The plot thickens: WGA talks resume
Worries intensified by hard-line statements
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All those involved insist they do not want a strike.
But the talks, which were suspended March 1, resume amid near chaos: writers are scrambling to finish scripts by the May 2 contract expiration; nets are prepping a "Plan B" fall sked of reality shows for the mid-May upfront meetings; and fears grow daily about possible back-to-back strikes by writers and actors.
Worries have been compounded by the hard-line statements from leaders on both sides, along with the perception that negotiators achieved only limited progress during the six weeks of negotiations and often deferred discussion of serious issues.
During the interim, both sides showed little inclination for compromise, declaring they would not meet halfway between the current $100 million gap in the value of their offers.
"I'm concerned that both sides don't have much room to negotiate," a veteran labor exec said. "The key companies are part of mega-conglomerates that may see a strike as a chance to cut costs. A lot of WGA members may feel a strike is the only way they can get an acceptable deal."
Diplomacy shields
Both sides have attempted to maintain a mostly diplomatic exterior, with their public statements offering guarded optimism.
"We are expecting to be able to conclude the negotiations with an agreement that we can recommend to our members," WGA spokeswoman Cheryl Rhoden said. "We're confident that we can break the logjam."
But negotiators face a daunting task if they are to reach a deal, even if talks are extended past expiration.
The WGA sought major upgrades in residual formulas for basic cable, video/DVD, Fox Network and foreign TV, claiming these areas had been neglected for too long.
The Alliance of Motion Picture & Television Producers claimed the hikes would be the largest in decades and would bankrupt the companies when extended to all unions.
The companies have also stressed they face shrinking profits amid a souring economy, while the WGA has insisted the entertainment industry historically has been mostly impervious to recessions. And the writers are particularly troubled by a "double burst" residual discount proposed by companies for a 14-day TV window for new series.
'Creative rights' hurdle
Negotiators will also have to hammer out a compromise on "creative rights" issues acceptable to the Directors Guild of America. Both sides say they achieved progress on this front as the WGA has dropped its demand to eliminate the possessory credit for films.
Labor expert Daniel Mitchell, a UCLA professor of public policy and management, also noted the WGA talks could follow a familiar pattern of many industries -- little progress during early rounds, followed by serious give-and-take bargaining near contract expiration.
"It's at the point near the deadline that people stop bluffing, so it's not unusual for contracts to be settled at the midnight hour," he added. "Often, the early part of negotiations is mostly about pleasing each side's constituents."
As in the previous set of talks, AMPTP prexy Nick Counter will lead the industry side with about two dozen labor relations professionals. But unlike the Jan. 22 launch, company CEOs are not expected to attend today.
The AMPTP will again occupy the entire second floor of the WGA facilities, while the 17-member WGA team will be in the boardroom. Formal talks will take place on the second floor. As before, security will be tight to minimize distractions.
Today's session will likely be employed to recap negotiations and set schedules for the next two weeks, although the negotiations will be officially extended only on a day-to-day basis.
Both sides have agreed to re-impose the news blackout used during the previous round.
The Screen Actors Guild, which faces a June 30 expiration of its contract with producers, has set May 10 as a tentative start for its talks.
