A letter from WGA Board Members that was sent this afternoon to members, with even more detail on the corporations' proposal.

Fellow members:

There are a lot of rumors and questions floating around, and we’d like to address them.

HAVE NEGOTIATIONS BROKEN DOWN?
No.

DID OUR NEGOTIATING COMMITTEE ASK FOR A BREAK?
No.

THEN WHY THE FOUR DAY BREAK?
On Thursday, the studios and networks gave us some of their proposals, and said they needed more time to fashion the rest. Therefore talks were scheduled to resume on Tuesday.

THE COMPANIES SAY THEY ARE OFFERING US IS A $130 MILLION INCREASE. THE GUILD CALLS IT A ROLLBACK. WHY THE DISPARITY?

Despite taking out full-page print ads touting their collusion unity, cracks are beginning to surface amongst the handful of major media corporations who make up the AMPTP's core decision makers.

To Our Fellow Members:

Yesterday, the WGAW and WGAE presented to the AMPTP a response to its proposal on streaming television programs.

We accepted the framework in their proposal of last Thursday for a fixed residual in the first year.

But rather than basing the residual for the entire first year on a small percentage of the applicable minimum, we proposed that the fixed residual be paid on a higher percentage of applicable minimum for each 100,000 streams per quarter.

This is a readily ascertainable number. In fact, the companies are already keeping records of streams for their advertisers. Both the advertisers and the companies are already using these numbers as the basis for their business model.

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.

From the Sacramento Business Journal:Pacific West Cos., of Reno, Nev., was on a roll in recent years, selling out condominium communities in the Sacramento region. Then came 2007, and a troubled housing market. The company's Montessa Attached Homes in Rocklin fizzled. The project, slated for 171 condos, has pre-sold just seven since the spring. The development company started returning deposits to those buyers last week. "We are clearing out our inventory of buyers. We don't want to string them on forever," said Taylor Cohee, head of sales for Pacific West.
...

Thank you for your overwhelming support in our email campaign earlier this week – councilmembers collectively received thousands of emails, and our work had a very real impact.

Now they know that people are engaged and paying attention, and we need to let them know our involvement is serious and ongoing. Although the special motion does not compel the AMPTP to come to the table, it becomes part of a “paper trail” that shows the AMPTP’s behavior, which will matter as we go up the political food chain (Congressional hearings, anyone?)

We're making a difference, and we need your help to keep it going.

United Hollywood is keeping CBS mogul Les Moonves in its thoughts and prayers. As Bloomberg news reports, Moonves signed a new compensation package worth, on the low end, $30 million dollars per year. But shockingly, his base salary was cruelly cut from $5.6 million in 2006 to a mere $3.5 million in 2007. Such a devastating loss of income must be particularly difficult around the holidays. It certainly is for all of us on strike or put out of work.

Perhaps when this strike is resolved -- and we writers, below the line crew, actors and directors have our income restored -- we can all chip in to help Les Moonves through his time of need. Until then, Les, if you need a place to crash, I have a futon.

biel bffs

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 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.

(The following is a post from WGA member Kevin Droney. The man made it through the '88 strike, and he knows his facts and figures.)

Why Production Crews Should Be Cheering On the Writers

I’ve talked with a few IA guys over the past few days, and they were generally unaware of a few things in their own contracts with the Alliance. To whit:

1) Their unions, including I.A.T.S.E., IBT Local 399, Studio Utility Employees Local 724, IBEW Local 40, Plumbers & Pipefitters Local 78, and the Plasterers & Cement Masons Local 755… ALL RECEIVE RESIDUALS.
2) These residual payments go directly into their PENSION AND HEALTH FUND.
3) RESIDUALS earned working on shows CONSTITUTE 55% OF THEIR P & H.
4) If there are funding surpluses from residuals, retirees receive a 13th and a 14th check in that year, instead of the normal twelve.

From the Sacramento Bee: Banks repossessed nearly 5,300 homes in the capital region during the first three months of 2008, setting a record and pushing the region's foreclosure tally to more than 15,300 since the beginning of 2007....The number of home loan defaults also neared 10,000 during the quarter in Amador, Nevada, El Dorado, Placer, Sacramento, Sutter, Yolo and Yuba counties, according to La Jolla-based DataQuick Information Systems.

Those defaults...hint at thousand more foreclosures in months to come. Altogether, the region has now seen about 34,000 home loan defaults since January 2007, according to DataQuick. From DQNews: Last quarter's default numbers were a record in almost all of the state's 58 counties.
...
Foreclosure resales have emerged as a significant market factor, accounting for 33.1 percent of all California resale activity last quarter. A year ago it was 3.2 percent. Foreclosure resales vary significantly by area, from 5.1 percent in San Francisco County to 66.7 percent in San Joaquin County.
...

(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.

From the Appeal Democrat:Our View: Stimulus plan is like giving drink to an alcoholic

When home prices soared as the result of cheap and easy credit, not many people considered that a crisis. It was fun for homeowners to stand around the proverbial water cooler and boast about the price of the house down the street. Well, prices have since fallen to the lowest levels since 2004.
...
What goes up often comes down. But there's more than a market phenomenon going on here. Federal monetary policy has a direct effect on lending practices, and the government is getting actively involved now. That, in particular, should be reason for worry.
...

(This just in from John Bowman of the WGA Negotiating Committee.)

Fellow Guild Members:

The news out there just gets worse and worse. Nationally, we got the near-collapse of Bear Stearns. Regionally, there's a 39% freefall in sales and close to 20% drop in prices. Locally, we got skyrocketing foreclosures that are only getting worse. Needless to say, the bottom is a long way off.

The easy answer for potential homesellers is: get out while you can, price it right and sell it off. But as Jim the Realtor's most recent post demonstrates, potential sellers out there continue to ponder the questions of: to keep, to rent, or to dump?

To help these indecisive sellers make up their minds, BMIT went back to a post first written back in November of '06 and recently well covered by, once again, Jim the Realtor.

From SEENcreative, this pretty much sums it up the most disgusting corporate news of the year (and it's only Feb 2):

Exxon Mobile has just reported the largest annual profit in the history of U.S. corporations: $40.7 billion.

This profit came from an annual revenue of $404.5 billion.

That's $404,500,000,000.00.

That's $1,300 per second.

Thats an additional $125 million per quarter for every $1 increase in oil prices.

col-lu-sion [kuh-loo-zhuhn]

secret agreement or cooperation between two or more parties for a fraudulent, illegal, or deceitful purpose

The New York Times reported that David Letterman is pursuing an interim agreement with the WGA that would allow his late-night talk show back on the air, even if the strike is still ongoing. As the Times article linked above states, "that could potentially put Mr. Letterman at an enormous advantage over most of his late-night colleagues."

Jim Wasserman in the Sacramento Bee: Throughout 2007, borrowers in trouble with lenders have called here, written for help and cried in conversations about their desperate straits. For a newspaper, it's become a gut reality check, a window into this tough time of reckoning.
...

From the Sacramento Bee:"We're still climbing to a peak in foreclosure activity in California," said DataQuick analyst Andrew LePage. "We don't even have a sign of the peak."
...

From the Sacramento Bee: Every business day in the region an average of 85 people lost their homes to lenders, near double the number of foreclosures from June, according to Fair Oaks-based Foreclosures.com, a Web site for real estate investors.
...
"I don't think we are seeing the worst of these numbers," said Robert Kleinhenz, deputy chief economist for the California Association of Realtors. Kleinhenz and others said they expect high foreclosure numbers to continue for at least another six months.DataQuick Stats by County
DataQuick Stats by Zip

From the Sacramento Bee: As foreclosures continue to grow in the capital-area real estate market, Sacramento and Elk Grove are copying a trend launched last year in Stockton: bus tours of bank-owned homes. As the buying season begins, three tours are planned for Feb. 23. There's one for investors in Sacramento and two for first-time buyers and investors in Elk Grove.
...

So there's an article on the strike in the LA TIMES today (oddly enough, not buried on page 8 of the FOOD section). The focus of the story was the march on Wall Street yesterday by striking writers. The financial district picketing was intended as a symbolic gesture in the WGA's fight to get a fair share of the ever-expanding new-media revenue, especially since the heads of the big media companies have been falling all over themselves telling Wall Street how much they're already making and the billions more to come.