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Another AMPTP Blunder: Force Majeure

An analysis by United Hollywood's Jeffrey Berman. -JA.

Two significant developments happened near the end of last week: The AMPTP agreed to come back to the negotiating table, and dozens of actors received letters of suspension due to force majeure, including the casts of 30 Rock, The Office and Rules of Engagement.

These two events couldn’t be more contradictory.

Force majeure literally means "greater force." It’s a clause in a contract that covers natural disasters or other "Acts of God.” Force majeure excuses a party from liability if some unforeseen event prevents it from performing its obligations under the contract.

So if the AMPTP is willing to get back to the table and negotiate, why are Sony and Universal laying off scores of actors? The answer is pretty simple: It’s an attempt to drive a wedge between the Screen Actors Guild and the WGA because SAG members have been extremely vocal in their support of our cause. But once again, the APMTP and its members have just made a major miscalculation. The issues we’re striking over today are the same ones that SAG will fight for seven months from now when their contract expires. The force majeure, which is essentially a "lock out" action by the companies, isn’t going to drive a wedge between our guilds. Instead, it's going to push 120,000 actors into the fray earlier than expected.

So on the one hand, the AMPTP giveth, appeasing the state legislators who have been leaning on them to come back to the bargaining table, while on the other hand they taketh away. In the process they create an even stronger bond between SAG and the WGA.

Makes you wonder where the Directors Guild will stand in all of this.

The upside for those suspended actors is, when we all go back to work -- and we will all go back to work, eventually -- this may be a great opportunity for them to renegotiate better contracts when the strike ends. But for now, I’d look for the picket lines to continue to grow as more actors and actresses find themselves without work and radicalized by the AMPTP's fumbling, hostile gambit.

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  • This letter was just sent to WGA members. It talks about the new deals that are being made with various companies, and the need for patience while the DGA negotiates; but it also deals with the possibility that some force majeure firings may not be legal. -- LK

    To Our Fellow Members,

    As you know, since the conglomerates walked away from the bargaining table on December 7, we have adopted the

  • December 16, 2007

    Dear Writers Guild of America Members,

    I am writing to you on behalf of 120,000 proud members of Screen Actors Guild who stand with you in solidarity as your strike continues. We believe that now more than ever, we must remain strong and even more committed to achieving our common objectives. We are proud to walk shoulder-to-shoulder with you and SAG will be there for as long as it takes.

    Your fight is our fight. Our National Executive Director Doug Allen and I are working around the clock with Patric Verrone and David Young to coordinate our strike support efforts. I'm sure you have seen some of the thousands of Screen Actors Guild members who've been walking the picket lines in Los Angeles, New York and around the country for the last six weeks.

  • Statement from Chief Negotiator David Young and the WGA Negotiating Committee.

    We have attempted to negotiate with the AMPTP companies since July. First they ignored our opening proposals. Then they told us we had to choose between their two horrible proposals. Then we removed DVDs from the table. Their response was to walk out of negotiations and tell the press that we were the ones who walked. Last week they presented us with another set of ultimatums. They didn’t even wait for a reply but broke off negotiations and walked out again.

    There is a strategy at work here.

    In any negotiation there are bottom line goals and “fringe” goals. The AMPTP wants to make the WGA reduce our demands to the bottom line so we’ll negotiate down from an acceptable deal to a bad deal If we do this, as we did with DVDs, you can be sure they would not hand us the deal we want. They would simply try to further wear us down.

  • (We want to welcome SAG Member Justine Bateman as a regular contributor to United Hollywood. We hope to continue opening the site up to more voices from SAG and other unions. Justine reminds us that this fight belongs to all of us. We're all on the same page.)

    Attention all SAG Actors:

    I believe it's appropriate at this time to call all actors into action in support of the Writer's Guild on strike.
    I know many of us have been walking the picket lines and attending the rallies, but I want to challenge ALL SAG members to see if they can commit an HOUR-A-DAY to walking the picket lines.
    The AMPTP has been jerking the Writer's Guild around.
    1. They offered nothing but insulting Roll-Backs to the WGA in the negotiations that caused the strike.

  • Something's very different on the picket line.

    Since Thanksgiving, the energy on the picket lines has fallen off. One picketer was even seen reading a book while he walked the picket line.

    It seems like only yesterday that we were chanting to stop trucks from crossing the picket line or "2-4-6-8, Why won't they negotiate." The turnout and the energy paid off. The AMPTP rejoined us at the negotiating table and that was great.

    But now....we wait....in a news blackout.

    Getting the agreement to restart the negotiations felt climactic, because so much energy had to be expended to get the AMPTP to do the right thing, but "restarting" the talks didn't mean "concluding" them.

  • Responding to my post ("The Faces of the Strike") earlier today, Anonymous said what a lot of us have been thinking. I think it's worth reprinting in its entirety.

    Anonymous said...

    Not "some accountant in one of the AMPTP companies"...every single company has done extensive financial analysis on this situation, and it's what will drive all decisions made from the AMPTP side.

    Business decisions from executive management are based almost exclusively on finances...and often short term finances over long- or medium-term finances.

    AMPTP knows exactly when this strike will end.

  • The strike is over. The WGA contract has been ratified. SAG and AFTRA are now center stage and there is still a lot of work to do before the town gets back to normal. At this moment it's useful to look back at our own history. There are lessons to be learned about how the process can move forward even against what seems like overwhelming odds.

    There are many who labored behind the scenes to support the writers' strike. At United Hollywood we worked with people who put their energy on the line but wanted to stay off the media's radar. Not content to just talk a good game, these are members and supporters who knew that if they wanted to make a difference, they had to work at it.

    One group in particular came of age during the early part of the strike: the writer-directors. Nicknamed the WD-40, forty writer-directors met to search for ways they could help facilitate the negotiation.

    From the beginning of the strike, most journalists accepted the AMPTP's lead and described the DGA and WGA as antagonistic to one another. Nicholas Counter was frequently quoted in the trades as preferring the DGA as a negotiating partner. The writer-directors objected to that characterization and felt that the AMPTP was doing what it always did in positioning the Guilds against one another to diminish each union's power.

  • (The following is an excerpt from Michael Russnow's Huffington Post piece. For the full article click here.)

    I like George Clooney and I like Tom Hanks. Who doesn't? From their screen personas to their amiable chats with David Letterman. They seem like nice guys and appear committed to good works and deeds, from Clooney's work on behalf of Sudanese refugees to Hanks' paying homage to our military veterans.

    However, I'm concerned about their outspoken efforts to head off a SAG strike. Not because it would obviously be preferable to avoid a work stoppage so soon after the three and a half-month WGA industrial action, but because what they appear to be doing works against the very potential for which the Screen Actors Guild was originally created.

    It's all well and good to make statements of a general kind regarding the need for the conflicting parties (the AMPTP and SAG) to be bargaining at the negotiating table, but the methods these well-intentioned actors have employed seem to be of a hurrying design that, by their very nature, take the air out of the balloon of solidarity and play right into the hands of the AMPTP.

  • (News Release from the Writers Guild of America)

    Hundreds of Screen Actors Guild Members Join Picket Lines Outside Universal Studios

    on Day Nine of WGA Strike

  • To My Fellow Members,

    This afternoon, the Directors Guild announced that it would commence formal negotiations with the AMPTP tomorrow. In a joint press release with the Screen Actors Guild, the Writers Guilds, West and East, wished the DGA well and offered our hope that they achieve a fair deal that incorporates principles that will benefits all creative artists. We further stated that, while

  • This was submitted by WGA member Christopher Trumbo, member for 40 years, and son of WGA member Dalton Trumbo. His insights into the history of the guild are especially valuable now, as the strike continues and the AMPTP tries to divide us.

  • Interesting things, facts. They are simply what they are. And yet sometimes you can read a lot into them.

    Here's a fact:
    On December 18, the Writer's Guild testified before the Los Angeles City Council about the economic impact of the strike.

    Here's another fact:
    The AMPTP didn't show up. [Gosh, just like at the negotiating table.]

    Instead, they asked the MPAA to take care of it. The MPAA represents the AMPTP before all levels of government throughout the world. The MPAA also provides economic data and information on the motion picture and television business to the public.

    And one more fact:

  • The last day of official picketing ended with a high point at Fox.

    Writers were joined on the picket line by many supporters. The honking at the Pico gate reached new decibel levels as crowds of picketers filled the sidewalk and waved their signs at the passing traffic.

    The signs told the story: "WGA-DGA-SAG", "The House is Not Divided," "DGA-WGA Member," "Union Solidarity".

    The appearance of so many SAG and DGA members made the point that even though the AMPTP spin machine works hard to create the impression that there is dissension between the unions and in the ranks of the WGA, the opposite is true.

    Of course the strike has created tensions. How could it not?

    There should be tensions when so much is at stake and so much has been sacrificed in the fight with the congloms. But our common interests outweigh that tension, and our solidarity is real.

  • Patric Verrone and Michael Winship just sent this message to the membership. The WGA is determined to stay at the table until we have a deal. If the AMPTP wants to negotiate in good faith, and end the strike, we are at the table.

    Dear Fellow Members,

    Before we head into negotiations this morning, we want to give you an update on where we stand.

  • (Breaking news from the WGA - the AMPTP has agreed to come back to the table on November 26th. Now, let's hope they are prepared to make a fair deal. This is progress. Everyone wants to go back to work. Everyone wants fair compensation for their work.)


    FOR IMMEDIATE RELEASE

    November 16, 2007

  • United Hollywood has secretly obtained a transcript of one of the earlier negotiating sessions which illustrates just what the writers are facing at the bargaining table...

    WGA: We'd like a whopping four pennies more on each DVD sold.
    AMPTP: We're going to punch you in the face and take your dog.
    WGA: We'd like to be compensated for our work that's distributed over the Internet.
    AMPTP: We're going to punch you in the face and take your dog.
    WGA: We don't think it's fair you're trying to have short-form content written non-guild.
    AMPTP: Fine. We won't take your dog. That's off the table. After you shout from the rooftops and thank us, which proposal are you going to take off the table?

  • Robert J. Elisberg's latest Huffington Post column, WGA Strike Primer: Spin the Bottle, puts the latest AMPTP ploys and PR stunts into perspective. The entire piece is a must read but here are some highlights...

    Regarding the AMPTP releasing a press release just 20 minutes after storming out of negotiations (again) and demanding the WGA drop six issues or else the companies "petulantly won't even talk," Elisberg writes...

  • Writers Guild of America, West (WGAW) President Patric M. Verrone has issued the following statement in response to the Screen Actors Guild (SAG) statement that actors will not cross WGA picket lines to appear on the Golden Globe Awards as acceptors or presenters:

    We are grateful to our brothers and sisters in SAG for their continued solidarity and support.

    The entire awards show season is

  • The following letter was written by Carlton Cuse and sent today to members of the WGA. His candor and honesty are deeply appreciated by all of us here at UH. The AMPTP is counting on us becoming more divided as time goes on. But we believe the opposite will happen -- is happening, right now. We are staying strong.

    To my fellow WGA Members,

    I want to clear up any misunderstanding about where I stand.

    On November 16 I, regretably, was quoted by a Wall Street Journal reporter saying I was going to perform some of my non-writing, post-production duties on episodes of LOST to protect the show for the fans. However, I'm sure to the delight of the AMPTP, my statement became the story and gave the false impression that there was disunity among showrunners over the issues of this negotiation.

  • (WGAw President Patric M. Verrone released the following statement a short time ago)

    December 13, 2007

    To My Fellow Members:

    The AMPTP and each of its member companies have a legal obligation to bargain in good faith with the WGA. Their unilateral walkout from negotiations last Friday and their on-going refusal to bargain is illegal under the National Labor Relations Act. Therefore the WGA today filed Unfair Labor Practice charges against the AMPTP with the National Labor Relations Board.

    The DGA’s announcement today that it may begin negotiations with the AMPTP in January in no way relieves the AMPTP of their legal obligation to negotiate with us. The only legal way for the AMPTP to remedy the Unfair Labor Practice charge we have filed is to return to the bargaining table.

  • Screen Actors Guild President Alan Rosenberg announced today:

    "After considerable outreach to Golden Globe actor nominees and their representatives over the past several weeks, there appears to be unanimous agreement that these actors will not cross WGA picket lines to appear on the Golden Globe Awards as acceptors or presenters. We applaud our members for this remarkable show of solidarity for

  • The WGA Negotiating Committee, on behalf of the Writers Guild of America, West (WGAW) and the Writers Guild of America, East (WGAE), today issued the following statement regarding Contract 2007 negotiations:

    “The Writers Guilds met today with the AMPTP and discussed issues of jurisdiction for original content for the Internet, Reality TV, Animation, and Basic Cable. The talks also were focused on contract enforcement. For the last two days, we have had substantive discussions of the issues important to writers, the first time this has occurred in this negotiation. However, we are still waiting for the AMPTP to respond to all of our proposals, including Internet streaming of theatrical and television product and digital downloads. Bargaining resumes tomorrow at 10 a.m.”

  • This is the letter that was just sent to the membership:

    AMPTP BREAKS OFF NEGOTIATIONS

    Today, after three days of discussions, the AMPTP came back to us with a proposal that included a total rejection of our proposal on Internet streaming of December 3.

    They are holding to their offer of a $250 fixed residual for unlimited one year streaming after a six-week window of free use. They still insist on the DVD rate for Internet downloads.

    They refuse to cover original material made for new media.

  • (With all the best to Frank Pierson and thanks to Jon Avnet)

    The latest AMPTP offer, Thursday's "groundbreaking" proposal, certainly wasn't what any of us hoped for. If we assume the AMPTP sincerely wants to end the strike, then everything they've done so far is counter-intuitive. Given the stakes, their behavior is crazy-making. Most members were shocked and demoralized that the offer was so inappropriate.

    But when has anyone enjoyed a negotiation?

    Personally, I hate negotiating. At first it feels good when I'm thinking about what I want. My mind's racing with the possibilities. But when the process starts and the first counter-offer comes in, I go through the seven stages of grief. If I want a deal that I can live with, I have to tough it out.

  • The California Democratic Party is officially on record as supporting the WGA's strike action. Stating in their resolution:

    WHEREAS, the Association of Motion Picture and Television Producers (AMPTP) has refused to recognize the legitimate claims of the approximately 12,000 members of the Writers Guild of America (WGA) to fair remuneration through residuals on the distribution of its members’ creative endeavors on any current distribution platforms and those yet to be developed, including the monitoring and enforcement thereof; and

  • For those of you who missed this news, here is the announcement from Friday about bargaining with individual companies. Since the AMPTP has so many competing agendas and can't reach consensus, perhaps its individual members will consider their own self-interest and negotiate their own deals.

    A Message to the WGA Membership from its Negotiating Committee

  • (The piece below comes from a WGA member who would like to be known as "Red Sox Fan.")

    The Ol' AMPTP Mindf*ck™

    Has anyone noticed a pattern in the last couple weeks' worth of negotiations?

    Monday is energetic and everyone's buoyed by the residual anger from the way last week ended. Tuesday there's a sense that they're "really talking." But by Wednesday, there's a creeping sense that nothing good is actually happening.

    And on Thursday, the companies do the AMPTP Mindf*ck™.

    First, it was the New Economic Partnership. This week it's "we're going to take our marbles and go home. Which means you can't play because we own all the marbles."

  • Tim Lea wrote an email which Mike Royce and Steve Skrovan made us aware of. We’ve excerpted his analysis of the strike to highlight his truly inspired perceptions.

    Hey all --

    So the AMPTP has responded. Four days of 'meetings', and the resulting offer is a strange hybrid of calculated low-balling, contempt and picaresque fantasy that would better become a Voltaire novel than an early 21st-century labor negotiation.

  • Three of the original Munchkins from THE WIZARD OF OZ will be joining striking writers on the picket line Friday morning at NBC Studios in Burbank. Among them will be Jerry Maren, the original Lollipop Kid who uttered the famous line, "We represent the Lollipop Guild."

    Unfortunately for Jerry and his co-stars, the Lollipop Guild didn't have any better luck than other Hollywood guilds of the era in getting the actors or its screenwriter any residuals for their creation which has earned an untold fortune in the years since.

  • Can this really be true?

    The Air Force is tightening restrictions on which blogs its troops can read, cutting off access to just about any independent site with the word "blog" in its web address. It's the latest move in a larger struggle within the military over the value -- and hazards -- of the sites. At least one senior Air Force official calls the squeeze so "utterly stupid, it makes me want to scream."
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