Deal in Sight to End Writers' Strike

Michael Cieply - International Herald Tribune

Informal talks between representatives of striking Hollywood writers and production companies have eliminated the major roadblocks to a new contract, which could lead to a tentative deal as early as this week, according to people who were briefed on the situation but requested anonymity because they were not authorized to discuss the matter.

The agreement may come without renewed formal negotiations between the television and movie writers and the Alliance of Motion Picture and Television Producers, though both sides still need to agree on specific language of the main provisions. If that goes smoothly, a deal may be presented to the governing boards of the striking Writers Guild of America West and Writers Guild of America East by the end of the week.

The breakthrough occurred Friday after two weeks of closed-door discussions. But even if approved by leaders of the guilds, a deal would require ratification by a majority of the more than 10,000 active guild members.

Writers walked out Nov. 5 after failing to reach a contract with producers through months of difficult bargaining. Talks resumed in December, but quickly broke off. The latest round came more than two weeks ago in the wake of a tentative contract agreement between producers and the Directors Guild of America.

That deal confronted many of the same issues that have troubled writers - including pay for digital distribution of shows and movies - and paved the way for the forward movement.

A final sticking point had been compensation for advertisement- supported television programs that are streamed over the Internet after their initial broadcast.

Companies were seeking a period in which they could stream such shows without paying a residual and wanted to peg payments for a year of streaming at the $1,200 level established in the directors' contract. Writers were seeking 1.2 percent of the distributors' revenue from such streams. How the issue was resolved remained unclear.

The talks were made particularly difficult by strong cross- currents in the guilds. Some members favored a rapid settlement along lines established by the directors, whose tentative deal made large gains in the area of digital media but stipulated that new pay schedules could not be regarded as final because the markets were still not mature.

Other writers argued that a much bigger step was required immediately.

The producers' side was represented at the informal sessions by Robert Iger, chief executive of Walt Disney; Peter Chernin, president of News Corp.; and Leslie Moonves, chief executive of CBS.

Writers were represented by Patric Verrone, president of the West Coast guild; David Young, its executive director; and John Bowman, who headed the guilds' negotiating committee. Alan Wertheimer, a prominent entertainment lawyer, also worked with the writers.

Even if the writers and producers hammer out a final agreement, there is no guarantee that there will be an end to labor strife in Hollywood. The companies' current contract with actors expires June 30, and leaders of the Screen Actors Guild - a staunch ally of writers throughout the strike - have said they did not expect to begin negotiations early.

But the American Federation of Television and Radio Artists, which shares many members with the Screen Actors Guild and has traditionally negotiated jointly with it, appears likely to start bargaining soon with companies on its own.

The writers' walkout has not fully shut down Hollywood. But it has stopped production of dozens of television series, ended development work on films, and created bitter divisions in the entertainment world.

One of the sorest points has been whether the 80th Academy Awards show, scheduled for Feb. 24, would proceed with its usual complement of stars and without pickets. A rapid agreement would clear the way for the ceremony.

----

More movie news

Copyright 2012 by International Herald Tribune