In case you haven't heard, negotiations have broken down again in the WGA/AMPTP talks…although frankly, from what we've heard, it doesn't sound like a lot of negotiating was actually going on even when the two sides were together and talking. (In case you're not up to speed, here's a report on the breakdown from the AMPTP side and here's one from the WGA side. Guess which one I think is more rational and represents good faith bargaining.)
What does it mean? Well, the first thing it means is no negotiating for a while. The AMPTP has demanded that the WGA drop six topics from the talks or there will be no more talks. As a complete outside observer, it seems unthinkable to me that the WGA would just drop these issues except as trade-offs for genuine concessions. But the AMPTP is not offering anything in exchange for dropping them except a resumption of talks that, so far, haven't been particularly fruitful.
So it sounds like this strike ain't gonna end until '08. The AMPTP posture is not one from which they can easily back down. They can't come back in next Tuesday and say, "Hey, remember that stuff we said on Friday about how we weren't resuming meetings until you dropped six issues? Well, forget it. That was just the liquor talking." It's going to take a couple weeks of sidebars and backchannel talks before the two sides — probably with a couple of outside parties doing shuttle diplomacy — arrive at some sort of understanding that will allow the dialogue to resume. The AMPTP may even try to plunge into an early deal with the Directors Guild, although the DGA may decide its against their own best interests to be used that way.
One thing to keep in mind if you read over the AMPTP's list of the six areas they will not discuss with the WGA: In them, you'll see some references to the Guild demanding to be paid more than the producers receive for something. Here's an example from their press release…
The WGA proposed a system of compensation for Internet programming that, when applied to the WGA and the other guilds, could result in producers paying more to the guilds from Internet programming than the producers actually receive in revenue from such Internet programming.
What that's all about is what they call Hollywood Accounting…ways of hiding the money from people who receive a share. Here's how it works. Let's say I have a movie studio called Klopman Pictures. Let's say you write a movie for Klopman Pictures and according to our deal, you're to receive 2% of the revenues that the producer receives. Then let's say the movie makes a zillion dollars.
You probably expect to receive 2% of a zillion but that's not how it works, Bunky. You see, the zillion is what Klopman Distributing — a separate company that I just happen to also own — collects. Then Klopman Distributing has to pay its expenses, which includes half a zillion dollars to me as a consultant. Then they deduct a 25% distribution fee. Then they lop off their FedEx expenses and the cost of the staff and what everyone spent on lunch, plus they have to pay rent (to the Klopman Realty Company) for the suite of offices that house Klopman Distributing…and by the time all these amounts are subtracted, what they pass on to Klopman Pictures (i.e., "the producer") is considerably diminished. I just did a rough calculation and I figure it's about $17.45. So you get your 2% of that amount. Don't spend it all in one place.
So when you read that the WGA is demanding "more than the producers receive for something," it's all about that kind of math. It means the WGA wants some sort of compensation that's not reducible to 2% of seventeen bucks. The tip-off is that phrase: "…what the producers actually receive." That's language you stick into a contract when you're preparing to argue that there's some money involved that you didn't "actually receive." In our hypothetical example, I'd be arguing that $17.45 is what the producer "actually received."
So that's what that's all about. Most of the other areas they're resisting are ones that would give the WGA more power. It's all very depressing but I think they're wrong if they think it's going to weaken the Guild.
I've been feeling guilty lately because with my trip and with various deadlines and disasters at home, I haven't been able to picket as often as I feel I should. Looks like I'm going to have ample opportunity.