Gee, could the Big Media cartel's negotiating group be more unpleasant about this meeting? I said this during the writers strike and it bears repeating: Just keep talking. Just keep haggling. Don't stop talking:
July 15, 2008: Statement by the AMPTP... "SAG's negotiators have requested a sidebar meeting with AMPTP involving a small group of people from each side. Out of respect for the SAG membership, the AMPTP has agreed to the meeting but has made it clear that the meeting will be solely for the purpose of listening to whatever SAG has to say. It is important to note that SAG has declined to specify the purpose of the meeting, and that AMPTP continues to call on SAG's Hollywood leaders to accept AMPTP's final offer. The meeting will be held on Wednesday, July 16, 2008 at 1PM at the AMPTP's headquarters.
EXCLUSIVE: The Screen Actors Guild is furious over Variety's erroneous report tonight that the guild "may agree to the majors' request to send out their final offer to the 120,000 guild members at the end of July." I'm told by one insider, "It's bullshit, especially the headline." That started out "SAG to send offer to members” until it was changed after complaints to the equally misleading “SAG may send offer to it’s members”. Said another source, "Absolutely not true at this time. Irresponsible reporting." The article also makes false assertions that SAG has stalled the negotiations -- ridiculous since it's now the AMPTP's turn to respond to SAG's counter-offer. This is yet another example of the trade writer Dave McNary making up a story about the guild negotiations that has no basis in reality, just like he did repeatedly during the WGA strike. And his inaccuracies are always aimed at stirring the pot in favor of the Big Media moguls, and against the guild leaders who fight for better contract terms. Really, when is this nonsense going to stop? As I've noted over and over, Variety writes what the moguls tell it because it's so dependent on them for advertising. It's like a parasite clinging to its host - and just as disgusting.
Oops. The AMPTP should have first checked with its bosses in Big Media before making that threat to SAG leadership to lower the employer offer on the table because of the dire outlook in this "deteriorating economy" for Hollywood movies and television. As it happened a lot of the infotainment CEOs were out of town at the annual Allen & Co. media conference. And they were making statements that were a lot more optimistic than the ones coming out of AMPTP headquarters. It's yet another case of the moguls talking out of both sides of their mouth -- by claiming strong results to Wall Street and pleading poverty to Hollywood guilds. (Remember, this telling YouTube video "The Voices Of Uncertainty" put together by WGA members that featured the Big Media CEOs boasting about the behemoth bucks their companies are making off the Internet?) Here's how the moguls answered questions at Camp Allen about their companies and the economic downturn:
-- NBC Universal President Jeff Zucker: “I think we'll hold up pretty well." (AP)
-- News Corp. Chairman and CEO Rupert Murdoch: “So far, entertainment and media is doing just fine.” (Bloomberg TV)
-- Sony Corp. Chairman and CEO Howard Stringer: “Our entertainment business is in good shape.” (Bloomberg TV)
-- Time Warner ex-chairman Richard Parsons, responding to a question on his outlook for the media industry: “I’m much more bullish.”
Today, SAG issued the below statement denying media reports (not mine) that it had rejected the AMPTP's "last best final" offer. Also, I've just learned that the big actors guild has signed guaranteed completion contracts with over 500 independent productions unaffiliated with the AMPTP, while the Hollywood CEOs continue their de facto lockout by refusing to return to normal production even though SAG has said it has no plans for a strike authoritzation vote. Meanwhile, it came out today that the AMPTP threatened SAG at the end of yesterday's session. I would have reported this, but the Big Media cartel's negotiating group admitted saw fit to distribute transcripts of exec VP Carol Lombardini's closing remarks to only what it considered friendly media outlets -- the trades have it here and here -- and not to me. The trades called it a "warning": but it was a clear threat.
UPDATE:*After getting hammered over this news blackout attempt against me, the AMPTP tonight apologized "because your site is a central hub for negotiation news". Once again, this shows what a rogue group the AMPTP has become and how the Hollywood CEOs need to tighten their leash on it and get back to being personally involved in the negotiations themselves.*
I have dutifully posted every AMPTP statement about the SAG negotiations which the Big Media clique has sent me. Tonight, I emailed all the moguls and their corporate flacks to complain about this gross manipulation of information about Hollywood labor negotiations. This AMPTP news blackout against me never happened even through the bitter WGA strike. But the coverage of the SAG-AMPTP bargaining has been even more slanted towards the AMPTP than during the WGA strike by these media dependent on studio and network advertising. Today's trade headlines, for instance, accused SAG of rejecting the AMPTP's offer when in fact SAG delivered a full counter-proposal. Another story today in Variety accused SAG of stalling the talks when in fact it is the AMPTP's turn now to respond to SAG's offer.
All I can think is that the cartel is really starting to sweat now. Lombardini is the same ultra-hardliner who issued that disgusting ultimatum to the WGA during the writers strike and is understandably loathed by a wide range of Hollywood guild negotiaters. Now she's threatening SAG. "It is no secret that we are in a deteriorating economy," Lombardini said. "Our companies are not immune from the effects of this economic slowdown. It is very possible that, as a result of changing economic conditions, we will have to reevaluate the offer we have on the table." However, someone needs to remind Lombardini in particular, and the AMPTP generally, that the Hollywood studios are having yet another lucrative summer movie season with nearly every film outperforming financial expectations, while the TV networks all enjoyed rate and overall revenue increases when they wrapped up their upfront dealmaking on advance advertising commitments for the 2008-2009 season. And though they all cry poverty publicly, heads of some of the studios and networks have told me their divisions contributed $1B in profits to the balance sheets of Big Media in 2007 alone.
Here is SAG's statement:
Los Angeles, July 11, 2008 — The Screen Actors Guild national negotiating committee met behind closed doors throughout the day today discussing bargaining strategies. The negotiations team remains committed to continuing to bargain for a fair contract. "Our national negotiating committee did not, as has been erroneously reported, reject the AMPTP’s offer. Instead, we made a comprehensive counter proposal that adopted some of their proposals and offered alternatives on others. We significantly narrowed the gap between us while remaining committed to the principles of our bargaining priorities,” said Screen Actors Guild national executive director and chief negotiator Doug Allen. We will provide an additional negotiations update on Monday.
Here is the AMPTP transcript of EVP Carol Lombardini's address to SAG at the end of yesterday's negotiation:
I have been directed by all of the companies that are present here and the remaining companies represented by the AMPTP in these negotiations to respond to your reply to our Final Offer.
We thoroughly reviewed what you presented to us today. We are not surprised by your response given all of SAG’s recent statements in the press over the past few days. But we are disappointed. We are disappointed because either we have failed to convince you that this is the best possible deal you can achieve or, alternatively, because you continue to adhere to the notion that the package we have offered just isn’t enough for you, especially when comparable deals have been approved by writers, directors and actors.
It is important to be clear: What we gave you on June 30th was our Final Offer. It doesn’t get any better than that. That is the best deal you are going to achieve from us. At the end of any negotiation, both parties reach a crossroads where a tough decision needs to be made. Do we make this deal or not? I can tell you that, for us, this isn’t the best deal. There are many areas of our business that need to be addressed that this contract does not fix. But we believe, putting our wishes and desires aside, that this is the best deal we can achieve with you.
Without going into all of the specific details, as to economics, we believe we presented you an extremely fair and lucrative package, particularly given the economic times we live in. For example, the increase in the Major Role performer rate in the first year of this contract is close to 6%. That would be an outsized increase in any contract cycle, but given today’s economy and the size of increases in general in other labor agreements, this is a large bump. Adding more money to this economic package would not only be unjustified, it would be irresponsible on our part. Therefore, the money is not going to change.
As for the New Media blueprint, we have told you that we have analyzed, considered, deliberated and discussed all of your proposals and counterproposals dealing with new media. Of course, we will confirm the items that we clarified on July 2nd as part of a Memorandum of Agreement when we reach agreement. But we have also informed you that we have made all the changes and modifications to that structure that we are prepared to make in an effort to address your concerns. In our assessment, doing any more will harm the overall structure of the New Media framework that we have worked out with every other talent guild.
So where does that leave us? We understand that you want more. I’ve never participated in a negotiation where one side or the other doesn’t. But now you have to decide. You can accept this deal, hold your heads up high, knowing that you have achieved the best deal attainable. Or you can continue to refuse to accept our Final Offer.
If that is your decision, it would be inappropriate for us to allow you to leave here today without understanding the potential consequences of that decision.
First – Under this Final Offer, once the deadline passes without ratification, retroactivity is gone. That results in a smaller package than the $250 million of gains contained in our Final Offer. And of course, it gets smaller each passing day.
Second – It is no secret that we are in a deteriorating economy. Our companies are not immune from the effects of this economic slowdown. It is very possible that, as a result of changing economic conditions, we will have to reevaluate the offer we have on the table.
Third – There is no question that given the uncertainty of not having a deal, some feature productions will go on, while others will not. Each one that doesn’t go forward results in fewer jobs and lost earnings for you. The risks are even greater in television. Continued uncertainty over contract status further jeopardizes scripted programming. Once again, it all amounts to less for you.
The decision is yours to make. We encourage you to let the entire membership decide.
UPDATE: Here is the definitive answer to whether there is now a de facto strike or a de facto lockout in Hollywood. I've repeatedly opined it's nonsensical to think there's been a de facto strike when it's the Hollywood CEOs who control the movie production spigot and who've made the decision not to let films go forward even though SAG has said publicly it has no plans to even ask its membership for a strike authorization vote (step one before a strike is even contemplated). And let me also make it clear here and now that the moguls have told me the production stoppage has nothing to do with completion bonds and insurance. As one mogul clarified in response to my question about this: "Most studio movies are not bonded -- those are indie films. And no insurance, unless separately bought for huge money, insures against strikes." Another mogul emailed me when I asked if completion bonds/insurance were the studios' reasons for the stoppage, "...That has not been the focus of our internal discussions." So what has been? "Firstly, our productions are coming to an end, as planned. Secondly, it's only prudent to know there is an agreement before committing millions of dollars of production which you may not be able to get back." Meanwhile, SAG has signed more than 500 guaranteed completion contracts with independent producers of films, the top of which boast budgets between $14 million and $40 million dollars and represent in total hundreds of millions of dollars. But pro-AMPTP factions are out and about in Hollywood claiming that SAG has shut down the town. B.S.
Despite the AMPTP's prickly statement tonight, and SAG's terse one (see both below), I can tell you what really went on in today's very crucial negotiating session... Today, SAG made a full counter-proposal to the Big Media cartel negotiating group's supposed "last best final" offer put on the table June 30th. I'm told SAG and the AMPTP "got closer together today" because the union worked hard to "remove some of the differences" and "made a number of moves" in the AMPTP's direction. "SAG is now engaging the AMPTP in the process of doing the same thing," I'm told. Specifically, SAG moved closer on some economic issues, New Media issues, and some other bargaining issues not previously addressed.
In turn, SAG told the AMPTP that it had to move closer on these issues, too. The AMPTP "starts every negotiation saying they're here to bargain for 'your' recommendation. And we say, 'If you want our board to recommend an offer to our membership, then you're going to have to do better than this. Because what you've given us won't make it beyond our board.' "
SAG's national board meets on July 26th and the guild made it clear to the AMPTP that SAG "would like to have something ready between now and then that our board would be interested in unilaterally recommending to the membership."
In all, both sides spent about 3 hours on discussion, first in a big committee group for an hour and a half, then in a smaller sidebar. Right now, the AMPTP hasn't said yes or no or even maybe to SAG's counter-offer.
But there won't be any negotiations tomorrow, although both sides agreed to touch base. What's cause for concern, however, is that no future meeting is now scheduled: instead both sides will get together, a source tells me, "when there's a reason to get together so we might have a productive meeting in future".
What's next? Here are my thoughts: Now that the Screen Actors Guild wasted its political capital by losing its campaign against ratification of the AFTRA-AMPTP primetime TV contract, the AMPTP will predictably be taking every advantage of what it sees as its upper hand with the big actors union. (Funny enough, I'm told that the subject of the AFTRA vote wasn't discussed more than a couple of times today. And one insider suggested to me far too optimistically about the AMPTP, "I certainly think they understand that was no slam dunk for them.")
But a loss is still a loss. And I believe that the AMPTP's latest statement sounds as if it's ready any moment now to walk away from the negotiations, blame SAG for the stall, and issue an ultimatum -- just like the AMPTP did to the WGA. However, I can't believe the Hollywood CEOs are about to let their negotiating panel make a bad situation worse with a de facto lockout. The moguls would take a lot of heat for that, much more even than SAG, because they control the production spigot.
UPDATE: *Which is why it's nonsensical to think there's been a de facto strike when it's been the Hollywood CEOs who've made the decision not to put films into production even though SAG has said publicly it has no plans to even ask its membership for a strike authorization vote, Step One before a strike is even contemplated. Meanwhile, let me make it clear here and now that the moguls have told me the de facto lockout has nothing to do with completion bonds and insurance. As one mogul clarified in response to my question about this: "Most studio movies are not bonded -- those are indie films. And no insurance, unless separately bought for huge money,insures against strikes." Another mogul emailed me when I asked if completion bonds/insurance were the studios' reasons for the stoppage, "...That has not been the focus of our internal discussions." So what has been? "Firstly, our productions are coming to an end, as planned. Secondly, it's only prudent to know there is an agreement before committing millions of dollars of production which you may not be able to get back." Meanwhile, SAG has signed more than 500 guaranteed completion contracts with independent producers of films, the top of which boast budgets between $14 million and $40 million dollars and represent in total hundreds of millions of dollars. But pro-AMPTP factions are out and about in Hollywood claiming that SAG has shut down the town. *
As for TV production, it ramps up around July 25th.
That's why I'm hoping that both sides stay put and negotiate with an eye to that July 26th SAG national board meeting. The goal now is to put a deal together that the panel can recommend to its members. That way SAG can save face. And the AMPTP, too, since it would meet the August 15th ratification vote deadline imposed by their "last best final" offer. As I've reported previously, the AMPTP offered the WGA a total 10 last best final offers, and one ultimatum (with 2 items to take off the table that the AMPTP negotiated back on the table for the DGA). So there's no loss of face if the AMPTP tweaks the terms of its offer, and the two sides come closer. Then all of Hollywood can get back to work by the end of the month.
But, if the AMPTP walks away... well, SAG at this point doesn't even want to consider that possibility. "We'll cross that bridge when we come to it," my source told me. "We'll keep taking it day at a time."
SAG's statement tonight:
"Screen Actors Guild negotiating committee members presented the AMPTP with their response to the producers’ proposal made June 30. SAG committee members will meet Friday to discuss the AMPTP’s response. We will provide further guidance following that meeting."
The AMPTP representing the Big Media cartel issued the following statement after today's negotiations:
"Today's meeting demonstrated that SAG's Membership First contingent unreasonably expects to obtain more in these negotiations than directors, writers and other actors obtained during their negotiations. AMPTP has already achieved four major labor agreements this year with the DGA, WGA, AFTRA Network Code, and AFTRA Prime-Time. Our final offer to SAG members includes more than $250 million in additional compensation, important new media rights and protection for pension and health benefits. The refusal of SAG's Hollywood leadership to accept this offer is the latest in a series of actions by SAG leaders that, in our opinion, puts labor peace at risk. SAG's Hollywood leaders have already pursued a time-consuming, divisive, costly, and unsuccessful anti-AFTRA campaign. Any further delay in reaching a reasonable and comprehensive agreement does a disservice to the thousands of working people of our industry who are already being seriously harmed by the ever worsening de facto strike. We call upon SAG's Hollywood leaders to put the AMPTP's final offer to SAG members for ratification. The last thing we need is a long, hot summer of labor strife that puts even more pressure on a badly struggling economy and deprives audiences of the entertainment they clearly desire in such difficult times."
This is a public first for the two actor unions (although SAG prez Alan Rosenberg tried and failed to goad his AFTRA counterpart Roberta Reardon into a debate before the AFTRA ratification vote on the AMPTP deal). But now they debate each other on KCRW-FM, with Claude Brodesser-Akner moderating. (Seriously, I'm not paid enough to listen to this. But you may still be interested...)
Tonight the AMPTP issued this statement on something they call "final offer retroactivity." (But if you ask me, it just sounds like the Hollywood moguls don't want their summer vacations interrupted...):
"The Producers remain committed to making a deal with SAG as soon as possible, which is why the AMPTP's final offer would make the wage and salary increases retroactive to July 1, 2008 if the agreement is ratified by SAG's membership no later than August 15, 2008. Under the final offer, if the new agreement is not ratified by August 15, 2008, all changes in terms and conditions would become effective in the first payroll period after ratification. The Producers have included this traditional incentive in the final offer in order to get everyone back to work and end the de facto strike. The Producers' final offer includes more than $250 million in additional compensation over the course of the three year contract, as well as groundbreaking new media terms. We remain hopeful that SAG will accept our final offer and that its members will ratify the new agreement so that these economic gains can go into effect at the earliest possible period."
And SAG shot back:
"As management knows, and as we have often stated, the Screen Actors Guild national negotiating committee’s goal is to bargain a fair contract for our members. Our committee is at this very moment finalizing its response to the employers’ proposal of June 30. SAG’s national negotiating committee is scheduled to deliver that response at AMPTP headquarters tomorrow and prefers to do so in person rather than in the press."
Meanwhile the AMPTP and SAG today sparred over a letter which the negotiating group representing the Big Media cartel circulated to 120 California state legislators today as well as the full Los Angeles City Council and the Los Angeles County Board Of Supervisors blaming SAG for the current "de facto strike" that has Hollywood at a standstill.
Here's AMPTP president Nick Counter's letter to legislators:
And here is SAG's response from deputy national executive director Pamm Fair:
“We don’t think any legislators will be surprised that multi-billion dollar global companies engaged in negotiations with a union have resorted to rhetoric and mischaracterizations regarding union workers. While we have not yet seen evidence of a slowdown in production, any decrease in film and television production would be a result of the studios and networks that control the industry, not the actors they hire. Screen Actors Guild remains committed to bargaining a fair contract, and is available 24- hours a day, seven-days a week. If anyone is stalling, it’s the AMPTP by suggesting that bargaining is over, when we clearly haven’t achieved an agreement that is fair for actors and the industry.“
First, here's the AFTRA's press release with that guild's statement by president Roberta Reardon. Then below it is SAG president Alan Rosenberg's statement. At the very bottom is the AMPTP's statement. (I'll have my own analysis later...)
From AFTRA tonight:
LOS ANGELES (July 8, 2008) – The American Federation of Television and Radio Artists (AFTRA) announced today that AFTRA members ratified a new three-year primetime television agreement (Exhibit A of the AFTRA Network Television Code) reached with the Alliance of Motion Picture and Television Producers (AMPTP) by a 62.4% margin.
AFTRA—the nation’s second largest performers’ union—represents more than 70,000 actors, recording artists, broadcasters, and other talent working in the entertainment and media industries.
AFTRA National President Roberta Reardon made the following statement: “Today’s vote reflects the ability of AFTRA members to recognize a solid contract when they see it. Despite an unprecedented disinformation campaign aimed at interfering with our ratification process, a majority of members ultimately focused on what mattered—the obvious merits of a labor agreement that contains substantial gains for every category of performer in both traditional and new media.
“Clearly, this was not a typical ratification process, and it would be disingenuous to pretend otherwise. To those of us for whom labor solidarity is more than just a slogan, the idea that politically-motivated leaders of one union would use their members’ dues to attack another union is unconscionable. Working people do not benefit when their union is under attack.
"For the sake of our members, organized labor must be united, especially in a world of ever-increasing corporate consolidation. Given this, AFTRA leadership is eager to focus on several important initiatives in the months to come: Building on the suggestion of our valued supporters, we will seek to organize a summit of top actors, performers, and union leaders to engage in a thoughtful, constructive discussion of how we can achieve unity among performers—and ultimately, if feasible, merger of the performers’ unions.
"Given that working men and women accomplish more when we work together with trust and mutual respect, we will ask the leadership of the AFL-CIO AEMI ICC unions, the DGA, WGA and others in the labor community to come together well in advance of the next round of contract negotiations to explore ways of maximizing the leverage of entertainment industry workers.
"Finally, I intend to promptly review with our National elected leadership and the Presidents of all AFTRA Locals the conditions needed to restore trust to re-establish joint bargaining on our respective commercials contracts.
“I sincerely appreciate the committed work of the negotiating committee, elected leaders, the labor community, and individual activist members of AFTRA who worked tirelessly and publicly to secure this solid contract for television industry performers. I am especially grateful for the support of many joint members of SAG and AFTRA—such as those in Chicago, Florida, Houston, Nashville, New York, Portland, San Francisco and Seattle—who displayed courage in the face of potential retribution, by taking a stand against disunity with the power of truth and solidarity.”
Negotiations with the AMPTP over the AFTRA Primetime TV contract began on May 7. They concluded on May 28 with a tentative agreement that was unanimously recommended for approval by AFTRA’s 31-member negotiating committee. The AFTRA National Board of Directors overwhelmingly approved the primetime television contract on June 7 and recommended the deal to members, which was ratified today. The new contract is effective from July 1, 2008, through June 30, 2011.
And here is SAG prez Alan Rosenberg's statement:
Los Angeles, July 8, 2008 -- Screen Actors Guild National President Alan Rosenberg released the following statement today: “Clearly many Screen Actors Guild members responded to our education and outreach campaign and voted against the inadequate AFTRA agreement. We knew AFTRA would appeal to its many AFTRA-only members, who are news people, sportscasters and DJs, to pass the tentative agreement covering acting jobs. In its materials, AFTRA focused that appeal on the importance of actor members’ increased contributions to help fund its broadcast members’ pension and health benefits.Screen Actors Guild is the actors union with more than 95% of the work under this contract, jurisdiction over all motion pictures, and over 4 billion dollars in member earnings under the SAG agreement over just the last three years.
We thank the over 4,500 proud SAG members from all over this country who have signed the “SAG Solidarity Statement,” in support of their negotiators. The Screen Actors Guild national negotiating committee remains committed to our core institutional mission to improve the lives of actors and their families.
We will continue to address the issues of importance to actors that AFTRA left on the table and we remain committed to achieving a fair contract for SAG actors.”
And, finally, this is what the AMPTP has to say:
We appreciate today's vote of confidence by actors in the agreement we reached with AFTRA, and hope that it demonstrates to SAG's Hollywood leadership that there is support for the new economic relationships we have built with writers, directors and actors -- and not much support for a strike, whether de facto or real.With this AFTRA ratification announcement, our industry has now achieved four major labor agreements within the last five months. These agreements -- which offer both meaningful economic gains and groundbreaking new media rights for directors, writers and AFTRA members -- are the result of difficult negotiations and many compromises by all sides. We hope that SAG's Hollywood leadership will allow SAG members to vote on AMPTP's final offer - which would give SAG members more than $250 million in additional compensation and important new media rights.
(See my two SAG/AFTRA/AMPTP articles in LA Weekly: here and here.)
The 26th annual Allen & Co investor conference for monied moguls in Sun Valley, Idaho, hosted by Herbert Allen Jr really kept an unprecedented lid on the identities of the speakers and panelists this year. No doubt that was because of security reasons since I've found out that Jordan's King Abdullah II will speak to the confab. As for Hollywood, Jeff Katzenberg of DreamWorks Animation and Intel's Paul Otellini will make a joint presentation inside the Opera House (so expect a sophisticated dog-and-pony show about the much heralded 4D technology...). Bill Gates, Warren Buffett, Amazon's Jeff Bezos, round out the list of presenters. There also are several panels (see below). Meanwhile, the Screen Actors Guild placed a full-page ad to run Wednesday in the Ketchum-based Idaho Mountain Express newspaper (see below) to send a message from SAG's’s national negotiating committee to the entertainment industry leaders attending Camp Allen. SAG prez Alan Rosenberg explained why in a statement: "This media conference is the place where significant deals get made. We wanted to remind the entertainment media leaders in attendance that there is another important deal to be made. Actors are the creative heart of entertainment business, and our Screen Actors Guild members want to partner with our industry to invest in and share the rewards of our mutual digital future. Let’s keep talking and let’s make a fair deal.” Of course, the ad may also be seen by all the Wall Street investors and bigwigs attending the conference. (See my previous about past Camp Allens here and here.)Here's what my sources say is the confab sked:
Wednesday, July 9th
-- Presentation by Amazon.com's Jeff Bezos
-- "Gazing Into The Future" panel moderated by The New Yorker's Ken Auletta featuring IAC's Barry Diller, Google's Larry Page and ING's Mark Andresen
Thursday, July 10th
-- "Education Crisis" panel featuring Chancellor of the New York City Department of Education Joel Klein
-- "Global Perspectives" analysis featuring Allen & Co's Don Keough
-- Joint presentation by DreamWorks Animation's Jeffrey Katzenberg and Intel's Paul Otellini
Friday, July 11th
-- "The New Breed" panel including Bill Me Later's Gary Marino, Slide Inc's Max Levchin and WeatherBill's David Freidberg
-- "Where We Are, Where We Should Be" panel featuring New York City Mayor Michael Bloomberg and former U.S. Senator and Senate Armed Services Committee Chairman Sam Nunn
-- Presentation by His Majesty King Abdullah II of Jordan
Saturday, July 12th
-- Presentation by Microsoft's Bill Gates
-- Presentation by Berkshire Hathaway's Warren Buffett
TUESDAY AM UPDATE: Just as I told you, here's the AMPTP's statement:
"SAG has indicated they need more time to prepare a response to AMPTP's final offer of June 30, 2008 and SAG will respond to the Producers' final offer at AMPTP's headquarters on Thursday, July 10, 2008 at 2 p.m. The Producers remain hopeful that SAG will accept our final offer."
I think it's likely that, whether or not the AFTRA membership ratifies the negotiated contract with the AMPTP or not, the Big Media companies are prepared to play hardball. I forsee a repeat of what happened during the lowest ebb of the writers strike: the AMPTP walks away from the talks and issues an ultimatum to SAG to take certain demands off the table. Whether this speeds up or slows down an eventual contract settlement remains to be seen.
TUESDAY NOON UPDATE: SAG just issued this statement:
Screen Actors Guild will present its response to the AMPTP’s June 30, 2008 proposal at 2:00 p.m. on Thursday, July 10, 2008 at AMPTP headquarters in Sherman Oaks, CA. The Screen Actors Guild national negotiating committee remains dedicated to achieving a fair TV/Theatrical contract for SAG members as soon as possible.The SAG national negotiating committee anticipates an equal effort and commitment by the employers and their representatives to achieve this goal.
MONDAY: "I'm told that SAG and the AMPTP are still exchanging info over that new "last best final" offer submitted by the Big Media companies. But let's not be coy: the Screen Actors Guild seems to be understandably playing for time until the results of the AFTRA contract ratification vote are announced. The counting should be done by Tuesday evening, and an announcement could come close behind or by the latest Wednesday morning. So everyone's watching and waiting for the results that could change the entire nature of these actor-employer negotiations. Stay tuned...
2ND UPDATE: SAG met this afternoon with the AMPTP and said it needed more info to analyze and review the Big Media offer. So don't expect any new developments until next Monday. But probably not until July 8th when all sides find out whether the AFTRA/AMPTP was ratified. Then Hollywood travels into uncharted territory. (See my two SAG/AFTRA/AMPTP articles in LA Weekly: here and here.)
Here's SAG's statement tonight:
Los Angeles, July 2, 2008 – The Screen Actors Guild national negotiating committee met with AMPTP negotiators today to present a series of substantive questions on the employers’ proposed package. Guild negotiators and staff will further analyze and review the AMPTP’s responses over the next several days in order to prepare a response to management’s proposal. The Screen Actors Guild national negotiating committee is working hard to achieve a fair deal for actors. The committee is mindful of its obligation to advance actors’ interests and to safeguard the protections our contracts afford them. Guild negotiators are engaged in, and committed to, the negotiating process and are confident that an equal commitment from management will allow the parties to reach a fair agreement that serves the needs of Screen Actors Guild members, their employers and the industry.
UPDATE: The AMPTP issued this statement tonight:
On Monday AMPTP presented SAG with our final offer, containing more than $250 million in additional compensation for SAG members over three years, groundbreaking rights for actors in the new media area, and a basic economic framework that has already been accepted by the DGA, WGA and AFTRA in four separate labor negotiations this year. On Wednesday, we met at SAG's request for 4 hours to answer SAG's questions about our final offer. SAG asked for more time to study our final offer and indicated it will contact the Producers on Monday. We remain hopeful that SAG will advise that it is accepting our final offer. No further meetings are scheduled.
Previous: I hear that today's negotiating session will probably just be a preliminary discussion about the AMPTP's "last best final" offer made Monday to SAG. The actors guild will still have to do a comprehensive analysis and further review.
I've learned that SAG has just hired Sitrick and Company, the big strategic communications firm, to help with media relations for its AMPTP negotiations. Whereas AFTRA has had the small strategic communications firm 42West working for it for months and months. So, depending on your POV, the screen actors guild either saved a bundle of dough or should have spent a bundle of dough much earlier. That said, both PR firms are located in Los Angeles. And, like SAG and AFTRA, they have a history with one other. 42West's Allan Mayer worked for Sitrick and Company for 9 years, five of them as a partner. Sitrick's firm has long specialized in worldwide crisis PR, but Mayer became tired of the oops-we've-got-to-quickly-clean-up-this-mess stuff that sends major moolah Sitrick's way. It was an amicable parting: though Sitrickwasn't thrilled at losing Mayer, the boss did let Allan out of his contract in October 2006. And then Mayer started the LA-based strategic communications outpost of NYC showbiz flackery 42West founded by Leslee Dart. Sitrick then went on a hiring binge, and now a lot of ex-journalists work on his showbiz-related accounts. Though Sitrick and Company has a much bigger strategic communications business, 42West is an entertainment powerhouse. This'll be the Olympics of union PR games!
(See my two SAG/AFTRA/AMPTP articles in LA Weekly: here and here.)
This ridiculous AMPTP ad runs in Wednesday's trades despite the fact that the Screen Actors Guild has stated that it has no strike plans. But the Big Media cartel would rather engage in destructive fear-mongering rather than explain why it offered the WGA at least 10 "last best final' offers during those negotiations:
(See my two SAG/AFTRA/AMPTP articles in LA Weekly: here and here.)
I wouldn't get too excited about this 11th hour "Last Best Offer" by the Big Media cartel before SAG's contract expires at 12:01 AM on July 1st. Because WGA exec director Dave Young had already informed his SAG counterpart Doug Allen that the AMPTP offered the writers "at least 10 last best offers" before a contract settlement was finally reached. SAG has said it will keep bargaining and has no plans for a strike. It said the AMPTP offer looks like the AFTRA contract but the screen actors agreed to examine it before the next negotiating session on Wednesday. So there will be no last-minute theatrics tonight by either side, which means Hollywood can get a good's night sleep. (Although the British press headlines for Tuesday are blaring "actors strike" as if a labor action is as imminent as, say, tomorrow. Get a clue, people.)
SAG statement:
Los Angeles, June 30, 2008 – The Screen Actors Guild national negotiating committee has bargained with the AMPTP for the last 42 days and remains committed to negotiating a fair deal for actors as soon as possible.
The AMPTP today delivered a last-minute, 43-page offer that upon initial examination appears to be generally consistent with the AFTRA deal, particularly in its provisions relating to new media. The union is reviewing the complex package and will prepare a response to management once that analysis is complete.
The parties are scheduled to meet Wednesday, July 2, at 2:00 p.m.
“This offer does not appear to address some key issues important to actors. For example, the impact of foregoing residuals for all made-for-new-media productions is incalculable and would mean the beginning of the end of residuals,” said Screen Actors Guild National Executive Director and Chief Negotiator.
The Screen Actors Guild Codified Basic and Television Agreements covering television programs and motion pictures expire tonight at midnight. Work will continue and all SAG members should report to work and to audition for new work past the expiration date until further notice from the Guild.
AMPTP statement:
Our industry is now in a de facto strike, with film production virtually shut down and television production now seriously threatened. In an effort to put everyone back to work, the AMPTP today presented SAG our final offer - a comprehensive proposal worth more than $250 million in additional compensation to SAG members, with significant economic gains and groundbreaking new media rights for all performers.
Our $250 million offer is consistent with the four other labor agreements already reached this year with DGA, WGA, AFTRA Network Code and AFTRA Prime-Time Exhibit A. In addition, our offer addresses issues that SAG identified as being of utmost concern to its members, including tailoring our new media framework for SAG in areas such as feature films and significant gains for working actors.
In short, our final offer to SAG represents a final hope for avoiding further work stoppages and getting everyone back to work. That is our goal, and we hope it is shared by the members of SAG. The economic consequences of a work stoppage would be enormous. If our industry shuts down because of the unwillingness of SAG's Hollywood leadership to make a deal, SAG members will lose $2.5 million each and every day in wages. The other guilds and unions would lose $13.5 million each day in wages, and the California economy will be harmed at the rate of $23 million each and every day.
As SAG's leadership considers our final offer, we will continue for now to work under the terms of the old contract as current productions wind down.
Background Materials
Negotiations History and the De Facto Strike
SAG's Hollywood leadership has, by its own design, created the difficult predicament that SAG's working actors now find themselves in. Immediately after the WGA settlement, on February 14, 2008, we invited SAG to engage in early negotiations but the Guild's Hollywood leadership insisted that only last-minute bargaining can bring notable gains. Calls for early talks were further ignored as SAG engaged in a W&W process that got underway months later than usual because of the Hollywood leadership's longstanding campaign against AFTRA.
Since talks finally began on April 15th, we have spent 42 days attempting to convince SAG's Hollywood leaders that we should build upon the New Media Framework already established in four different labor agreements this year, with DGA, WGA, AFTRA Network Code, and AFTRA Prime-Time Exhibit A.
In early June SAG's Hollywood leadership announced an anti-AFTRA campaign, and since that time SAG's Hollywood negotiators have squandered almost a month of negotiating time trying to defeat AFTRA's tentative agreement instead of making its own deal.
The result of SAG's stalling is a de facto strike that is inexorably bringing our entire industry to a full stop. Our final offer is designed to bring an end to this de facto strike and put our industry back to work.
The Economic Impact of an Industry Work Stoppage
If SAG rejects our offer and continues with its misbegotten anti-AFTRA campaign, SAG's Hollywood leaders will unnecessarily harm not only SAG members and sister Guild members, but also the tens of thousands of below-the-line workers whose families depend on our industry and the millions throughout California whose businesses benefit from our industry's growth. With each passing day after June 30th, there will be less work for those whose livelihoods depend on our industry.
SAG participated in the WGA strike and saw first-hand the economic damage it inflicted on the industry and the thousands of workers and businesses that had no stake in the fight. If our industry shuts down because of the unwillingness of SAG's Hollywood leadership to make a deal, SAG members will lose $2.5 million each and every day in wages. The other guilds and unions would lose $13.5 million each day in wages, and the California economy will be harmed at the rate of $23 million each and every day. A halt in production will also bring economic harm to a number of communities around the country where film and television production bring millions of dollars into local economies.
Roadblocks
The producers were put in a challenging position by having to bargain separately with AFTRA and SAG for the first time since 1980. After 17 days of tough negotiations, we reached a tentative agreement with AFTRA but have yet to do the same with SAG after more than twice as much time at the negotiating table.
With four major agreements concluded with the Guilds this year alone, the Producers entered the SAG talks with eight narrowly tailored proposals meant to get an agreement that much quicker. Unfortunately, SAG came in with 36 proposals - including several true deal-breakers - and thus put itself in the position of having to work harder to find common ground. While we have made some progress, SAG continues to hold to several of these unacceptable proposals including increases in DVD residuals, restrictions on product integration and excessive increases in money and schedule breaks, stand-in minimums and mileage increases.
In addition, SAG is seeking to undermine the New Media Framework that we have constructed with three other Guilds. This includes a demand that SAG have exclusive jurisdiction in content made for the Internet, which would prevent AFTRA from having the shared jurisdiction that it bargained for only a month ago.
Making the Framework Work
So far this year, the Producers have reached four major Guild agreements - DGA, WGA and two with AFTRA - that build on a fundamental set of new media terms. These terms are groundbreaking for a number of reasons. First, at no point has the industry ever established so many residual formulae and jurisdictional agreements in one negotiation cycle. Through a series of major concessions, the Producers have established standards for permanent downloads, Internet streaming, made-for new media productions and the use of clips in new media.
The New Media framework offers terms that are rich by traditional standards but also gives the Producers some flexibility to adapt and experiment. Most of the residuals are based on a percentage of revenue that matches the best existing residuals in the SAG contract. Further, the New Media framework allows full access to the Companies' un-redacted new media deal memos and includes a Sunset Clause so that the parties can revisit the terms in three years with a better understanding of how the market is developing. The New Media Framework has been adapted to the unique needs of SAG by preserving performers' right of consent over non-promotional uses of their clips in new media, and securing a definition for "covered actors" in low-budget original made-for new media. In short, the Producers have now proven they can make the framework work for all Guild members, and there is no reason we should not be able to do the same with SAG.
The AMPTP's Final Offer
Our final offer is worth more than $250 million to SAG members over the course of the three-year deal, over and above what SAG members would have made under their old contract. Our final offer includes significant gains in minimums, pension and health contributions and terms for working actors. In addition, we have offered groundbreaking new media terms - with fair and appropriate modifications for actors -- that have already served as the cornerstone of four other major Guild agreements this year, including one that ended the 100-day WGA strike.
We hope that SAG's Hollywood leadership will not make the tragic mistake of misleading their members by suggesting that additional stalling will lead to a better offer at a later time. We have compromised again and again this year to reach four major labor agreements -- agreements that satisfied the DGA, WGA and AFTRA -- and we have now reached the end of this process.
AMPTP Final Offer Fact Sheet
The Producers' final offer includes groundbreaking terms and residuals for actors in all forms of new media, as well as significant increases in minimums, pension and health contributions and terms affecting working actors.
MINIMUMS:
Increase minimums by 10% over the course of the contract - 3.5%, 3%, and 3.5%.
Increase network primetime rerun ceiling by 2.5% in the first and third years of the contract.
PENSION & HEALTH:
Increase contributions by 0.5% in second year of contract, bringing SAG's pension and health rate to 15% - the highest Guild rate in the industry.
GUEST STARS:
Increase the premium payment over the day player rate from 7.5% to 10%.
BACKGROUND PERFORMERS:
Increase the number of covered background actors in television from 19 to 20 and on features from 50 to 52.
MONEY BREAKS:
Increase the trailer money break from $2,500/week to $3,000/week.
Increase three-day performer overtime money break from $2,700 to $3,000.
SCHEDULE BREAK:
Increase weekly salary figure for Schedule B performers from $4,400 or less per week to $4,650 or less per week for TV and from $5,500 or less per week to $6, 000 or less per week in feature film.
NEW MEDIA:
Establish residuals for streaming television programs and features.
Establish jurisdiction and residuals for derivative and original made-for New Media programs.
Doubling of residual rate for permanent downloads.
Preserve performers' consent over non-promotional uses of clips in New Media.
Broad definition of "covered performers" in low-budget New Media productions.
Full access to Companies' un-redacted New Media deal memos.
Sunset Clause to protect both sides in future negotiations.
As soon as the striking Writers Guild went back to work, the Hollywood moguls and Screen Actors Guild secretly held their first confabs. In late February, SAG national president Alan Rosenberg and national executive director Doug Allen had a meet-and-greet with Disney CEO Bob Iger. Then, the guild duo agreed to confer again with Iger plus News Corp No. 2 Peter Chernin (the pair credited with backchannelling their way to a WGA strike settlement). This was exactly what SAG leadership had told members they would do: hold informal get-togethers with the moguls to lay groundwork for formal bargaining.
But the March 3rd sitdown didn't go well. As a source told me, "When the SAG guys said they're not going to accept the DGA or WGA deal and want to renegotiate DVDs and New Media, Peter said, 'Then I guess we have nothing to talk about.'" Rumors immediately spread that the "two Allens" had blown it by being hotheads. SAG tried to set the record straight. "The tone and tenor is completely false. There was no hyperbolic rhetoric. Conversations were cordial and constructive."
It was then that the Hollywood CEOs came to a collective decision about how to proceed with the SAG negotiations. Had the Big Media managers been interested in a quick settlement, they would have agreed that Chernin and Iger go back to backchannel bargaining. Instead, the moguls decided to change up the way they would conduct the contract talks for Hollywood's biggest union: they decided to hand the negotiations back over to their AMPTP. In other words, back to Nick Counter for his last hurrah as the cartel's negotiator, and back to the studios' and networks' labor lawyers who had grown increasingly restless for more control over the process. In fact, several moguls have admitted to me that, since then, they haven't even bothered to read the memos that their labor lawyers file each week. "I told my people, 'Don't bother me unless there's a breakthrough,' " one studio bigwig informed me.
The result is that Counter and this crew have been running every facet of the SAG-AMPTP negotiations right now. Little wonder that they're stalemated. And the moguls have been content to view the status of the talks through their reps' prism, no matter how skewed. In fact, one studio boss didn't even give it a second thought when he received a late April memo from his labor negotiator that warned, "We believe that if a deal can be made with SAG without a strike, the earliest we'll conclude it will be July 15th."
Frustrated, Doug Allen met four weeks ago with Bob Iger and CBS boss Les Moonves in the Disney honcho's NYC office. There were some discussions of issues like New Media, product placement, clips consent for New Media, and DVD residuals. But the message conveyed by the moguls was a deliberate brush-off, according to both sides, along the lines of: "Guys, let the process continue. The CEOs are not going to get involved unless its June 24th and everyone is close to a deal. Then they'd roll up their sleeves. But they need to hear that or else they don't plan on getting involved." A SAG source found the implication "disturbing", and even more so when AFTRA breezed through its talks with the AMPTP and reached a deal in a scant 17 days. It was deja vu writers strike all over again, only this time AFTRA was playing the DGA's role and SAG the WGA's.
So the Two Allens went to visit the different moguls in their corporate enclaves. Once again, the SAG leaders' request for the Hollywood CEOs to get involved in the talks fell on deaf ears. As a mogul explained to me, "We did AFTRA in the room. We did the DGA in the room. It's ithe preferable way of doing it. That's what their job is. This is not supposed to be done by us per se."
Word leaked out to the media about SAG's June 2nd meeting at Sony Pictures Entertainment in particular, and a studio spokesman issued this statement, "There was a frank and cordial exchange of views, and we said how important it was to the industry that a deal be reached as soon as possible. And the best way to do that is by negotiating with the AMPTP, so we hope everyone's energies can be focuse in that direction."
At Sony, Rosenberg and Allen sat down with SPE chairman Michael Lynton, considered a moderate among the moguls, and Jean Bonini, seen as a militant among the labor lawyers. Among the points made by the Two Allens were their extreme disappointment that the moguls decided to negotiate first with smaller AFTRA and leave bigger SAG hanging. Lynton expressed disapproval at SAG's intent to oppose the AFTRA contract. "Our view was that the best place to focus their energies would be in the AMPTP negotiations," a Sony insider told me.
And when Rosenfeld and Allen this time asked the moguls to get individually involved because the AMPTP seemed to be engaged in delaying tactics, the SAG duo were turned down cold. "This was not in any way a separate negotiation," a source explained. "It's a one-time courtesy meeting and no others are expected." When told that strategy would lead to a longer de facto strike, not a shorter one, the moguls exhibited no sense of urgency. Called on that by the SAG pair, Lynton turned angry and pounded the table with one hand, 'Do you think I like having my production facilities idle?"
All the more reason it came as a huge surprise to SAG leaders when, on June 18th, a story on the Variety website was posted under the headline, "Chernin, Iger May Resume SAG Roles." Doug Allen immediately reached out to Iger and left the CEO a message asking whether it was an invitation. Iger called him back five days later and reiterated that the moguls were not getting involved this time around. ("That Variety story was just flat-out wrong," another Big Media bigwig told me. Not surprising since its author Dave McNary kept writing untrue articles during the WGA strike.)
In fact, Iger and Allen had a prickly conversation. I'm told that Iger said, "Why don't you just take what the writers and directors took." To which Allen responded, "Just because we're the last ones at the table doesn't mean we don't get our turn at the table. Actors have particular issues that are not dealt with in the DGA or WGA deals or because we cover 100% of motion picture actors."
There have been no mogul/Allens communication since, I'm told.
So right now the studios and networks claim to be counting on its AMPTP negotiators even though, during the starting day of the AMPTP-SAG official negotiations, "the first thing that came out of Nick Counter's mouth was, 'These proposals are unreasonable. Well, I guess you'd better prepare for a strike.' "
Before talks began, the dilemma for the AMPTP all during the writers strike had been the incessant murmuring throughout Hollywood to "Wait for SAG". Because as the biggest and most powerful Hollywood union, SAG earnings over the last three years of its 2005-2008 TV/theaterical contract is more than $4 billion in earnings to actors. Somehow the AMPTP had to undermine the union's mystique. The employers cartel found a willing and ambitious collaborator, AFTRA. whose total earnings over the last 3 years on the same contract totaled only $40 million. (FYI: no one officially from AFTRA has yet to email me disputing this figure or any of my reporting.)
Whatever AFTRA negotiated or didn't negotiate should have been a mere afterthought. Instead, the AMPTP and AFTRA (both of whose statements to members and media at times have been nearly identical) claimed that the smaller union's tentative deal should be the template for SAG in these negotiations. "On what planet? Well, one where AFTRA wants to undercut SAG rates and sell out actors to secure more jurisdiction," one SAG insider bitches. "For all the cries that SAG is the membership first guild, AFTRA's weak deal makes it the producers choice. SAG really is the only true union actors have. The AMPTP's strategy is to make AFTRA a low-cost union alternative."
Of course, the moguls tell me they won't exploit AFTRA's new contract to give it preference over SAG for jurisdiction over new TV shows. Oh, puh-leeze. "I suppose we could. It's doubtful. But it could happen. I don't see us trying to stick it to SAG. But it is in our rights to do that," one network honcho mused to me. If that starts to happen, SAG pledges to switch into "super high-outreach mode'". It doesn't help that the AMPTP walked away from the table in May in order to make a deal with AFTRA. Few people know that, when talks were resumed between the two sides after the enforced hiatus, the AMPTP refused to even offer the big actors guild either the WGA deal or the AFTRA deal. Instead, the Big Media cartel forced SAG to negotiate up from ground zero for weeks on end so that only as of now is the lousy AFTRA deal even on the table. How is that fair pattern bargaining?
"Since returning to bargaining with SAG, the employers have dragged everything out in order to slow the pace of negotiations while furiously dialing the media to background them on how the SAG team is not taking it seriously," a SAG source tells me. "Doug and Alan are really just disappointed in these people that they're truly are so juvenile. They're not willing to even make the deal they made in the past. Why does the union submit to this process when it's such a colossal waste of time? These weeks have been just what anyone might expect: so completely predictable, so unoriginal, and so boring. And there's no one in authority at AMPTP to make a deal."
SAG insists it has made concessions on a number of terms and will tweak some more. The biggest surprise came three weeks into the process when SAG agreed to withdraw its demand to double residuals from DVD sales and instead ask for what would effectively be a 15% hike in DVD pay. But SAG complains that the AMPTP has not made counterproposals to SAG's proposals. "Truly, they have not tried to negotiate at all," a SAG board member gripes. "Obviously, their only job description is 'Don't make a deal.' "
While Nick Counter's methodology is to craftily and contemptuously maneuver the unions into negotiating against themselves and taking issues off the table just for the promise of AMPTP bargaining, he and the other reps go on and on inside the talks about how there's nothing they'd like more than to be partners with SAG. To which a SAG board member responded to him one day, "There's nothing about what you've done over the last 3 years that suggest you want to be partners."
The AMPTP also constantly makes comparisons during the talks between actors cira 1997 and 2007 in terms of earnings. But that sparks SAG to snark, "Are you now going to announce how much the corporations made in 1997 versus what they made in 2007?"
SAG leadership, rightly or wrongly, have refused to go public with their many complaints during much of the negotiations with the AMPTP. However, the moguls keep using the mainstream media and the trades as its mouthpieces. So both sides sit down together and try to bargain, but it's the AMPTP's news claiming SAG is stalling that gets play. The AMPTP also sends out stealth press releases bashing SAG. This tactic was used on the WGA as well. Most recently, SAG and the AMPTP sat in negotiations going over the guild's new media proposals which SAG had just changed. "And no one even made mention of the press release brutally badmouthing SAG. To get around the media blackout, the AMPTP sent it to company members and didn't put it on website," the actors guild member recalled.
Still, overt acrimony is being kept to a minimum, so the mood is outwardly cordial. Much of that is due to the personality of Doug Allen, whose even temper and friendly demeanor is disarming to Nick Counter. Despite his encyclopedic command of contract minutiae and his physically imposing size dominating the proceedings, Allen "knows when to stand down and let others handle areas that are their expertise" like John McGuire, SAG's senior advsor based in New York whose specialty is product integration. "That confidence comes from Doug dealing with the NFL on multi- mutlti-million dollar contracts."
However, the WGA's Dave Young was a far better labor organizer. The actors have yet to use YouTube effectively for their side, which the WGA did so cunningly, or many of the other PR weaponry available to the communications-savvy . For instance, there's only been one big SAG solidarity rally -- and that was demeaned as little more than the debut of its anti-ratification Down With AFTRA drumbeating. Nor have the actors turned the New Media boasts of the Hollywood CEOs and their Big Media parents against them.
SAG also has not adequately explained to members what the guild sees as its leverage opportunities now. SAG has long felt that pressure from within the shutdown movie industry would beat the AMPTP. Because if this is drawn out by employers, then some Oscar-worthy films may not be completed in time to screen them for the Academy Awards.
But probably no single planned event had more impact to end the WGA strike than when both SAG and the WGA planned to meet with CBS institutional investors and complain. Here's what happened: CBS Inc boss Les Moonves had an off-the-record dinner during the strike he later described to pals as "extremely pleasant and productive" with WGA leaders Patric Verrone and David Young at the Four Seasons Hotel in Beverly Hills. A few days later, the mogul returned to NY only to discover that Young had helped organize a conference to talk to CBS institutional investors about how much the strike was costing and how much the corporation was losing as a result. "David, we just had a terrific dinner. This will not be helpful to bring in the investor community and tell them your side. I'm asking you to call it off," Moonves said in an urgent phone call to Young. The guild executive director would only cancel the meeting if Moonves pledged to pressure the rest of the moguls for a quick end to the strike. Moonves did, and Chernin and Iger got the media credit. Blackmail is a sound strategy that SAG could use on the Big Media companies this time around.
In addition, the big actors guild can try to leverage Big Media's hefty force majeure liability payments ranging from $10M to $60M per company left over from the writers strike and still owed to SAG, which has offered to engage in reasonable settlement talks with the AMPTP only if progress on the contract is made. "It's a huge liability that the companies are worried about," a SAG board member explained. "The employers reneged on the collective bargaining agreement and even changed the language in the contract. But our attorneys have been winning arbitrations on most of these issues."
So the sooner the moguls take over their contract talks with SAG, the sooner all of Hollywood can get back to work.
Los Angeles, June 29, 2008 – Screen Actors Guild released the following statement from SAG National President Alan Rosenberg: “We have taken no steps to initiate a strike authorization vote by the members of Screen Actors Guild. Any talk about a strike or a management lockout at this point is simply a distraction. The Screen Actors Guild national negotiating committee is coming to the bargaining table every day in good faith to negotiate a fair contract for actors.”
The sense of panic among actors, writers, directors and below-the-liners is palpable in Hollywood right now. Matched only by the angst of agents whose phones aren't ringing, and out-of-town journalists struggling to write "strike sequel" stories for Monday. Strange, isn't it, that the only Hollywood types without any visible flopsweat from the de facto shutdown of production are the network and studio moguls. Because they are the puppeteers pulling everybody else's strings. From behind the scenes, they order Hollywood to jump, and the town asks how high. And never more so than during all these guild negotiations. If only the entire industry could stay focused on the actions of Big Media and start pressuring the Hollywood CEOs to put people back to work. But instead everyone's attention has strayed to the carnival sideshow of SAG vs AFTRA, and AFTRA vs SAG, and Big Star vs Big Star, and all the other diversions in an already confused situation. Now take a deep breath and calm down. To understand what's going on right now, I first need to ask you to do the following: reflect on everything you knew surrounding the writers strike, and then throw it all out the window. What's going on with SAG and AFTRA and the AMPTP is the complete opposite of what happened a few month back. The writers were for the most part united. The actors are divided to the point of distraction. The writers went after the AMPTP and the Big Media behemoths. The actors are going after each other. The agents and moguls backchannelled negotiations with the WGA. Hardly any backchannelling is going on right now between the moguls and SAG, while the agents are sitting on their hands. All the moguls kept close tabs on pre- and post-strike talks with the writers. Now some CEOs are so disengaged they're not bothering to read their labor lawyers' memos, much less to demand updates. The writers strike crippled television while movies went virtually unscathed. But the de facto strike or de facto lockout, depending on your POV, has seemingly halted moviemaking while television production continues mostly uninterrupted.The result is that Hollywood has to rewire, reboot and rethink everything. In this case, past doesn't have to be prologue. There doesn't have to be a strike. In fact, I can definitely tell you that SAG has "never suggested that a strike was an objective or essential," I'm told by an insider. "Yes, it is an option. But SAG leadership has not been the ones threatening it or sabre-rattling." And another insider puts it even more forcefully: "Not only is there no strike plan, there is no strike authorization, and there is no requirement that SAG has to go on strike once the contract expires on June 30th. It's not uncommon in labor disputes for union members to agree to extend the contract or to remain working under the existing terms of the previous contract while negotiations continue."
The Screen Actors Guild released the following statement Sunday from national president Alan Rosenberg confirming it's not in strike mode: “We have taken no steps to initiate a strike authorization vote by the members of Screen Actors Guild. Any talk about a strike or a management lockout at this point is simply a distraction. The Screen Actors Guild national negotiating committee is coming to the bargaining table every day in good faith to negotiate a fair contract for actors.”
And yet there are highly organized factions at the top of the studios and networks, IATSE locals, AFTRA leadership, and even SAG's own board that want to scare everyone into thinking a walkout is inevitable unless there's complete contract capitulation by SAG leadership. I'm here to tell you this is untrue. So is SAG, which told members Sunday: "Unfortunately, there are a few press reports and blogs erroneously reporting misinformation based on false statements made by a few people who oppose our objectives to continue negotiating for a fair contract. Some have even implied that a strike is looming this week. Don’t let these scare tactics fool you."
Yes, there's a countdown to June 30th when SAG's contract with the AMPTP expires at midnight. What happens then? In all likelihood, the two sides will continue bargaining. (After all, the AMPTP is on record saying that the only reason it left the negotiations with the WGA after the writers' contract expired is because the guild called an immediate strike.)
A more defining deadline is July 8th when AFTRA announces its ratification vote results. So what happens then? Again, not a SAG strike. The guild's leadership understands that there's no urgency within the membership at this time for such an extreme call. Which is precisely why there's no impetus atop the guild to even consider holding a strike authorization vote. If one were held and no authorization given, SAG would suffer a psychological blow from which it probably couldn't recover this contract cycle. Ergo, no push for a vote.
However, it's underhanded for AFTRA to try to put one over on its members with language that a "yes" vote ratifies its recently drawn up AMPTP contract but a "no" vote doesn't just send the pact back to the negotiators to try for better terms but actually puts in motion something far more draconian which is to authorize the AFTRA board to call a strike.
Will AFTRA members ratify the new contract with the AMPTP? Two weeks ago, I would have said definitely. Last week, probably. And this week, I really don't know. All anyone is operating on is anecdotes and tea leaves. But every day that passes before that announcement is made, AFTRA gets more shrill and hysterical, and SAG gets more over-reaching and arrogant, as they battle over 44,000 dual members. Which is why I felt before, and still feel now, that SAG's anti-AFTRA ratification campaign was a big waste of time. Even SAG's board is divided on this issue. SAG leadership's explanation to its members is that a "no" vote is crucial to let the moguls know that AFTRA's lousy deal (undermining residuals, clips consent and other primetime network issues valued by actors who have those protections under SAG) won't go down with dual members. But the reality is that, even if ratification is rejected, AFTRA will still find a way to suck up to the AMPTP and redeliver only a slightly less lousy contract to its members. It's simply in the smaller union's nature to do that given its inferiority complex. However if the AFTRA pact is ratified, then SAG leadership will have been seen as squandering time and energy on a losing cause
But all this importance bestowed on AFTRA is absurd. The union is responsible only for three scripted network primetime series, one of which has been cancelled. The union should pick up a few more scripted network pilots by September. But its business in relation to SAG's is like a chihuahua pestering a mastiff. SAG, however, is worried about AFTRA's growing control over scripted cable shows and wants to "draw a line in the sand" on that issue. But I say this is not the proper time or place to deal with that now. Let the two unions stage a cage match after Hollywood gets back to work.
Finding itself SAG's target gave AFTRA more credit than it deserved. And so it emboldened AFTRA leadership to nip at SAG's heels. AFTRA president Roberta Reardon came up with a pitiful excuse to justify what was clearly a predetermined decision not to bargain alongside SAG. Instead, AFTRA truly made a deal with the devil in order to do the AMPTP's bidding. AFTRA relentlessly villified the bigger actors guild's current leadership which continues even now. Unfortunately, SAG bit back -- and the result has been spin and propaganda from both sides that is unsavory and unnecessary.
AFTRA also added insult to injury by starting this terrible bloodsport of pitting Big Actor vs Big Actor even though none of these AMPTP pacts affect any of these superstars. Not only have most not worked under AFTRA's contract for eons, but they have top agents who negotiate their individual deals. But AFTRA nonetheless was the first to officially email members and media a graphic of Sally Field, James Cromwell et al supporting ratification. Yes, AFTRA played the emotion card by spotlighting Sally Field, the woman who won an Oscar for her portrayal of union organizer Norma Rae. (But, interestingly, the email sent to members announcng her support was sent to "Everyone (Minus LA)". Hmm.
Guild contracts are all about strength in numbers, the power of collective bargaining, and looking out for the little guys. In entertainment, they're about protecting residuals which allow creatives to lead middle-class lives. They're not about Tom Hanks, Jack Nicholson or George Clooney. Do these A-listers have the right to express an opinion? Of course. Do their names carry weight? Sure. Are they relevant to this discussion? Hardly. I'd so much rather see all the superstars collectively call the moguls and put pressure on the AMPTP to deal seriously with SAG. (I'll have more about the SAG vs AFTRA Battle Of The Superstars in Part III posting on Saturday. There's so much that hasn't been reported...)
It was bad enough when the DGA and WGA were pitted against each other by the AMPTP. But now the Hollywood CEOs have found a new scapegoat for the de facto strike/lockout stalling Hollywood, and it's SAG. It's true that SAG has signed more than 350 guaranteed completion contracts with independent producers of films, the top 50 or so of which boast budgets between $14 million and $40 million dollars and represent in total hundreds of millions of dollars. But pro-AMPTP factions are out and about in Hollywood claiming that SAG has shut down the town. I don't know how that's possible. The Hollywood CEOs own the means of production and so only they have the power to stop principal photography on big studio films based on their own "fear" of a looming actors strike. But there is no evidence that the guild is contemplating such a labor action either in the near or distant future. So that fear is either irrational or manipulative.
As for the negotiations between SAG and the AMPTP, they are at a complete standstill. SAG national executive director Doug Allen recently broke his media blackout to make clear that it's not SAG who has been stalling. For instance, few people know that, when talks were resumed between the two sides after the May hiatus, the AMPTP refused to even offer the big actors guild either the WGA deal or the AFTRA deal. Instead, the Big Media cartel forced SAG to negotiate up from ground zero for weeks on end so that only as of today is the AFTRA deal even on the table. How is that fair pattern bargaining? Yet the moguls demand that SAG settle for the contract terms accepted by every other guild, especially on New Media. That's where the writers chose to draw their line in
EXCLUSIVE: The Screen Actors Guild is furious over Variety's erroneous report tonight that the guild "may agree to the majors' request to send out their final offer to the 120,000 guild members at the end of July." I'm told by one insider, "It's bullshit, especially the headline." That started out "SAG to send offer to members” until it was changed after complaints to the equally misleading “SAG may send offer to it’s members”. Said another source, "Absolutely not true at this time. 
Irresponsible reporting." The article also makes false assertions that SAG has stalled the negotiations -- ridiculous since it's now the AMPTP's turn to respond to SAG's counter-offer. This is yet another example of the trade writer Dave McNary making up a story about the guild negotiations that has no basis in reality, just like he did 
Oops. The AMPTP should have first checked with its bosses in Big Media before making that threat to SAG leadership to lower the employer offer on the table because of the dire outlook in this "deteriorating economy" for Hollywood movies and television. As it happened a lot of the infotainment CEOs were out of town at the annual Allen & Co. media conference. 
And they were making statements that were a lot more optimistic than the ones coming out of AMPTP headquarters. It's yet another case of the moguls talking out of both sides of their mouth -- by claiming strong results to Wall Street and pleading poverty to Hollywood guilds. (Remember, this telling YouTube 
Today, SAG issued the below statement denying media reports (not 
while the Hollywood CEOs continue their de facto lockout by refusing to return to normal production even though SAG has said it has no plans for a strike authoritzation vote. Meanwhile, it came out today that the AMPTP threatened SAG at the end of yesterday's session. I would have reported this, but the Big Media cartel's negotiating group admitted saw fit to distribute transcripts of exec VP Carol Lombardini's closing remarks to only what it considered friendly media outlets -- the trades have it 
UPDATE: *After getting hammered over this news blackout attempt against me, the AMPTP tonight apologized "because your site is a central hub for negotiation news". Once again, this shows what a rogue group the AMPTP has become and how the Hollywood CEOs need to tighten their leash on it and get back to being personally involved in the negotiations themselves.*
I have dutifully posted every AMPTP statement about the SAG negotiations which the Big Media clique has sent me. Tonight, I emailed all the moguls and their corporate flacks to complain about this gross manipulation of information about Hollywood labor negotiations. This AMPTP news blackout against me never happened even through the bitter WGA strike. But the coverage of the SAG-AMPTP bargaining has been even more slanted towards the AMPTP than during the WGA strike by these media dependent on studio and network advertising. Today's trade headlines, for instance, accused SAG of rejecting the AMPTP's offer when in fact SAG delivered a full counter-proposal. Another story today in Variety accused SAG of stalling the talks when in fact it is the AMPTP's turn now to respond to SAG's offer.
UPDATE: Here is the definitive answer to whether there is now a de facto strike or a de facto lockout in Hollywood. I've repeatedly opined it's nonsensical to think there's been a de facto strike when it's the Hollywood CEOs who control the movie production spigot and who've made the decision not to let films go forward even though SAG has said publicly it has no plans to even ask its membership for a strike authorization vote (step one before a strike is even contemplated). And let me also make it clear here and now that the moguls have told me the production stoppage has nothing to do with completion bonds and insurance. As one mogul clarified in response to my question about this: "Most studio movies are not bonded -- those are indie films. 
The 26th annual Allen & Co investor conference for monied moguls in Sun Valley, Idaho, hosted by Herbert Allen Jr really kept an unprecedented lid on the identities of the speakers and panelists this year. No doubt that was because of security reasons since I've found out that Jordan's King Abdullah II will speak to the confab. As for Hollywood, Jeff Katzenberg of DreamWorks Animation and Intel's Paul Otellini will make a joint presentation inside the Opera House (so expect a sophisticated dog-and-pony show about the much heralded 4D technology...). Bill Gates, Warren Buffett, Amazon's Jeff Bezos, round out the list of presenters. There also are several panels (see below). 
Meanwhile, the Screen Actors Guild placed a full-page ad to run Wednesday in the Ketchum-based Idaho Mountain Express newspaper (see below) to send a message from SAG's’s national negotiating committee to the entertainment industry leaders attending Camp Allen. SAG prez Alan Rosenberg explained why in a statement: "This media conference is the place where significant deals get made. We wanted to remind the entertainment media leaders in attendance that there is another important deal to be made. Actors are the creative heart of entertainment business, and our Screen Actors Guild members want to partner with our industry to invest in and share the rewards of our mutual digital future. Let’s keep talking and let’s make a fair deal.” Of course, the ad may also be seen by all the Wall Street investors and bigwigs attending the conference. (See my previous about past Camp Allens 
I've learned that SAG has just hired Sitrick and Company, the big strategic communications firm, to help with media relations for its AMPTP negotiations. Whereas AFTRA has had the small strategic communications firm 42West working for it for months and months. So, depending on your POV, the screen actors guild either saved a bundle of dough or should have spent a bundle of dough much earlier. That said, both PR firms are located in Los Angeles. And, like SAG and AFTRA, they have a history with one other. 42West's Allan Mayer worked for Sitrick and Company for 9 years, five of them as a partner. 
Sitrick's firm has long specialized in worldwide crisis PR, but Mayer became tired of the oops-we've-got-to-quickly-clean-up-this-mess stuff that sends major moolah Sitrick's way. It was an amicable parting: though Sitrick wasn't thrilled at losing Mayer, the boss did let Allan out of his contract in October 2006. And then Mayer started the LA-based strategic communications outpost of NYC showbiz flackery 42West founded by Leslee Dart. Sitrick then went on a hiring binge, and now a lot of ex-journalists work on his showbiz-related accounts. Though Sitrick and Company has a much bigger strategic communications business, 42West is an entertainment powerhouse. This'll be the Olympics of union PR games!
PART I: SAG/AFTRA/AMPTP Overview
The actors are divided to the point of distraction. The writers went after the AMPTP and the Big Media behemoths. The actors are going after each other. The agents and moguls backchannelled negotiations with the WGA. Hardly any backchannelling is going on right now between the moguls and SAG, while the agents are sitting on their hands. All the moguls kept close tabs on pre- and post-strike talks with the writers. Now some CEOs are so disengaged they're not bothering to read their labor lawyers' memos, much less to demand updates. The writers strike crippled television while movies went virtually unscathed. But the de facto strike or de facto lockout, depending on your POV, has seemingly halted moviemaking while television production continues mostly uninterrupted.The result is that Hollywood has to rewire, reboot and rethink everything. In this case, past doesn't have to be prologue. There doesn't have to be a strike. In fact, I can definitely tell you that SAG has "never suggested that a strike was an objective or essential," I'm told by an insider. "Yes, it is an option. But SAG leadership has not been the ones threatening it or sabre-rattling." And another insider puts it even more forcefully: "Not only is there no strike plan, there is no strike authorization, and there is no requirement that SAG has to go on strike once the contract expires on June 30th. It's not uncommon in labor disputes for union members to agree to extend the contract or to remain working under the existing terms of the previous contract while negotiations continue."
The Screen Actors Guild released the following statement Sunday from national president Alan Rosenberg confirming it's not in strike mode: “We have taken no steps to initiate a strike authorization vote by the members of Screen Actors Guild. Any talk about a strike or a management lockout at this point is simply a distraction. The Screen Actors Guild national negotiating committee is coming to the bargaining table every day in good faith to negotiate a fair contract for actors.”
Yes, there's a countdown to June 30th when SAG's contract with the AMPTP expires at midnight. What happens then? In all likelihood, the two sides will continue bargaining. (After all, the AMPTP is on record saying that the only reason it left the negotiations with the WGA after the writers' contract expired is because the guild called an immediate strike.)
Will AFTRA members ratify the new contract with the AMPTP? Two weeks ago, I would have said definitely. Last week, probably. And this week, I really don't know. All anyone is operating on is anecdotes and tea leaves. But every day that passes before that announcement is made, AFTRA gets more 
It was bad enough when the DGA and WGA were pitted against each other by the AMPTP. But now the Hollywood CEOs have found a new scapegoat for the de facto strike/lockout stalling Hollywood, and it's SAG. It's true that SAG has signed more than 350 guaranteed completion contracts with independent producers of films, the top 50 or so of which boast budgets between $14 million and $40 million dollars and represent in total hundreds of millions of dollars. But pro-AMPTP factions are out and about in Hollywood claiming that SAG has shut down the town. I don't know how that's possible. The Hollywood CEOs own the means of production and so only they have the power to stop principal photography on big studio films based on their own "fear" of a looming actors strike. But there is no evidence that the guild is contemplating such a labor action either in the near or distant future. So that fear is either irrational or manipulative.
As for the negotiations between SAG and the AMPTP, they are at a complete standstill. SAG national executive director Doug Allen recently broke his media blackout to make clear that it's not SAG who has been stalling. For instance, few people know that, when talks were resumed between the two sides after the May hiatus, the AMPTP refused to even offer the big actors guild either the WGA deal or the AFTRA deal. Instead, the Big Media cartel forced SAG to negotiate up from ground zero for weeks on end so that only as of today is the AFTRA deal even on the table. How is that fair pattern bargaining? Yet the moguls demand that SAG settle for the contract terms accepted by every other guild, especially on New Media. 
That's where the writers chose to draw their line in