SAG requests federal mediators to intervene in contract talks

By Brian Frederick

Fight not over yet

HOLLYWOOD,CA(RushPRnews/Hollywood Today)10/23/08 - “If 75% of the qualified SAG members who vote in the referendum support the strike authorization, only then can the national board of directors call an actual work stoppage,” SAG wrote in a written statement to its members. The Screen Actor’s Guild national board elected to pursue federal mediation in order to resolve their contract dispute with the Alliance of Motion Picture and Television Producers this week.

As a backup to possible failed negotiations with the federal mediator, SAG’s board will ask its members to authorize the national board to organize a strike against the studios should those negotiations fail. A strike authorization by SAG’s members does not guarantee the national board will call for a strike, it only gives the national board the authority to call for one if they deem a strike to be in their best interest.

Educational materials and strike authorization information is being sent to SAG members now. If SAG members authorize a strike it could take six weeks for a referendum to pass.

At the heart of contention between SAG and the AMPTP is contract coverage to include programs for the internet and residual payments to actors for made-for-internet shows.

“There is simply no justification for SAG to expect a deal that is in excess of what other Guilds negotiated in better economic times,” the AMPTP wrote in response to SAG requesting strike authorization from its members.

The AMPTP has stated their offer is similar to the contracts it negotiated with the Director’s Guild, American Federation of Television and Radio Artists, and the Writer’s Guild after the latter struck against the studios for 100 days. It is estimated the economic loss created by the writer’s strike cost Los Angeles County an estimated $3 billion.

SAG’s contract with the studios expired on June 30 of this year, although the two entities continue to operate under the expired contract. Studio production is not running at full capacity and hiring in many companies has been frozen for nearly two years now. The studios, agencies, and casting companies instituted a hiring freeze one year in advance of the four guilds contract’s expiring this year. With the last holdout being SAG, companies have been reluctant to hire. In essence, Hollywood is operating under a de fact strike concept and many industry and non industry personnel are being hurt financially by the slow down.

Given the current economic conditions in the economy coupled with the de facto strike, predictions are varied as to which side will cave in first. What can be predicted is that any economic loss created from a poorly conceived contract for SAG members could spell disaster for SAG’s board. Member dissension is already very high within SAG and could get worse if SAG goes on strike.