Dear Colleague,
The initial two-week bargaining period agreed to by your Guild and the AMPTP concludes at the end of the day today. We do not yet have a deal. We will continue to bargain in good faith to make such a deal. But, at this point, we want to let you know where we stand.
We began the negotiations with two truths about the current state of the business at the heart of our proposals:
First, that these have been very profitable years for the companies. This past year they earned $51 billion in profits, a record.
Second, that the economic position of writers has declined sharply in the last five or so years. Screenwriters have been struggling for a long time. They are now joined by television writers, for whom short seasons are at the core of the problem. In the last two years alone, the average salary of TV writer-producers fell by 23%. Those declines have not been offset by compensation in other areas. In Basic Cable and new media, our script fees and residual formulas continue to trail far behind those in broadcast even though these new platforms are every bit as profitable as the old model.
In light of all this, we sought to tackle a number of issues that directly affect the livelihoods of all writers.
We asked for modest gains for screenwriters, most particularly a guaranteed second-step for writers earning below a certain compensation level.
We asked for a rational policy on family leave.
We sought to address chronically low pay for Comedy Variety writers.
We asked for 3% increases in minimums and increases in the residual formula for High Budget SVOD programs commensurate with industry standards.
We made a comprehensive proposal to deal with the pernicious effects of short seasons. This included a limit on the amortization of episodic fees to two weeks, a proposal that sought to replicate the standard that had been accepted in the business for decades. It addressed, as well, the continued problems with Options and Exclusivity. And it sought to address the MBAs outdated schedule of weekly minimums, which no longer adequately compensates writers for short terms of work.
Finally, we sought to address script fee issues in basic cable and streaming but also in the case of Staff Writers. Unconscionably, our lowest paid members are now often held at the staff level for multiple seasons, with no compensation for the scripts they write.
What was the companies response to these proposals?
No, in virtually every case.
Nothing for screenwriters. Nothing for Staff Writers. Nothing on diversity.
On Family Leave they rejected our proposal and simply pledged to obey all applicable State and Fe deral laws as if breaking the law were ever an option.
On short seasons, they offered a counter-proposal that addressed the issue in name only thus helping no one.
They have yet to offer anything on minimums, or on HBSVOD.
They have made some small moves on Options & Exclusivity some small moves for Comedy Variety writers in Pay TV. But that is all.
On the last day of these two weeks, the companies proposal has barely a single hard-dollar gain for writers.
$51 billion in profits and barely a penny for those of us who make the product that makes the companies rich. But thats not all.
In response to our proposal to protect our Pension and Health Plans, this has been their answer:
Nothing on Pension.
And on our Health Plan, two big rollbacks.
First, they have demanded that we make cuts to the plan $10 million in the first year alone. In r eturn, they will allow us to fund the plan with money diverted from our own salaries.
More, theyve demanded the adoption of a draconian measure in which any future shortfalls to the plan would be made up by automatic cuts in benefits and never by increases in employer contributions.
This, too, is unacceptable. The package, taken as a whole, is unacceptable and we would be derelict in our duty if we accepted it.
Therefore, your Negotiating Committee has voted unanimously to recommend that the WGAW Board of Directors and WGAE Council conduct a strike authorization vote by the membership.
Once again, we are committed to continue negotiating with the companies in good faith to get you the deal we all deserve. We will continue to update you as things progress.
Respectfully,
The Negotiating Committee Members of the WGA West and WGA East
Chip Johannessen, Co-Chair
Chris Keyser, Co-Chair
Billy Ray, Co-Chair
Alfredo Barrios, Jr.
Adam Brooks
Zoanne Clack
Marjorie David
Kate Erickson
Jonathan Fernandez
Travon Free
Howard Michael Gould
Susannah Grant
Erich Hoeber
Richard Keith
Warren Leight
Alison McDonald
Luvh Rakhe
Shawn Ryan
Stephen Schiff
David Shore
Meredith Stiehm
Patric M. Verrone
Eric Wallace
Beau Willimon
Nicole Yorkin
Howard A. Rodman, WGAW President, ex-officio
Michael Winship, WGAE President, ex-officio
David A. Goodman, WGAW Vice President, ex-officio
Jeremy Pikser, WGAE Vice President, ex-officio
Aaron Mendelsohn, WGAW Secretary-Treasurer, ex-officio
Bob Schneider, WGAE Secretary-Treasurer, ex-officio
