Pens down

Since late last year, the Writers Guild of Amercia (WGA) has been on strike as part of a bargaining campaign for a new basic contract for film, television and radio writers. On the other side of the table is the Alliance of Motion Picture and Television Producers (AMPTP) which represents the interest of film and television producers including major industry players MGM, Sony, Disney, News Corporation and NBC to name a few.

What's it all about? The key areas of dispute have focused on the rate of 'residuals' writers earn. Residual payments are paid to writers when their work is re-broadcast on television, video or DVD or repurchased by another content provider. Due to the seasonal and intermittent nature of work in the industry, residuals provide some level of income security to writers during periods between projects.

Video: Why we strike - a short film produced by the WGA that clearly sets out the reasons behind the strike and what the writers are seeking to achieve. 

Union position: Currently writers receive 4 cents to the dollar of reportable gross profits from video/DVD sales. The WGA position calls for an increase to 6 cents. The other key demand is in relation to new media and the setting of a residual rate for content available for download, broadcast or on demand via the internet. The union is seeking a new media residual rate of 2.5% of distributable gross profits. Currently writers receive no residual income when their works appear online. AMPTP rejected the writers' claims, talks broke down and the strike began.

Strike action: WGA members authorised industrial action and the strike started on 5 November 2007 with 3000 union members and supporters establishing ongoing pickets at 14 targeted sites. Four days later WGA members, friends and supporters from other unions held a rally in Los Angeles that attracted 4,000 people. The support of transport unions and the Screen Actors Guild (SAG) ensured the picket lines have been maintained throughout the strike.

Boycott: In January a WGA boycott of the Golden Globes awards resulted in the cancellation of the live telecast, with winners announced by journalists during a replacement press conference. With SAG members refusing to cross any picket lines, writers have not ruled out targeting the Academy Awards scheduled for 24 February if the dispute remains unresolved.

Online strategies: In the virtual world, WGA members and supporters started a campaign through social-networking site Facebook, staging online protests, while real world activists have employed video-sharing site YouTube to spread their message and broadcast from the picket line.

New media: Internet residuals form the heart of this dispute and remain the major sticking point for both parties. In 1988 when the last strike occurred, the main issue was the residual rate for the then nascent home video market. At the time, AMPTP argued that the new market was unproven and involved significant manufacturing costs. The resulting 4 cent residual proved to be a poor deal as videos, then DVDs exploded in popularity while the costs involved in bringing the product to market dropped dramatically.

With the advent of broadband technology and the imminent convergence of  television and internet through digital broadcasting, writers are concerned about being shortchanged once more. As in 1988, AMPTP argued that the online market is unproven and currently 'worthless' in terms of revenue, despite the large amounts of paid advertising currently packaged with content. WGA's new media claim has the potential to set a powerful precedent for other entertainment industry players, which helps explain the support of the actor's union and the trenchant resistance of producers and studios.

Local impact: While the Writers Guild of Australia has pledged their support for the strike, one of the results of the protracted dispute has been an increase in Australian-made television production as broadcasters seek to replace affected US programs with local content. A spokesperson for the Media Entertainment and Arts Alliance (MEAA) claims this demonstrates the increased reliance of Australian broadcasters on US content at the expense of local production, a direct result of laws passed by the former Howard Government. MEAA also stated that Alliance members working in the US would not cross any WGA picket lines while the strike continues. In Australia, writers and their union negotiate with producers on a project by project basis.

Update: In an attempt to break AMPTP's united front, WGA negotiators have targeted production companies with some success by negotiating side deals allowing union members to return to work there. However on 25 January, AMPTP and WGA announced they would resume talks under the cover of a media blackout. While the pickets continue in the real world and online, sources close to the action suggest that the next two weeks could prove crucial to the resolution of the dispute.

How you can help: The striking writers have set up a website with information, videos, merchandise and ways you can help. Visit http://unitedhollywood.com/ and show your support.

 

More information

• Why we strike - a video produced by the WGA that clearly sets out the reasons behind the strike and what the writers are seeking to achieve. 
• NewsHour - a program from PBS examining the new media elements of the dispute

The lighter side

• Not The Daily Show - striking writers from Jon Stewart's top-rating show set up the desk on the picket line and take aim.