Little hope of deal prior to deadline
Negotiators for SAG and the studios kept bargaining Monday as the final hours of the guild's contract ticked away.
With little hope of a deal before the pact expired at 12:01 a.m., the union posted a message to its members on its Web site urging them to stay on their jobs.
"All members should continue to report to work and to audition for new work past the expiration date until further notice from the guild," SAG told members Monday. "Such work will be covered under the terms of the expired television and theatrical agreements."
There was no word out of the talks as to whether a contract extension has been requested by SAG. In the absence of an extension, one contract provision that would not stay in effect is the "no-strike, no-lockout" clause. SAG president Alan Rosenberg has done what he can to diffuse the threat of a walkout, saying he doesn't even want to say the "s-word" -- as in strike.
Before calling for a walkout, the question would have to go to a membership referendum. A 75% majority would be required before the guild's leadership was empowered to call for a walkout.
No such pronouncement in regard to a lockout has come from the AMPTP; however, insiders with knowledge of the talks say there are no plans to immediately stop production on the handful of films still in production. The AMPTP could be waiting along with SAG and the rest of Hollywood for July 8, when the results of the AFTRA membership's vote on ratification of their new primetime/TV contract are expected.
SAG's TV/theatrical contract covers 90% of the TV programs in production and 100% of all films. AFTRA ended its 27-year joint bargaining agreement with SAG before the start of negotiations. SAG leaders have been fighting the deal reached by AFTRA negotiators for its 70,000 members.
AFTRA and the 120,000-member SAG have 44,000 members in common. SAG leaders are urging its members in AFTRA to vote against the deal, saying they can strike a better bargain with producers if the contract is defeated.
The studios have brought film production to a virtual halt, but work will continue on the handful of movies the majors are still filming. Sony, for example, will continue production on its tentpole pic "Angels & Demons," a sequel to "The Da Vinci Code."
"In light of what's going on with the de facto strike, a lockout might not be out of the question," said entertainment labor attorney Scott Witlin of Akin Gump. "But really, what you have is a strike without strike authorization, because SAG has already decided to offer these completion guarantees with companies other than the majors. So they are striking the majors. Anybody else (other than the studios) who chooses to can make a deal with SAG to produce."
With the contract expired, the studios could decide to make a "last, best and final offer," which it would at that point have the right to impose upon the guild. SAG would then be forced to accept it, strike, or somehow induce the studios to change their position.
The AMPTP claims that SAG is dragging its feet to the bargaining table while it waits for the AFTRA vote, a charge the guild refutes, pointing out that the studios have yet to make an offer comparable to those that brought its talks with AFTRA to a close.
While SAG continued its talks with the AMPTP, AFTRA held an informational meeting for its members Monday night in Los Angeles to explain the gains it made in its new contract.
| Key items of dispute between SAG, AFTRA and AMPTP | |||
| Home Entertainment | |||
| SAG | AFTRA | AMPTP | |
| Wants DVD residuals doubled. | Sought no change in residuals. | Claims SAG proposal would cost it $500 million, seeking no change. | |
| Actors' Clips | |||
| SAG | AFTRA | AMPTP | |
| Wants consent for use of actors' clips in new media. | Preserved consent of clips. For productions that begin after July 1, actors can approve or deny consent. | Wants same deal with SAG as it has with AFTRA | |
| New Media Residuals | |||
| SAG | AFTRA | AMPTP | |
| Still negotiating with AMPTP regarding residuals. Wants jursidiction over all programming maid for new media productions. | Established jursidcation and payment schedule for Internet-based programming | Established jurisdiction and payment schedule for Internet-based programs. | |
| Wage Hikes | |||
| SAG | AFTRA | AMPTP | |
| Backed off demands for increases in extra/guest star pay. | Agreed to wage increases in traditional media over the next three years. | Took issue with SAG's proposed hikes, issue still under negotiation. | |
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