UPDATE: I'm hearing that the agents are going to intervene with the moguls on the WGA's behalf...
How ironic that this news hits Hollywood one day before the Screen Actors Guild has its long-awaited formal meeting with the Hollywood CEOs' negotiating reps, those AMPTP asswipes, and on the same day that the AMPTP and IATSE announced they're reached a tentative contract agreement. “In light of the fact that writers are not being paid for New Media reuse, it’s unconscionable that the AMPTP proclaims on its website, ‘By working under an expired contract, SAG members are not receiving the New Media residuals that other Guild members are already collecting,’ ” said WGAW President Patric Verrone today. Yeah, this is corrupt studio accounting brought to a whole new level of fraudulence.
If ever there were a time for showbiz guilds to stand together in solidarity, it's now. I'm talking SAG and the DGA as well as the low-cost toadies AFTRA and IATSE. And I'm talking about a boycott of the Golden Globes and Academy Awards. (The Guilds have their own awards nights anyway, right? I bet SAG could charge up the wazoo for the broadcast rights to its glitterfest now...) Bad enough that SAG has to keep pushing for its $60 million in overdue force majeure payments from the majors, since it's one of the few bargaining chips which the guild has to play with the AMPTP short of a strike authorization. The Hollywood CEOs want those debts forgiven and the whole force majeure payment issue removed from future SAG contracts. Then there's the issue of the moguls not making timely payments on residuals of traditional entertainment product to writers, directors and actors.
Just how many ways is the Big Media cartel screwing the guilds right now anyway? Hard not to interpret this as a direct assault on the Hollywood unions in the macro sense. This shows exactly what shits are the studio and network CEOs and the labor lawyers leading them around by the nose no matter if the economy is good or bad -- because this nonpayment started waaaaaaaaaay before the stock market crashed. They should be ashamed of themselves. But that would require them to have consciences.
Today, the Writers Guild of America, West, confirmed what they'd warned about a few weeks ago: that the media conglomerates of the Association of Motion Picture and Television Producers – the AMPTP – have failed to comply with the contract negotiated to end the Guild’s 100-day strike by not paying residuals for writers’ work that is reused on New Media. These payments were the key issue of the WGA strike so the WGAW said today it's starting "an aggressive contract enforcement program – including legal action – to ensure that the AMPTP companies make good on their obligations". To that end, the WGAW filed for arbitration today against the AMPTP over residuals for programs sold as electronic downloads (aka ESTs, or Electronic Sell-Through) involving the sale of video content via the Internet which allows the purchaser to keep a copy of a program permanently on a computer hard drive or other device. In addition to taking legal action, the WGAW is undertaking a campaign of extensive member outreach and education on contract enforcement issues so that writers can help monitor the progress of enforcing the 2008 Minimum Basic Agreement.
“Our agreement with the companies on material released to EST covers feature films produced after July 1, 1971, and television programs produced after 1977,” said John Bowman, chair of the 2007 WGA Negotiating Committee. “The companies have reneged on this agreement and are taking the position that only programs produced after February 13, 2008 are covered by the new provision. This may be their deal with the DGA, but that was never our agreement. Every proposal we made during negotiations made clear our position that library product was covered, and the AMPTP never objected to that position. The Guild will not allow this to stand.”
The Guild said today it's also preparing to file for arbitration against the AMPTP companies for failing to pay residuals due for the streaming of television shows on the Internet. “Our tracking has shown that episodes are staying on websites longer than the 17-day initial window called for in the contract. This triggers the payment of a residual, but so far we’ve seen nothing,” said David Young, the WGAW's executive director who also helped negotiate the new contract. “Given the reports by the conglomerates of the growth of the number of shows being streamed and increases in new media revenues, this is an unacceptable situation.”
Said WGAW President Patric Verrone: “The companies know what is being streamed, and they regularly announce how successful they are in generating online advertising revenue, so there’s no reason for them not to honor the agreement they made with us.”
WGA Says Moguls Not Living Up To New Contract: Angrily Calls It "Appalling"
The studios are shooting themselves in the foot long term with these sorts of shenanigans.
Money is tight, investment capital is even tighter, who will want to invest in a business that is willing to face expensive labour actions and litigations because they don’t feel like paying their bills? (Especially when the amount will most likely equal the amount given to a typical CEO for their Christmas bonus)
The moguls are relying too heavily on their connections in Washington to protect them from any legal entanglements. All it takes is one overambitious federal prosecutor and the unions getting together to outweigh them in political “influence” and some moguls could end up doing perp walks in front of the courthouse, and losing their jobs. I’ve taken a look at White Collar prosecutions, and they don’t even need an actual crime to get indictments, embarrassments, important people forced out of their jobs, and even the occasional conviction.
All the people running AIG right now, were put there because Eliot “Pass The Hooker” Spitzer drove out the previous management, and he didn’t even have a case. That sure ended well for everyone, didn’t it?
Of course no one in a position of power in Hollywood seems to be thinking beyond their next bonus check.
Comment by Furious D — November 19, 2008 @ 6:33 pm
Though this is generally bad news, it warms me to the core that WGA is standing up and saying “just hang on a goddam minute”. They’ve been patient. They’ve been forgiving. They’ve been ripped off.
On the other hand, the AMPTP is clearly showing what greedy, unscrupulous bastards they are - it’s finally going public. Which is good for SAG and all we’ve stood for over these past months, as some of the other guilds are now facing this reality along with us.
Now does everyone understand why SAG won’t take things off the negotiation table, so that the AMPTP can screw us in the future? They don’t even pay what they’ve agreed to in a contract, much less what they promise they’ll adhere to in the future.
Though I haven’t seen their contract, I hope that IATSE is finally getting standard wages (they’ve been working sub-standard for years). And if they aren’t getting what they deserve, I hope they vote the contract down.
“If ever there were a time for showbiz guilds to stand together in solidarity, it’s now.” Hear, hear, Nikki. This shit’s gotta stop.
Comment by Ace — November 19, 2008 @ 6:33 pm
Nikki,
You do realize that SAG kills a lot of independent productions for not adhering to residual escrow rules?
Half of their tactics are unconstitutional and borderline extortion. I can list 20 films that were shut down within the past 24 months due to not being able to afford to abide by SAG rules.
There needs to be an overhaul of the entire system, and it should actually be starting with S.A.G.
-RnsW
Comment by RobertNotSoWise — November 19, 2008 @ 6:46 pm
I have been a supporter of the AMPTP in this, and have argued on DHD for SAG to shut up and sign a deal… But this is absolutely despicable on the part of the moguls.
It’s one thing to say someone should sign a deal and except terms. It’s a totally different thing to not even follow the terms of your own deal!
This is pathetic. I still think SAG should settle, but what’s the point if the bigwigs can just not follow the terms of the new agreement.
F*cking pathetic.
Comment by Sleemans — November 19, 2008 @ 6:54 pm
I wish (though I don’t know they can) go after big media for fraud, which is exactly what this is, and not just breach of contract via arbitration. Without putting some disincentive into getting caught (i.e., punitive damages), the continual fraud and “Hollywood accounting” will continue to get even more out of control.
A vast majority of the time that the guilds are crooked out of payments they are owed, the only result is a -possibility- of paying what they owed in the first place. If you’re a sleazeball, and the -worst- case scenario is that you only have to pay what you get caught stealing, there’s every rational money-grubbing incentive in the world to fuck over everybody on every single avenue then -maybe- have to pay -some- of what you get -caught- stealing.
Damn, man.
First, because WGA leadership are honorable and (wrongly) believe others are too, they get snookered into believing the AMPTP behind closed doors that if WGA takes DVD residuals off the table, that gesture will be met by equal concessions by the AMPTP. Once WGA grants that concession, however, they’re stiffed when AMPTP claim proves to be a total lie.
Then, WGA has to strike for -something- that resembles “old media” profit sharing with the new media, then they get robbed of all monies on that. !@#$#@$?
Then the AMPTP has the gall to tell SAG “look at all the residuals you’re missing out on that we’re paying” when it’s total bullshit?
Fuck.
Godspeed to Patric and all writers in getting not only what they would have been owed had big media been honest, but extra compensation to put in some disincentive for the continued commission of rampant fraud on several fronts that goes from “extremely bad” to “even worse” every single f’ing year.
I hope this despicable behavior helps more peops like Sleemans see big media for what they really are. Given the rampant sleaze on so many fronts, I don’t see why the AMPTP simply doesn’t agree to whatever SAG wants, plus a bag of chips. Hell, based on past experience, it’s not really like they plan on paying in full on time anyway (if they pay any of the owed money at all) … because there’s zero financial incentive not to.
Comment by C. Sterling Wolfe, Esq. — November 19, 2008 @ 8:49 pm
I’m a working actor but my second job has become chasing after money I’ve earned from studios that just won’t freakin’ pay up. My agency and the union do all they can, but sometimes production companies make an art out of delaying payment, or in the case of commercials, just pretending the spot didn’t air as many times as it did (Class A) to get out of paying at all. Last one I caught cheating missed almost 100 Class A payments!!
Commercial actors should hire a monitoring company on EVERY spot, compare it to the list of Class A air dates on your checks, and confront the bastards. You’ll be shocked to find how many thousands are being stolen from you almost every time. But they’ll smile say “Oops, it was a clerical error.”
And don’t forget to log on to the SAG P&H website to find out if any production companies haven’t paid P&H on your work which might end up making you ineligible for health insurance or pension credits!
I almost always have a claim running with SAG now (the situation has gotten much worse in the last two years) and don’t even get me started about how late residuals are being paid these days - up to a year after airing - even from a studio like Warner Brothers. If this kind of lack of attention to paying workers happened in any other industry the owners of the companies would all be in JAIL. It can’t go on like this for much longer.
Comment by Fraud City — November 20, 2008 @ 1:52 am
Dear RnsW,
What SAG rules are you talking about?
Do you know what a SAG “Ultra low-Budget” contract pays actors??? In my view, SAG has bent too far backwards already to make it possible for future filmmakers to make SAG films and now they have crippled themselves.
Anyone just out of film school can get some SAG papers executed for an “Ultra Low” budget contract which pays actors $100 a day which is seven times below the usual daily scale usage of $759 +10%. (still a ridiculously low number)
So you think paying an actor $100 a day and no chance on residuals unless there is actual distribution (rare indeed) is abusive and unfair to the producers?
I think you have more respect for red meat at the deli counter than you do for actors.
Stay classy RnsW
Comment by Agent Provocateur — November 20, 2008 @ 6:20 am
Surprise, surprise. The suits are thieves and liars. Wouldn’t know it from UFS or all the appeasers on the SAG regional and NY boards, let alone all the AMPTP butt-boys and gals at AFTRA. Or, those clueless fools at Sagwatch.net.
What about “don’t trust the suits” don’t these people understand? Well, now, here it is (duh) in writing from the president of the WGA. Wonder when that hard-nosed negotiator Michael Apted over at the DGA will fess up and say “I blew it. Don’t hold your breath.
AFTRA? Forget it. They’re so far up the AMPTP’s ass you need to send a microphone embedded in a colonoscopy tube to hear what they are saying.
Hey Sagwatch? Count the days. You’re about to be standing in the light of day instead of the shadows.
Comment by TL — November 20, 2008 @ 8:52 am
Regarding Ultra Low Budgets Films and SAG actors. I’ve been working at the guild signing the producers to ULB Agreements for a few months now. The paperwork and rules are not that onerous to someone who is prepared and organized. What I’m finding is that half the “producers” making these films are not prepared, not organized and more often then not should not be making films at all. Half of my projects have producers who end up not paying the actors, can’t calculate payroll correctly when they do, and violate not only SAG rules but state and federal laws during production as well. That’s why there are rules and laws in place. ULB producers that know what they are doing seem to have no problems getting their projects done with SAG actors and seem very happy to have the opportunity to use SAG actors at greatly reduced rates for their projects.
Comment by sagger — November 20, 2008 @ 9:37 am
Sagger … you are an idiot on so many levels.
Your low budget agreements and P&H requirements are a shakedown.
Low budget filmmakers are simply that … filmmakers. They are making low budget because they cannot make mainstream commercial yet. This is their minor leagues.
They are the film equivalent of small business owners, Like government in general, SAG punishes these small business owners by creating complex requirements and ongoing administration that they are not setup to handle.
If SAG was smart, they would waive minimums and residuals on anything under $500k, waive residuals on anything under $3M and above $500k, reduce residuals (down to one lump up front residual payment if not assumed by a domestic distributor) on films between $3M-$5M and get rid of all those silly zone requirements and travel requirements on sub $10M films. This is who is taking the beating, not the studios.
You want to save this industry, then start by helping those small business owners aka low budget filmmakers.
Comment by James Bondcompany — November 20, 2008 @ 5:54 pm
While all these claims are justified, you just cannot shut down Hollywood right now. Let them have their fun…. for now.
If you strike, the bigs will watch you burn. The layoffs will continue. The linkage to all the guilds and all the support people will suffer. I still have IA colleagues that lost their jobs because of this last Wriers strike. They were never out of work before. They are now. This is the right cause but the wrong time to fight for it!!!!
What you can do however is plan for the next go-around (3 years?) and really prepare with solidarity…. It’s absolutely do-able provided the guilds have anyone with true leadership ability.
An ill-timed strike with zero labor-union support right now is suicide.
Rosenberg and co. are hell-bent.
And so it goes. Time to save or take an equity loan… Wait, I can’t get one now!! Hmm…
Comment by JP — November 24, 2008 @ 11:14 am