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Hollywood Strike Talks: Round 2
Nearly seven weeks after talks collapsed, the Writers Guild of America and Hollywood producers have agreed to return to the bargaining table next Tuesday in attempt to hammer out a new contract that will avert a potentially damaging strike. The eleventh hour talks might be the last hope, since the WGA's current pact expires May 2.
Let's hope this round of negotiations between the WGA and the Alliance of Motion Picture and Television Producers goes better than the last. Those talks fell apart March 1 over the major sticking point of residuals. Leaders of the writers union suspended six weeks worth of negotiations to consult with the guild's 11,500 members on the issue and set new ground rules for the next round of negotiations.
Screenwriters say they deserve a bigger share of the earnings pie which studios and producers now make off of the ever-profitable sale of videocassettes and rentals, and the increasing number of TV shows being rerun on basic cable and abroad.
Here's an example of just how far apart the two sides are: The WGA wants an additional $8 million in residuals over what producers have already offered for home video sales over the next three years. Meanwhile, the guild has also asked for $21 million in foreign TV residuals over the same period. Producers are reportedly willing to cough up $1 million.
All told there's a $100 million chasm dividing the two sides.
Fear of a work stoppage has even prompted Los Angeles Mayor Richard Riordan to get involved. The mayor has commissioned a study from the Milken Institute, a nonpartisan think tank, to examine the potential economic fallout the city would suffer in the event of a writers and actors strike.
(The Screen Actors Guild, whose contract is up July 1, says it won't begin negotiating with producers for a bigger cut of the Hollywood pie until the WGA is finished.)
"Los Angeles is the entertainment capital of the world and the entertainment industry has been a driving force in our city's economic recovery," said Riordan "There is no question there will be economic harm in the event of a strike [which] would devastate thousands of innocent victims who are not represented at the bargaining table, across a range of industries."
The Los Angeles Economic Development Corporation has already estimated that a combined writers and actors strike could cost the city up to $2 billion a month.
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