “he's not being Scrooge. He just wanted to get the staff taken care of first. I can't emphasize enough how generous Jay is.” 

Others were less forgiving.

“We haven’t heard from him since the second or third day of the strike,” said a former Leno staffer. “He called on speakerphone while we were in our daily meeting and said, ‘Don’t look for other jobs, no one’s going to lose their house, we’ll get though this.’ Two weeks ago, we got the heads up that we had two more weeks (of pay) and that’s it. Everyone wondered, ‘Is Jay going to come through?’ And nothing happened. Conan makes less and he said, ‘I’m going to pay for my people.’ ”

Still on the payroll are the exec producers and a skeleton crew to answer phones. Leno was not on hand for the layoffs. Instead, Leno’s assistant notified the staff yesterday that they would get their Christmas bonus early. Leno's bonuses usually go out the week before Christmas.   

"People are devastated today because we thought that he meant something more than an early Christmas bonus," another said. "A lot of people didn't look for other work, based on Jay's assurances."

UPDATE: Insiders confirm that the staff of "Late Night with Conan O'Brien" were formally laid off by NBC today as well; the show's employees received similar letters to the ones sent to "Tonight Show" staffers. Like "Tonight Show's" team, "Late Night" employees are officially laid off effective Friday. But as has been reported previously, O'Brien will continue to pay "Late Night" staffers himself. But because they're no longer officially employed by NBC, they won't be reporting to the "Late Night" offices come Monday.

Late Friday afternoon, a spokesperson delivered this statement:

NBC regretfully informed the people who work on the Tonight Show with Jay Leno and Late Night with Conan O’Brien that their services are not needed at this time due to our inability to continue production of the shows.

-- Dave McNary and Dana Harris

Strike from the p.o.v. of non-pros

The Service Employees International Union has been one of the WGA's most ardent non-pro supporters in the strike, encouraging its members to join WGA picket lines in L.A. and Gotham and mounting the "Hey studios, do the write thing" billboard campaign. Below are two blog posts from SEIU rank-and-file-ers who've recently joined WGA events.

Their Struggle is My Struggle by Ursula Epps

I like to watch TV when I have time, shows like “Heroes” and “Bionic Woman,” “Saving Grace” and “Sopranos” reruns. This week, I met some of those writers on the picket line.

I’ve lived in Los Angeles most of my life, and I thought writers like them were very wealthy individuals. But after talking to some of them, I realize they can be unemployed for three to 18 months at a time between writing jobs. I can see why it’s important for them to receive royalties from DVDs and the Internet. The big studios are paying their corporate CEOs millions every year. And they say they don’t have enough money to pay their other employees for what they do? Without writers, these corporations wouldn’t have their profit. They are the ones who write these excellent shows and movies. If we can hold these corporations accountable to make sure employees have health insurance and decent salaries, it would improve the quality of our overall community health. I’m sticking with the writers, and I hope they stick together. Their picket line is our community’s.

Ursula Epps is a registered nurse in Los Angeles and a member of SEIU Local 721. She joined with more than 400 SEIU members to support the Nov. 20 WGA march and rally on Hollywood Boulevard.

Rain means nothing to WGA picketers

"I'm out here because I want to be able to look the Teamsters in the eye," said scribe Joseph Dougherty, one of more than 100 WGA members and supporters who braved the Friday-morning rain to participate in the Hollywood Homecoming rally outside Sony Pictures.

All picket activity today took place along the famed Greek-columned MGM edifice that spans more than a block of Washington Boulevard between Overland Blvd. and Madison Ave. (The guild intends to picket multiple locations Monday-Thursday, with Fridays reserved for events and rallies at a single site.) The setting proved fortunate: it offered a small, sheltered strip where determined, if slightly soggy, picketers could gather.

Many participants shared Dougherty's sentiment: It was particularly important to show up in the rain, enduring discomfort, to underscore their resolve to fight for what they view is a fair deal.

Pickets were particularly fired up by news sent out Thursday night by guild leaders reporting that the WGA took a very dim view of the new economic proposal put on the negotiating table by the studios.

"Whether rain, snow, sleet or bad driving," quipped screenwriter T. Jay O'Brien. As a feature scribe, O'Brien said he was particularly disheartened that the companies' proposal included no residuals for web streaming of full-length features.

"That was very upsetting," he said. "If anything, it was more energizing to us. It's even more important to show them today that we mean it."

Screenwriter Adam Farasati was also alarmed by the elements of the companies' proposal.

"The studios have given no indication that they're at the negotiating table than for any other reason than to appease the press," he said. "But it's not surprising. This just reinforces that we're in it for the long haul."

Despite the disdain for the majors' moves on Thursday, most pickets said they were somewhat encouraged by the fact that the sides have agreed to resume talks on Tuesday.

"I'd rather have them snickering in a room at each other than not be in a room," Dougherty said. "There's still a way to get this solved."

The theme of Friday's rally was highlighting veteran WGA members and special guests included former WGA prexy Chris Knopf and several members of the famed Mankiewicz writing clan: Tom, Don and John.

Today's strike supporters included a horde of sandwiches and other munchies from Whole Foods Market provided by WGA booster Lilly Lawrence, who we're told recently suffered the loss of her home in the Malibu fire. WGA member Kathy McCormick procured a "Java the Truck" coffee stand that dispensed free coffee and tea to shivering participants. And the Kaplan Stahler Gumer Braun agency had reps on hand to pass out fresh fruit and "residual gelt," aka chocolate coins.

--Cynthia Littleton

And the WGA responds...

LOS ANGELES – The following message was issued today by the Writers Guild of America, West (WGAW) and the Writers Guild of America, East (WGAE) regarding Contract 2007 negotiations:

To Our Fellow Members,

After four days of bargaining with the AMPTP, we are writing to let you know that, though we are still at the table, the press blackout has been lifted.

Our inability to communicate with our members has left a vacuum of information that has been filled with rumors, both well intentioned and deceptive.

Among the rumors was the assertion that the AMPTP had a groundbreaking proposal that would make this negotiation a "done deal."  In fact, for the first three days of this week, the companies presented in essence their November 4 package with not an iota of movement on any of the issues that matter to writers.

Thursday morning, the first new proposal was finally presented to us.  It dealt only with streaming and made-for-Internet jurisdiction, and it amounts to a massive rollback.

For streaming television episodes, the companies proposed a residual structure of a single fixed payment of less than $250 for a year's reuse of an hour-long program (compared to over $20,000 payable for a network rerun).  For theatrical product they are offering no residuals whatsoever for streaming.

For made-for-Internet material, they offered minimums that would allow a studio to produce up to a 15 minute episode of network-derived web content for a script fee of $1300.  They continued to refuse to grant jurisdiction over original content for the Internet.

In their new proposal, they made absolutely no move on the download formula (which they propose to pay at the DVD rate), and continue to assert that they can deem any reuse "promotional," and pay no residual (even if they replay the entire film or TV episode and even if they make money).

The AMPTP says it will have additional proposals to make but, as of Thursday evening, they have not been presented to us.  We are scheduled to meet with them again on Tuesday.

In the meantime, we felt it was essential to update you accurately on where negotiations stand.  On Wednesday we presented a comprehensive economic justification for our proposals.  Our entire package would cost this industry $151 million over three years.  That's a little over a 3% increase in writer earnings each year, while company revenues are projected to grow at a rate of 10%.  We are falling behind.

For Sony, this entire deal would cost $1.68 million per year.  For Disney $6.25 million.  Paramount and CBS would each pay about $4.66 million, Warner about $11.2 million, Fox $6.04 million, and NBC/Universal $7.44 million.  MGM would pay $320,000 and the entire universe of remaining companies would assume the remainder of about $8.3 million per year.  As we've stated repeatedly, our proposals are more than reasonable and the companies have no excuse for denying it.

The AMPTP's intractability is dispiriting news but it must also be motivating.  Any movement on the part of these multinational conglomerates has been the result of the collective action of our membership, with the support of SAG, other unions, supportive politicians, and the general public.  We must fight on, returning to the lines on Monday in force to make it clear that we will not back down, that we will not accept a bad deal, and that we are all in this together.

Best,

Patric M. Verrone

President, WGAW

Michael Winship

President, WGAE

AMPTP statement: WGA to look over proposal; talks resume next Tuesday

Statement just sent out by the AMPTP:

STATEMENT REGARDING AMPTP WGA NEGOTIATIONS

LOS ANGELES, November 29, 2007 – "The AMPTP today unveiled a New Economic Partnership to the WGA, which includes groundbreaking moves in several areas of new media, including streaming, content made for new media and programming delivered over digital broadcast channels.  The entire value of the New Economic Partnership will deliver more than $130 million in additional compensation above and beyond the more than $1.3 billion writers already receive each year.  In response, the WGA has asked for time to study the proposals.  While we strongly preferred to continue discussions, we respect and understand the WGA’s desire to review the proposals.  We look forward resuming talks on Tuesday, December 4.

We continue to believe that there is common ground to be found between the two sides, and that our proposal for a New Economic Partnership offers the best chance to find it.”

Total Demonstration Live with Carson Daly

Carson Daly's move to jumpstart production on his late-late-late night NBC talk show hasn't earned him many fans within the Writers Guild. Now, armed with word that Daly will be taping a musical guest tonight on an outside stage, the WGA is throwing a quickly-organized protest outside the NBC lot in Burbank.

An as-yet unnamed band will tape a set on the stage -- near NBC's California Gate on Alameda Avenue -- for "Last Call with Carson Daly" around 6 p.m. (Another band taped a segment last night for "Last Call" as well.) A WGA spokesman said striking writers and Guild supporters will be there to "protest Daly’s disappointing decision to cross the picket line."

Expect more than a few scribes to imitate Jimmy Fallon's famous -- and less than flattering -- take on Daly from "Saturday Night Live."

"Last Call" is set to return next Monday. Show airs at 1:36 a.m. weeknights.

-- Michael Schneider

Another WGA striker struck by car -- deliberate?

There have been several incidents of vehicles hitting WGA picketers as studio lot traffic comes and goes. The most recent occurred at about 10 a. m. today at the Raleigh Studios gate when, according to eyewitness A.L. Katz, Adrian Wenner was knocked down by a car and was nearly run over.

Katz, a strike captain, said the driver's actions appeared deliberate in that he was trying to use his vehicle to move Wenner out of his path. He added that the WGA had been notified and had indicated that the guild plans to file an  LAPD report. Wenner went to his doctor.

"It was kind of horrifying to watch," Katz said. "He was shaken up pretty badly. We haven't seen a lot of animosity -- 80% of people are pretty empathetic -- and we try to make sure that people's emotions don't overcome their common sense."

The WGA had no immediate comment.

-- Dave McNary

A friendly missive and a great bumper sticker from Canada

This is from John Degen, executive director of the Professional Writers Association of Canada:

Here's a quick update on what Canada is doing in support of the WGA strike. First of all, we're yapping about the strike a lot.

And, just yesterday we were all cold in support of the strike.

As well, we're selling stuff -- see attached picture. Inspired by the WGA strike and our own public support of it, we launched some Pay the Writer products on our online store.

Finally, me. I'm just all about writer issues.

Cheers,

--jd

-- Dana Harris