October 1, 2008 by admin.

We got this letter via e-mail…

Dear SAG Brothers and Sisters,
 
Please forgive the length of this letter, but it is a necessary part of this Wake-Up Call!
Today, a very desperate Membership First is moving towards a strike authorization vote a week before the newly elected Unite for Strength Hollywood majority can convene and three weeks before the new national board may take up further discussion.

Acting on their own, and arguably overstepping their downstream authority in what ought to be the waning days of their Negotiating Committee majority, this lame duck group is again demonstrating its lack of skill and foresight. While the committee does have the constitutional right to proceed, it shows more of the same bad gamesmanship to which we have become accustomed and is tactically premature.

As many in Georgia know, I have plenty of experience in the realm of politics and the art of negotiation. To the point, I have never seen such brazen and amateurish behavior as that which has been demonstrated by Messer’s Rosenberg and Allen and their Kool-Aid Kids. Somehow, they have taken less than 10% of our membership’s rigged poll and given themselves the moral authority to make the impossible leap of logic to the following statement, which was contained in their letter to AMPTP on September 29, 2008.

Per Rosenberg and Allen, “We believe it is clear that our members would fail to ratify your [AMPTP’s] proposal of June 30, 2008.”

Of course, that is not clear at all due to the meager sampling, and a simple majority vote is still more easily obtained than a 75% strike vote.

I presume many of you did not respond to the recent SAG “referendum,” like me, because 1) it was strategically designed to give our leadership the desired result no matter the response, and 2) it was not a blind poll, which could easily be used against individuals, whether Big Brother admits it or not. Therefore, the exercise was worthless, regardless of the time and cost, and four months late in its execution. Timing, after all, is everything.

While it is quite true that each of the outstanding contract issues has its own merit and may be well overdue, taken within the larger context, these issues are not necessarily strike worthy, given history and current economic conditions.

Still, let’s examine the two scenarios available to us and attempt to find a win-win proposition.

A) Assume a strike authorization vote is taken…
If the vote passes, will SAG be able to shut Hollywood down? A total work stoppage is indeed the union’s most effective bargaining weapon. Believe me, you will be told at some point that a strike authorization vote does not mean there will be a strike. It is merely leverage. But, it can and will happen depending on the desperation of our union leadership. And a desperate leadership never wins. Unbridled passion and ego have no place in the negotiation process, something that has clearly been forgotten by our team.

Also consider that by giving out so many production waivers to date, the seriousness of a “work stoppage” is reduced in the near term. Even if SAG members were to go on strike and hold the line, AMPTP has an alternative with AFTRA contracts in place. We can forget reciprocal loyalty. We are no longer aligned with AFTRA in these particular negotiations, and AFTRA is now aligned with IATSE. IATSE will not honor the strike. They can’t by contract. Work will go on.

Plus, DGA and WGA will not be so eager to rally to our defense, even if they are sympathetic, because SAG is seeking more than they got. Yet another significant problem associated with going last in industry negotiations.

AMPTP is well aware of all of this.

SAG loses.

AMPTP wins.

If the vote fails, AMPTP will have the final authority to withdraw what is currently on the table and reduce its offer - again. Without the official threat of a work stoppage, SAG will not have any cards left in its poker hand.

SAG loses.

AMPTP wins.

B) Assume a contract ratification vote is taken…
If the vote passes, we will gain some cost of living rate increases, be on par with the rest of the industry in regards to the new digital domain, but we will lose all retroactive pay and P&H benefits to July 1, because the August 15 AMPTP deadline has long passed. At the very least, long-term industry production may resume and the current stalemate will be broken. But, we will not have achieved the entirety of our collective goals.

SAG loses.

AMPTP wins.

If the vote fails, the stalemate continues indefinitely. The producers and studios will remain in the envious position of pay and benefits based on an old scale, which is below AFTRA in some cases.

SAG loses.

AMPTP wins.

I cannot lightly stress that these are the only two scenarios available to us at this time. Not a bright horizon. Even with the change of majority leadership within SAG, AMPTP’s willingness to re-negotiate will not happen. There is no reason for them to change their strategy, because they have already won in every case. And don’t delude yourselves with thoughts that meaningful, private negotiations are ongoing or in process. They are not. You need only ask the people that hold all the cards.

What, then, shall we do with a contract that we would agree is not perfect? To use a Southern phrase, we “cut bait.” Essentially, we take the only option available, because we have no choice.

We rally to take the current contract offer before we lose millions more in P&H and pay increases. We live to fight another day. If we don’t, we will certainly receive a SAG missive explaining something along the line that “due to financial pressures beyond our control, your qualification thresholds for P&H, coverage and deductibles have risen…”

I suggested in June that we accept AMPTP’s final offer and negotiate a shorter two or two-and-a-half year contract so SAG may be first to the table next time. That would signal our overall displeasure with the AMPTP contract, keep goodwill within the industry, and put everyone on point for the future. However, that option was never explored, and now it is likely too late to matter. We simply have no trump cards.

To send the right signal to our membership and the industry in general, we must now remove the team of intransigent negotiators and leaders that have failed us to this point.

Despite “best intentions,” they and their acerbic rhetoric cannot be taken seriously in future negotiations and will be seen as impediments to progress. This proved to be a very effective strategy in Georgia State Legislature negotiations on the topic of incentives. We failed one year because of lack of teamwork and unprofessional conduct, then removed those at issue and easily won more sweeping changes the following year. Perhaps the most important lesson learned in those negotiations was to create win-win scenarios for everyone, even our enemies. Trust me, it works.

It is also recommended that AFTRA and SAG merge in the interim so that conflicts of interest no longer exist in the marketplace. Again, strike leverage is only effective if the industry is shut down in total, so we must eliminate alternatives. It doesn’t matter who created the schism or why, the breach must be repaired to be effective in the future. I believe it will take us up to two years to ratify and administer a merger, time and money well spent to get back to the AMPTP table with better alternatives and strength. So, take the deal, buy time, and come back stronger. The world will not end. Only egos will be bruised.

And, finally, we have to eliminate the party system that has poisoned our union. We went from a representative guild to a two-party political system that is wrought with venom and vengeance. Our internal squabbles and weaknesses are so widely known and systemically published that a bad high school debating team could beat us to a pulp, and AMPTP is no beginner.

For those who want to draw the line in the sand now, be prepared to lose, you have come to a battle with insufficient ammunition and incredibly bad timing. Stagnation, waste and turmoil await.

So, let’s cease all this aimless posturing and get smart for a change. If the reality of our situation is outside of the grasp of some, then the rest of us must fight for clarity. Think of the alternatives. I, for one, am opposed to living much longer in this SAG purgatory.
If you are similarly ready to answer the call, make your thoughts heard loud and clear all the way to the Tar Pits!

With deep and continuing respect,

Ric Reitz
SAG Georgia Branch
October 1, 2008

Posted in Exhibit A - TV Theatrical | Print | 7 Comments »

October 1, 2008 by WW.

As predicted, the TV-Theatrical Negotiating Commitee, comprised of nine Membership First members and four others has recommended that the National Board take a strike authorization vote.

The Negotiating Committee vote in favor of the advisory resoution was reported to be 11-2.

In order to pass the National Board, the strike authorization vote resolution requires only a majority vote.The new National Board, which meets in two weeks, is almost evenly divided between Membership First and other factions. If Membership First is able to get three or four votes among from the RBD and New York, it would give it a majority for holding the referendum.

However, to get a strike authorization requires a 75% affirmative vote among the members.

We won’t get into the debate over whether the authorization - or even a strike - would get us anywhere…that’s for later…and your comments.

—

Here’s the Negotiating Committee’s Resolution:

“Whereas, Screen Actors Guild has been and remains willing and able to continue formal and continuous negotiations with the AMPTP and the employers, with the intention of reaching a mutually-acceptable deal; and

Whereas, the National Board has unanimously identified the core principles of new media jurisdiction and new media residuals as essential elements of any agreement in the Television/Theatrical contract negotiations; and

Whereas, preservation of longstanding force majeure protections for actors is of self-evident importance; andWhereas, the President and Chief Negotiator have communicated this view to the AMPTP and the employers, and have requested that they return to the bargaining table to negotiate a fair deal; and

Whereas, the AMPTP and the employers have refused to change their position and have continued to refuse to meet to attempt to advance the negotiations; and

Whereas, in the opinion of the National Negotiating Committee, the AMPTP and the employers will only seriously engage in further negotiations after the members of the Guild express their confidence in their leadership by authorizing them to take all actions necessary to protect the interests of the membership, including a strike; and

Whereas, although the National Board has already unanimously delegated the authority to take a strike authorization vote to the National Negotiating Committee, in the opinion of the Committee, the strong and public support of the National Board for the necessity of a strike authorization at this time is a necessary prerequisite for its success;

NOW, THEREFORE, BE IT RESOLVED by the National Negotiating Committee that:A strike authorization vote of the membership is necessary to overcome the employers’ intransigence, and the Committee therefore recommends that the National Board authorize such a vote be taken; and further recommends:

That the National Board adopt a resolution strongly supporting such an action, and recommending that the membership vote in favor of a strike authorization; and

That the National Board endorse an educational campaign advocating a “yes” membership vote, to give the authority to the National Board to call a strike only if the National Board deems it necessary and unavoidable to do so.

“Adopted: October 1, 2008

—

AMPTP reaction was prompt and predictable:

Is this really the time for anyone associated with the entertainment business to be talking about going on strike? Not only is the business suffering from recent economic conditions, but if ever there was a time when Americans wanted the diversions of movies and television, it is now. The DGA, WGA and AFTRA reached agreement on comparable terms months ago, during far better economic times, and it is unrealistic for SAG negotiators now to expect even better terms during this grim financial climate. This is the harsh economic reality, and no strike will change that reality.

—-

Jonathan Handel analyzes the political situation. Variety adds nothing. The Hollywood Reporter also offers nothing new. The Los Angeles Times misses the point, we think, seeing this as “punting” when it’s really “pinning” - pinning Unite for Strength into a corner from which they’ll have to either take a hard (if dangerous or futile) line at their first board meeting, or face renewed ridicule by the perpetually and often foolishly hard line Membership First.

Posted in Exhibit A - TV Theatrical | Print | 22 Comments »

October 1, 2008 by WW.

Variety is reporting that Netflix and Starz have signed a deal which will give Netflix VOD streaming rights for most Starz current films. Netflix will pay Starz a licensing fee for the package.We get paid…what? Given the current new media language, as I read it, it’s not clear that any residual gets paid, much less a per run residual. Anyone want to try to explain it?

Posted in Media Business, Exhibit A - TV Theatrical | Print | 7 Comments »

October 1, 2008 by Editor.

For starters, let’s just say none of it is positive. We’re talking about the expected move by the Allens to recommend that the National Board send out a strike authorization - a move that will come through the TV-Theatrical negotiating committee, which is still controlled by Membership First, despite their recent defeat in the National Board elections that cost them majority control of SAG.With Dave McNary apparently out, the Variety story lacks context, and merely reports that the TV-Theatrical negotiating committee will meet today. The Hollywood Reporter gets it,  at least to the point that a strike authorization will likely be recommended by the negotiating committee.Jonathan Handel, however, nails it by seeing this as a preemptive strike by the Allens and Membership First on the new National Board, and likening the current situation to an Alice in Wonderland-esque bizarre fantasy. An excerpt:

“In other words, today’s vote (if it takes place as the Hollywood Reporter predicts), is a preemptive strike by Membership First against the new, moderate majority — yet another symptom of the guild’s bitter divisions. Now we’ve left Alice behind, and entered the world of the Italian Renaissance — in particular, the world of cutthroat political strategist Niccolò Machiavelli — and that of the ancient Greeks, who coined the word “hubris,” a word that surely applies to an attempt to thwart the will of SAG voters. Sometimes a rabbit hole leads to Wonderland, but other times to a place far more dangerous. Will the fall never come to an end? “

Posted in Exhibit A - TV Theatrical | Print | 17 Comments »