A Strike In Search Of A Hollywood Ending

(CBS)  The quips of the late-night TV hosts notwithstanding, the entertainment writers' strike is no laughing matter. From a dearth of new TV shows to Hollywood award shows in peril, the labor stalemate is taking its toll, and at this point there seems no end in sight. Our cover story is reported by Jerry Bowen.

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This was supposed to be the day the stars shined over Hollywood - the kick-off of the glitzy, glorious awards season with the Golden Globes.

But this year, the stars are off the red carpet and walking the line - the picket line - with striking members of the Writers Guild.

So with actors unwilling to cross the line, tonight's big Golden Globes gala has been cancelled, replaced by a news conference. And other awards shows, including next month's Oscars, are in jeopardy, too.

Not surprisingly, the main issue is money. The writers of TV shows, films, and late night monologues, want a guaranteed piece of the future, their slice of the Internet world and beyond.

"It's new media. It's the future," said Patric Verrone, the president of the Writers Guild of America West.

"As we move into the internet age," Verrone told CBS News' Jerry Bowen, "we move into new distribution models. The conglomerates seem very reluctant to include writers and actors and directors in their fair share."

The movie studios and television networks agree that determining what that "fair share" is, is the key to a settlement.

Jim Kennedy is spokesman for the AMPTP, the Alliance of Motion Picture and Television Producers, the group bargaining with the Writers Guild.

"While the Internet's been around for ten years," said Kennedy, "we're all still exploring this market. It's not an automatic gold mine. There's great potential there, but unless we work together in partnership to find it, find our way together, we can't truly exploit it."

The potential of these new media lies in viewers paying to watch movies and TV shows on their computers or their iPhones, or advertisers paying to run commercials along with the programs.

The tried and true formula is that writers, like actors and directors, are paid residuals. Each time the TV show or movie they've written is re-run on cable, or sold on DVD, they receive a fee. The exception is the Internet.

The networks and studios say they'll talk about how to divide this new media pie, but they walked away from the table over other issues raised by the writers.

"What's really caused the impasse," said Kennedy, "are some additional demands that the Writers Guild have made. They'd like to cover our reality programming or animated programming. And they'd like the power to go out on sympathy strikes if other unions are having a dispute."

"Well, those are issues that are on the table at the moment," said Shawn Ryan. Ryan is the producer of such popular shows as "The Shield" and "The Unit," and he's on the Writers Guild negotiating team. He says those issues aren't the real reason the producers left the bargaining table. "The companies have other issues unrelated to the Internet that are on the table that maybe we don't agree with.

"What they are, are the excuses that the companies have given to strategically pull themselves out of the negotiating room," Ryan said. "They've not talked with us the last month and they're using the excuse of 'Oh, there's a few issues that we just don't agree with.'"

The writers' contract was the first to expire. Directors' and actors' contracts are up this spring and some of the same issues - especially carving up the new media revenues - are sure to come up. Everybody wants a bigger share of the pie.

The fight escalated with the writers' plan to picket the Golden Globes, and if need be, the Oscars. Cancelling the Globes could cost the local economy $70 million, the Oscars as much as $130 million.

"It's like an Olympics boycott where the athletes get hurt and the audiences get hurt but it doesn't reach a resolution to the underlying conflict," said Kennedy

"It doesn't seem like the right time in this town to hold a glib gala with fancy dresses and big diamond necklaces and celebrate the industry when you've got tens of thousands of crew members out of work," argued Ryan. "And it's my hope that if we don't have a deal by Oscar time we'll do the same thing to the Oscars."

The strike is having a huge economic impact. Hundreds of millions of dollars have been lost and thousands of studio workers have been laid off. They rallied, in vain, to get the talks back on track.

"There's a lot of us here who don't have work anymore because the writers and producers can't get it together to figure something out," said one former studio employee.

"It's too scary to think about," said another, "I don't know. I don't know. We could lose our house. It'll be really tough."

It's a ripple effect. Pam Elyea rents props to TV shows. She's laid off a third of her staff.

"This time of year I should be working on 'Cold Case,'" Elyea said. "I should be doing 'Ghost Whisperer,' 'The Office,' 'My Name Is Earl.' I mean, all those shows come in every week and they rent from us. So not only do I not have those shows, but each of those crews aren't working. Each show I mentioned, that's 110 people out of work."

When the strike began in early November, work stopped on all new scripts. That was less a problem for the movie studios (which stockpiled future projects) than the TV networks (which felt the pain immediately).

Late-night shows went into re-runs, prime time dramas and comedies ran out of fresh material. Long-running shows became instant cliff-hangers, waiting for scripted endings.

"I think both sides are really losing right now," said Brian Lowry, a critic for Variety. He says the ghost of 1988 (the last time writers went on strike, when networks filled the void with novel programming) is looming.

"A very young Fox network launched two shows that are still running today," Lowry said, "which is 'America's Most Wanted' and 'Cops.' And both of those shows were launched because they were unscripted. One issue that the writers have to be concerned about, the longer the writers are out, the more time the networks will have to experiment with reality shows and unscripted shows."

On the network side, there is the potential for losing even more viewers. That was accelerated by the writer's strike of 20 years ago. This time around there are even more options to go to, from cable to the home computer.

"The question is," said Lowry, "as the people find other options, how many of them will really get to like those options and won't come running back when the networks come back and ring the dinner bell again?"

As the impasse continues there are chinks on both sides. Some writers are grumbling over the get-tough strategy of the Guild. A few smaller producers, like Tom Cruise's United Artists, the Weinstein Company, and David Letterman's Worldwide Pants, have struck side deals with the Guild to get writers back on the job.

A-list actors like Tom Hanks and George Clooney are encouraging an end to the dispute.

The next possible development may come with the directors, who started negotiating their new contract with the producers just yesterday. If they reach a deal, it could set a pattern for the writers. Or not.

"They can make a contract with the Directors Guild that really doesn't have much bearing on us," insisted Verrone. "They need to have a contract with us in order to end the strike."

Without that, the winter of walking the line and re-running old shows promises to drag on, in search of a Hollywood ending.

[scholastica8]

When one is a regular on a film or an hour long series, getting those hours is not hard. However, if you are not a regular, you are day checking, which means getting whatever hours you can where you can. Maybe 1 day on a film will give you 18. 1 day on a TV series might get you 12. Maybe you can get lucky & fill in for a regular person who is sick & so get a 60-80 hour week, but that does not often happen. When the strikes end, everybody will be competing for those jobs & hours, because there will be many series you will not see again. Films & series will not begin shooting film the day the strike ends. It will take weeks or months for "Hollywood" to get back to real production.

[scholastica8]

9. As for the benefits someone mentioned. My medical benefits depend on my working 300 hours per 6 month benefit period. I have a bank that can hold up to 450 hours.

Our medical coverage is one of the best because long ago the producers realized that they had to keep crews healthy & working... hours are grueling & film sets are not safe - each set, each location is different in the problems it presents. Stages are dark, exept for the working set.) The benefits actually come via the motion picture producers, not the union. The 300 hours I accrued last fall are now paying for my medical until 30 June. My bank will then pay for the period ending 30 December 2008. After that I shall only have 150 hrs left. So, sometime between this coming July & December I must pick up another 150 hrs under the correct contract (because not all contracts are created equal) in order to keep my medical. Other unions & guilds have different rules. Independent production companies often use non-union crews.

[scholastica8]

8. The people truly caught in the middle are those who are writer-producers, aka "show runners." They often head production companies affiliated with the major studios. In return for cash paid by the studios for up-front costs (which the studios get from advertisers for promised ratings), the "show-runners" & their companies are contracted to deliver a certain number of episodes by specific dates. If they do not, the studio can then break the contract & sue.

None of the "show runners" wanted the strike. It is destroying their companies & has opened them to personal lawsuits. On my show, the "show runners" left us with 2 more completed, ready-to-shoot scripts. One even worked on the first day of the strike by getting into the studio before the picket lines went up. He got home to a very angry message from WGA. So he''s on strike against himself. Unfortunately, despite having those scripts ready to go, the studio for which my show was being made, pulled the plug. My guess is that the production company is now a gonner, as is the show & another that was in the works.

[scholastica8]

5. The residuals are a sticking point, but even moreso is the fact that WGA wishes to organize "unscripted" series.

6. On the Sunday night before the strike, headway was being made here in LA. Everyone was apparently feeling good. The negotiating group broke for dinner around 7:30pm... & were to resume at 9pm. Unfortunately, 9pm here was midnight in NYC. The WGA in NYC struck at midnight their time & that ended the negtiations in LA... with some bad feelings.

7. The chief negotiator for the WGA has no showbiz background. He is a hardnosed professional union strike organizer. His last job was for the Garment Workers Union in a strike against Guess. This has been a major problem in dealing with the negotiators for AMPTP... & even for other members of the WGA negotiating committee. He may have immersed himself in WGA & its legalities, but he does not know the industry, nor the people who work in it.

[scholastica8]

3. The residual issue is a sticky one. It is everyone''s belief, whether or not they say so, that in 10-15 years virtually all TV will be delivered over the Internet... same for films... no more regular network programming, no more DVDs, but all will be done as Pod Casts. If this happens, residuals will go away forever, unless this issue is settled now.

4. Goliath''s record is not too good. I was working back when VHS & cable contracts were negotiated. The Corporations won huge concessions from the unions. Statements were made like, "We don''t know if these new media will pay off." "The public may not want it." "Give us time to make it grow, create more work, then we''ll come back & give you your fair share." Hooey. That fair share never happened... not for WGA, DGA, SAG, nor my union IATSE.

[scholastica8]

I don''t know that anyone is still reading this article, but through the past weeks, I''ve read so much BS that this provides a forum to counter some of it.

There are a couple of things I should have explained. Just so that the whole mess is a little better understood.

1. Once upon a time, it was artists & workers vs "studios" & producers. The "megastudios" are now merely the film division of multinational corporations (GE, Sony, News Corp, etc.) So it really is David vs Goliath.

2. When SAG''s contract ends on 30 June, actors will probably strike. The issues are exactly the same, but perhaps are even more important to the actors. Whatever WGA gets, SAG will want more. Therefore, the "studios" really cannot budge much. Small, independents, don''t really matter that much in the scheme. The are working under interim aggreements. It doesn''t mean a sudden explosion of production. These small, lower budget companies are often working under separate agreements anyway. Worldwide Pants is owned by David Letterman. His shows will never produce much in residuals because they are topical & rarely get rerun. They have very limited use. He is the head writer & so is paying himself.

[techy123]

The strike has not affected me much. I''m only occasional irritated when I can''t watch a fav drama during dinner time. I don''t really care.

However, I would like to applaud the "below-the-line" people''s (re: scholastica8''s multipost explanation) efforts to weather it out during these tough times. Your work hard makes the world a happier place to live in.

So keep holding on & come back after the strike ends.

[lulu13976]

I just feel the general public is way too sympathetic when it comes to those in Hollywood. I understand the writers are fighting for what they believe they are due, and more power to them. But when the everyday Joe who works down the street at the local grocery store goes on strike, all you hear from neighbors, coworkers, and local news is enough is enough, "Those grocery people have it good." They don''t know how good their benefits are, and so on. We need to support our local every day men and women in our OWN communities. People who''s children go to school with ours,as well as church, and see while pumping gas. Let''s remember what''s really important. Our communities, and families. It takes all of us regular Joe''s to keep our communities together. So stop worrying about Hollywood so much and remember what''s happening in our neighborhoods.

[aspca19]

I can understand where the writers are coming from but i am sorry . this is getting old. i am sick of hearing about we want more money. i am ticked off that i won''t be able to see the stars arive and hear there speaches and stuff. i am sooo mad. grow up and get back in there and start writting .. i am sorry if i seem like a jerk but for people who watch the golden globes and oscars it is a chance for us to see the stars and it sucks .. its getting old... anywho good luck johnny depp..

[jkantor]

A Hollywood ending would be destruction of the megastudios.