WGA talks expand
Guild, studios get back to work after a day off
Negotiators begin their seventh day of talks this morning at WGA West headquarters in Hollywood, following a day off Sunday. The break was the first since talks started Jan. 22.
Both sides indicated they had covered a broad range in Saturday's discussions, including residuals, Fox Broadcasting, minimums, the Internet, reacquisition, pension and health, daytime serials, documentaries, diversity, term of the agreement, separation of rights and arbitration procedures.
Friday's talks included residuals, reacquisition, soaps, documentaries, pension and health and the Internet.
Hopeful signs
Although many observers still expect the talks to end this week without an agreement, the first week saw several hopeful signs. The key development was the WGA's backing off its threat to pull the plug on negotiations at the two-week point and not resume talks until April if a deal's not in place. WGA West prexy John Wells said instead that the talks could continue past the two-week deadline if progress was being achieved.
In addition, no significant leaks have emerged so far and the teams worked during the weekend, a move that had not been agreed to until Friday night.
The WGA's current three-year contract runs out May 2. It is seeking significant hikes in residuals for cable, foreign, video and the Fox Network along with Internet jurisdiction. The companies have contended they face rising costs and depressed profit margins overall.
Stumbling block
Sources have indicated that the WGA's demand to double the video/DVD payout may be a stumbling block in reaching a final deal. Current formula, paying one-third of 1% of revenues, dates from 1985, when the union agreed to exclude 80% of revenues from the residual calculation to enable the relatively new format to succeed.
The WGA has claimed the 80% exclusion is based on a manufacturing cost of $14 per videocassette while the current cost is $3 per tape and $2 per unit for DVD.
