Threat of Strike Looms Large

Hollywood remains in a state of flux as it waits to see whether or not writers will trade in their pens in favor of picket signs. The contract between the WGA and the AMPTP expired at midnight last night with little fanfare other than continued antagonistic rhetoric between the two negotiating parties.

Discussions yesterday were again fruitless, and mired in the contentious atmosphere that has been a constant since bargaining commenced. The day began with the WGA presenting a comprehensive proposal to the AMPTP and ended with the AMPTP refusing to address the proposal.The WGA offer included concessions in some key areas, and the outright removal of nine propositions.

One of the big bones of this year’s negotiation has to do with how much writers make on DVD sales. The AMPTP has been trying to get the WGA to agree to the same “hated” terms regarding internet downloads.

Yesterday, the AMPTP responded to the WGA proposal after six hours by saying they wouldn’t respond to anything until the WGA agreed to accept their demands regarding downloads. The move effectively ended pre-expiration talks.

The DVD formula is turning into one of the hottest disputes of the negotiations, with AMPTP president Nick Counter asserting that unless the WGA backs down in this area, discussions will be at an impasse.

In this area, the WGA is currently working under conditions agreed to in 1985, when the DVD market was still a fledgling endeavor. Home video residuals are paid based on only 20% of wholesale revenues, which means that writers make an average of 4 cents for every DVD sold.

In an official statement, WGA presidents Patric M. Verrone and Michael Winship stated that “After three and a half months of bargaining, the AMPTP still has not responded to a single one of our important proposals. Every issue that matters to writers, including Internet reuse, original writing for new media, DVDs, and jurisdiction, has been ignored. This is completely unacceptable.”

The WGA has a members only meeting scheduled for 7pm tonight at the Convention Center, at which the negotiating committee will “make their recommendation how to proceed.”

If you’re looking for an indication as to which way the wind will blow, you should know that WGA members are being asked to take all their personal items with them when they leave work today.

photo by judeanpeoplesfront via Flickr