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SAG, studios extend contract talks again
Negotiations, which had reached a stalemate earlier in the week, will now continue through Tuesday. The extension follows the actors union's shift on DVD residuals.
By Richard Verrier and Claudia Eller
Los Angeles Times Staff Writers
May 3, 2008
The Screen Actors Guild and Hollywood studios for the second time extended their talks on a new three-year contract, in a sign the parties are finding some common ground.
For the last three weeks, SAG and the studios have been locked in negotiations on a contract that would earn actors a larger slice of revenue for their work in the digital age. Although the talks have been amicable, both sides complained that no substantial progress had been made and were expected to break off Friday.
But a last-minute agreement to stay at the table until Tuesday came after SAG dropped its demand to double residuals paid to actors from DVD sales, a stumbling block. SAG has modified its position and is now seeking a roughly 15% hike in DVD pay. The studios have so far refused to change the decades-old DVD formula.
SAG also scaled back other demands, including an 80% jump in pay for so-called stand-in actors and a 50% increase for guest stars.
Such concessions have created enough goodwill between negotiators to keep the talks alive, said people close to the situation. However, there is no guarantee they will reach an accord in short order because a number of significant issues still divide them.
Among other things, the sides are still arguing over how much actors should be paid when their shows are streamed over the Internet, and what kind of programs created for the Web should be covered under the union's contract.
Talks reached a stalemate this week, prompting both sides to issue statements acknowledging the major gaps between them.
The studios had been poised to begin negotiations Monday with Hollywood's smaller actors union, the American Federation of Television and Radio Artists. That guild said it would postpone its discussions with the studios on a prime-time TV contract until Wednesday so that SAG's talks could continue.
AFTRA, which shares 44,000 members with SAG, recently broke off its longtime joint bargaining agreement with the more powerful union after a year-long feud.
SAG, which represents 120,000 movie, TV and commercial actors, accounts for the majority of earnings among performers. Most AFTRA actors work in daytime television, cable TV and reality shows; the union also represents a handful of prime-time shows.
Still, SAG leaders, who requested the extension, worried that AFTRA could undercut their leverage by negotiating a weaker contract. SAG also faces pressure from within its own ranks -- and the larger Hollywood community -- to secure an early pact with studios.
Indeed, both sides have plenty of incentive to avert another strike after the 100-day walkout by writers that ended in February. Another work stoppage would not only displace thousands of actors and production workers squeezed during the writers strike, it would add to losses already suffered by the studios.
Whether or not a strike occurs, the studios have not taken any chances. They have stopped greenlighting productions for this year and shuffled schedules to ensure most films wrap by June 30, when SAG's contract expires.
richard.verrier@latimes.com
claudia.eller@latimes.com
Watchdog Update: The Ol’ Dog has just learned that SAG will be releasing a statement shortly that the negotiations between the AMPTP and SAG have been extend through the week and into next Tuesday!
Meanwhile, Roberta, Kim, and have been put on the backburner again. Hmmm, I wonder if they are simmering by now.
A.L. Miller SW Editor & Chief 
--
SAG, majors agree to extend talks
Negotations will continue into next week
By DAVE MCNARY
In a sign of serious progress at the SAG negotiations, the guild and the majors have agreed to extend bargaining on a new feature-primetime deal until next Tuesday.
The SAG talks had been scheduled to conclude Friday after three weeks of no major moves by either side but the guild's willingness to scale back one of its key demands led to both sides deciding at mid-morning to continue talks for another three sessions -- pushing back AFTRA's negotiations for a second time after AFTRA OK'd the delay.
In a joint announcement on Friday -- the 15th day of negotiations -- SAG and the Alliance of Motion Picture & Television Producers said they had agreed to extend the talks on a day-to-basis until 5 p.m. Tuesday. The two sides will meet Saturday but not on Sunday.
The two sides gave no reason for the extension but it's understood that SAG's dropped its proposal to double DVD rates, opting instead for hiking the current DVD rate via employer contributions to the guild's pension and health plans.
SAG's initial DVD proposal had been a non-starter for the AMPTP, which insists that those revenues are crucial to staying in the black amid soaring marketing and production costs. The WGA had also sought a doubled DVD rate but ditched the proposal in the last session before it went on strike last fall.
The AMPTP had been scheduled to start bargaining Monday with the American Federation of Television & Radio Artists on a new primetime deal. AFTRA issued a brief statement at mid-day Friday.
"At the joint request of the AMPTP and SAG, AFTRA has agreed to postpone the commencement of its primetime television negotiations until Wednesday, May 7, or sooner," AFTRA said. "The AFTRA Negotiating Committee has granted this second extension in order to give the current negotiations between the AMPTP and SAG more opportunity to succeed."
AFTRA's negotations had originally set to start this week but SAG and the AMPTP announced on April 23 that they had extended the SAG talks for a week.
The move to give the SAG talks more time appears designed to give negotiators another chance to launch the process of give-and-take bargaining that would lead to a deal. It comes two days after the majors went public with their frustration over SAG not having budged from its initial positions -- specifically its demands for doubling of DVD rates, hikes in basic pay rates and terms in new media that are better than what the DGA and WGA negotiated.
SAG, in its only public statement about the talks, countered by disputing the AMPTP's assertions, accusing the majors of not negotiating in good faith and insisting it would not negotiate in the press.
People close to the negotiations have insisted that, despite Wednesday's hostilities, the SAG talks have remained cordial and had covered a significant amount of ground. The lack of saber-rattling contrasts sharply with the venomous atmosphere that dominated most of the WGA negotiations.
With the SAG deal expiring on June 30, both sides are facing growing pressure to make a deal sooner rather than later. SAG's been told by high-profile members to cool the rehetoric; additionally, if AFTRA makes a deal first, the smaller union could then use that pact to sign new series in areas of shared jurisdiction.
AFTRA split off from negotiating with SAG in March in the culmination of long-running series of disputes as actors on "The Bold and the Beautiful" attempted to decertify from AFTRA.
SAG hasn't yet announced a strike authorization vote for its 120,000 members. The guild's constitution requires that 75% of those voting approve the authorization for SAG to go on strike.
As for the companies, a SAG strike would immediately halt movie production and inject even more uncertainty into the entertainment business. Major studios are no longer greenlighting new features until a SAG agreement's in place; Hollywood still has not fully recovered from the 100-day writers strike; and showbiz is facing both a recession and the migration of TV viewers to the Internet.
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The following are previous articles that have since been updated.
Unproductive SAG talks will end today
Uncertainty as talks end
I guess the Ol' Dog was wrong, I figured since the board meeting was canceled for next week that the talks would be extended into at least into that time period.
By DAVE MCNARY
(5/1/08)
With Hollywood's hopes for labor peace hitting the skids for now, the Screen Actors Guild and the majors will pull the plug today on three weeks of largely unproductive talks -- with no sign of compromise by either side.
After today's talks conclude, no new SAG negotiations are planned even though the guild's contract expires June 30. And SAG leaders may even seek a strike authorization vote soon.
The 14th day of negotiations between SAG and the Alliance of Motion Picture & Television Producers recessed Thursday evening with both sides refusing to comment other than saying they'd resume talks today. The AMPTP will start bargaining Monday with AFTRA on a new primetime deal that will likely have the effect of isolating SAG.
Expectations are high that AFTRA will make a deal as early as late next week, covering a handful of shows and opening the door for it to begin taking away coverage from SAG in areas of shared jurisdiction. AFTRA split off from SAG in March in the culmination of an ugly dispute over actors on "The Bold and the Beautiful" attempting to decertify from AFTRA.
Despite that scenario, SAG hasn't budged significantly from its initial positions. With frustration mounting over the lack of progress, the AMPTP blasted the guild Wednesday over its demands for doubling of DVD rates, hikes in basic pay rates and terms in new media that are better than what the DGA and WGA negotiated.
SAG countered by disputing the AMPTP's assertions, accusing the majors of not negotiating in good faith and insisting it would not negotiate in the press.
Despite the saber-rattling, people close to the negotiations have insisted the talks have remained cordial and covered a significant amount of ground. But it's clear that SAG wants to pressure the majors with a strike threat, leading to the growing possibility that SAG's leaders will ask for a strike authorization vote from its 120,000 members.
Such a step is risky in that the measure must receive at least 75% support to be valid. The WGA strike authorization received 90% backing last October, but that came after months of hostility between the WGA and the AMPTP.
SAG national exec director Doug Allen and president Alan Rosenberg have been laying the groundwork for such a step by telling members for the past year that SAG won't follow the pattern set by the DGA and WGA. They've been adamant that the 22-year-old homevid formula needs to be sweetened, even though the WGA took that demand off the table, and that the DGA and WGA new-media terms aren't good enough given the migration of the TV business to the Internet.
But it's unclear whether actors would have the appetite for a second walkout after enduring the 100-day writers strike. Allen and Rosenberg have been under pressure from high-profile members since the WGA strike ended, with George Clooney, Robert De Niro, Tom Hanks and Meryl Streep asking that SAG get to the table quickly; in addition, more than 1,500 members -- including Amy Brenneman and Sally Field -- petitioned unsuccessfully for SAG to limit voting on the contract to those meeting a work requirement.
AFTRA has already incorporated parts of the WGA and DGA new-media deals into its network code pact, which covers shows other than primetime dramas and sitcoms. That agreement, reached in March, received backing from 93% of members voting.
Both the AMPTP and DGA issued congratulations Thursday to AFTRA on the ratification of the three-year deal.
"It is great news that at such a challenging time in our industry, you were able to improve and protect so many important provisions regarding wage increases, health and retirement contributions and new-media residuals for AFTRA members," DGA president Michael Apted said in a message to AFTRA president Roberta Reardon.
"The AFTRA Network Code contract is the third major agreement we have successfully concluded this year and the latest to incorporate the groundbreaking new-media framework that will benefit both union members and producers," the AMPTP said.
AFTRA's leaders are far more moderate than SAG's. The union has 70,000 members, including 44,000 who also belong to SAG.
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Studios slam SAG
Majors 'set the record straight' on Website
By DAVE MCNARY
The gloves have come off in the contract negotiations between the majors and Screen Actors Guild.
With the SAG talks going nowhere fast, the majors have gone on the offensive by criticizing the guild's demands as unreasonable and unrealistic. The Alliance of Motion Picture and Television Producers made the assertion at midday Wednesday in a negotiations update to members titled "Setting the record straight" posted on the AMPTP website.
Though the language was more measured and respectful than the harsh tone often employed by the majors during the writers strike, the AMPTP's message was clear: Unless SAG backs off its demands on DVD and new media soon, it can forget about a deal even if thesps go on strike.
And that raises the scenario of rival performers union AFTRA making a deal as early as next week and then capitalizing on that pact by expanding its coverage of primetime TV skeins -- at SAG's expense. The AMPTP's decision to go public with the sticking points in the talks so far appears to be aimed at provoking SAG moderates to pressure guild leaders to make a deal as soon as possible rather than stringing out negotiations toward the June 30 expiration.
Hmmm, I guess that means they want to "Let George Do it!"
In a posting on its website, SAG disputed the AMPTP assertion that it had over-reached.
"The AMPTP knows that we did not state that they had to agree to all of our non-new-media proposals," it said. "We expect the AMPTP to negotiate in good faith, and we will do the same."
The current round of talks, which launched April 15, are scheduled to conclude Friday. The majors were already set to begin negotiations with AFTRA on Monday. If SAG goes on strike with an AFTRA deal already in place, AFTRA could offer the incentive to AMPTP member companies of continuing with TV production if their new shows sign AFTRA agreements.
And how many shows would AFTRA get if SAG mandated Rule One, asserting SAG's Charter, through the AFL-CIO, which states that SAG has all acting on TV EXCEPT THAT DONE IN THE MANNER OF A LIVE BROADCAST?
Traditionally, the thesp unions have divided the landscape by granting SAG jurisdiction over all shows shot on film while AFTRA covered all electronic production, a la talkshows and gameshows; the prevalence of digital production on primetime skeins has, however, blurred those distinctions.
The lines are not blurred, as I pointed out above. What has blurred is SAG's resolve to assert its jurisdiction.
SAG hasn't yet asked its 120,000 members for a strike authorization, and it's uncertain when it would return to the bargaining table after this week. AFTRA's viewed as much more likely than SAG to sign a deal as its leaders are less assertive than SAG's, and it has already incorporated some of the WGA and DGA new-media terms into its network code deal, signed in early March.
AFTRA has already demonstrated with its lowball contracts that it is willing to sacrifice actors residuals to get contracts. In the meantime, they are taking over cable with a dozen AFTRA Basic Cable contracts like the just picked up AFTRA's "Sons Of Anarchy." from the producer of the SAG show "The Shield." Look, if you are a complaint union like AFTRA ready to roll over when producers snap their fingers, you will get all the shows. Especially, if SAG stands idly by and does nothing.
AFTRA announced late Wednesday that its members had "overwhemingly" ratified the net code deal. And the current SAG and AFTRA situation -- with AFTRA set to make the new-media deal for actors -- resembles the DGA-WGA dynamic of several months ago in which the less-militant DGA hammered out the terms, which were then largely mirrored in the subsequent WGA pact.
Get ready for Internet residuals that can net actors between twenty-three and a ninety-eight bucks when that network show is rerun FOR A YEAR on the Internet, and that's where it is all going, baby.
And though the studios have stressed that the talks with SAG have so far been cordial, the six-page update issued Wednesday made it clear that little progress has been achieved since last week's announcement that the AMPTP was giving SAG an extra week to close the "significant gaps" between the two sides.
"Candidly, we must offer the same assessment of the negotiations today," the AMPTP said. "Although both parties have spent considerable time in the negotiating room, we are not yet close to an agreement."
The key complaint stems from SAG's unwillingness to adhere to the pattern set in the DGA and WGA deals. SAG national exec director Doug Allen and president Alan Rosenberg had said repeatedly in the run-up to talks that the guild wasn't interested in following the pattern -- and it appears they have not backed off that position even with the talks in their third week and a June 30 contract expiration approaching.
The choice is a simple one, do we let the go-along-to-get along DGA decide what actors get, or do we show a little backbone and make our own deal. Unless, we do. We might as well throw up our hands, and let them negotiate for us completely. And if they do, rank and file actors can say bye-bye to making a living as a professional actor, and all perfect just one line. "Ah, will that be all, or would you like dessert with your coffee?"
After 13 days at the bargaining table, the AMPTP blamed SAG for having thrown a monkey wrench into the process by rejecting what it called "the framework for new media" that was established in the DGA, WGA and AFTRA network code pacts.
"Last week, SAG indicated that it would be willing to live within the existing new-media framework -- but only with more than 70 changes to the framework, some of which would go a long way toward making the framework unworkable," the AMPTP said.
The companies also said SAG had insisted that it would agree to the new-media terms only if the AMPTP accepted all its other demands in traditional media -- a point that SAG disputes.
"Unfortunately, these demands -- including a doubling of the existing DVD formula and huge increases in compensation and benefits -- would result in enormous cost increases that we are not willing to accept," the companies said.
A doubling of the DVD formual with 80% taken off the top by studios and producers, before actors percentage is figured in, would mean that a cast of actors, instead of spliting a whopping 12 cents on a 12 dollar DVD, would end up sharring a whopping 24cents. Enormous cost for those that are making Billions upon Billons of dollars off of actors talents.
"The SAG Basic and TV agreements are mature labor pacts for mature business. In such circumstances, employers in other industries typically negotiate reductions and efficiencies to reduce costs. We are not seeking to do this. But we cannot responsibly accept the unprecedented double-digit increases in DVD residuals and conditions sought by SAG or wage hikes that in some cases reach 200%."
It's understood that SAG's backed off on its earlier demand for a shorter promotional window for streamed shows. The WGA and DGA deals provide that no residuals have to be paid on streaming for the first 17 days for TV series (24 days on new shows) -- a deal point the WGA also fought but begrudgingly accepted for the sake of settling the strike.
It's understood that SAG's also perturbed over what it sees as more than 30 changes sought by the AMPTP in the new-media language.
The AMPTP also delivered a point-by-point refutation of the four SAG messages to members. SAG says earnings are declining, but the AMPTP says they've risen by 24% since 2003; SAG says it wants a "reasonable" rate on DVD residuals, but the AMPTP maintains that SAG's demanding a $500 million per year hike; and SAG says it takes more work to qualify for its health plan, while the AMPTP says the benefits would be "the envy of middle-class Americans."
Hmmm, I wonder how middle class Americans would like to stand at the ready, to audition for their jobs, that is when they could get an auditions, with no guarentee that they will work for months.
SAG said in its website response that it stands by its research.
"We are not surprised that the employers dispute the economic hardships that actors are facing," the guild said. "You know better. We will not negotiate this contract in the press. Instead, we are focused on reaching a fair contract that addresses your needs as professional actors."
Here's a thought, perhaps, SAG should negotiate its contract in the press. As it is now, few Amercians know what its like to be a rank and file actor, but instead think that we all live the lifestyle of those AMPTP buddies, George, Hank, and Sally.
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A.L. Miller SW Editor & Chief
A Message to Screen Actors Guild Members
Regarding TV/Theatrical Contract Negotiations
Dear Screen Actors Guild Member,
The Alliance of Motion Picture and Television Producers (AMPTP) posted a message to their member companies today on the AMPTP website. We felt it was important that we directly communicate our continued dedication to the negotiations process.
Screen Actors Guild remains committed to reaching a fair agreement with the AMPTP. To that end, we are prepared to bargain continuously, for as long as it takes.
The AMPTP knows we did not state that they had to agree to all of our non-new media proposals. We expect the AMPTP to negotiate in good faith and we will do the same.
We stand by our research and the information we provided you in our Contract 2008 Reports. We are not surprised that the employers dispute the economic hardships actors are facing. You know better.
We will not negotiate this contract in the press. Instead, we are focused on reaching a fair contract that addresses your needs as professional actors.
We will continue to update you regularly.
April 30, 2008
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