Writing on the wall for work stoppage

Industry, writers in 11th hour contract talks

In this story: Thousands idled, billions lost Issues: respect, cash Hollywood worried RELATED STORIES, SITES

By Jamie Allen
CNN

(CNN) -- And you thought the hype for "Pearl Harbor" would be so loud by May 1 you wouldn't be able to hear yourself think.

VIDEO CNN's Lauren Hunter reports on the preparations in Hollywood for an impending writers strike Play video (QuickTime, Real or Windows Media)     SIDEBAR Soaps, variety shows could be first victims     INTERACTIVE What will happen to your show?     ALSO Sherri Sylvester: Strike talks long, time short   The negotiations at a glance: Players: Writers Guild of America (WGA), Alliance of Motion Picture and Television Producers (AMPTP) Among the issues: Residual payments for overseas broadcasts, domestic reruns Money from videocassettes and DVDs Raising minimum pay for writers Costs of a prolonged strike: Loss of $6.9 billion to the Los Angeles economy and 81,900 jobs, according to a study commissioned by Los Angeles Mayor Richard Riordan Delay in production for fall television season Contract expires: 12:01 a.m. PDT, Wednesday, May 2 Source: Wire services

Instead, with summer's movie blockbuster season right around the corner, there's only one item for discussion in the hills of Hollywood on Tuesday: the pending writers strike.

The contract for the Writers Guild of America expires at 12:01 a.m. PDT Wednesday. Despite negotiations that lasted into the early hours of Tuesday, and more planned throughout the day, writers still haven't bridged a $100 million gap in salary demands with the Alliance of Motion Picture & Television Producers.

Neither side is talking on the record -- both have imposed a news blackout -- but industry publications like Daily Variety and The Hollywood Reporter have gleaned a few findings.

Calling Tuesday "ground zero" in the labor dispute, Variety reports that the guild has told its members that they should expect two "crucial developments" no later than Tuesday night: a "final offer" from the companies and a response from the union negotiating committee.

"Sometime in the next two days, the committee will decide on its recommendation based on the terms of the companies' final offer," the leaders said in a message late Sunday. "We are working hard in the hope we will not have to ask you to make the decision to authorize a work stoppage."

Thousands idled, billions lost

In Los Angeles, where an estimated 185,000 people work directly in the film and TV industry (and that excludes related services, like catering), a strike could be have far-reaching consequences, says Mayor Richard Riordan.

On Monday, Riordan repeated statistics from a city-funded study that found a strike could inflict a $6.9 billion wound to the local economy, including the loss of 81,900 jobs and a rise in unemployment from 4.8 percent to 6.9 percent.

Thousands who provide production support, including caterers, make-up artists, and prop houses could be affected by a strike

"If film and television producers do not reach an agreement with the writers, it (Los Angeles) could take a U-turn back to the days of high unemployment and economic recession," said Riordan.

He tried to remain upbeat. "I'm extremely optimistic that there will be no strike," Riordan said.

Issues: respect, cash

The labor dispute has as much to do with respect as it does better salaries, according to some observers. In Hollywood, writers have long been seen as low man (or woman) on the totem pole compared to actors, directors, and producers.

The contested issues are how much studios owe writers when films or TV shows are broadcast overseas or rerun domestically; increased residuals from videocassettes and DVDs; and compensation for material appearing on the Internet.

TV networks and movie studios have attempted to stockpile material in the event of a strike

The issue of residuals for "movies on demand" has become a potential problem due to disagreements over classifying the format, Variety speculates.

Robert Eisele, the executive producer and writer on Showtime's "Resurrection Boulevard," says he's willing to sacrifice to win better pay.

"Although I respect a lot of executives, they would be nothing, do nothing, have nothing were it not for us," says Eisele, a veteran of the '88 writers' strike who's been with the WGA since 1980.

Hollywood worried

A strike is not guaranteed, even if the contract expires. Guild leaders have yet to call an official strike vote of members, meaning they are willing to extend talks if they're going well.

"Until and unless a strike is authorized and actually called, you should continue to write if you are employed," the leaders said in a statement.

The writers' contract is not the only concern looming over the entertainment industry. The Screen Actors Guild has a June 30 contract expiration date.

Though rhetoric is heated, industry observers like Martin Grove of The Hollywood Reporter says the show must -- and really wants to -- go on.

"Bottom line: Hollywood is worried," says Grove. "Nobody wants to see this really healthy industry ... just put flat on its back."

Writers, actors unions gird for strike
April 12, 2001

Writers Guild of America
Alliance of Motion Picture and Television Producers
Screen Actors Guild

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