The coronavirus crisis is expected to delay the start of contract negotiations between the Writers Guild of America and Alliance of Motion Picture and Television Producers that were originally scheduled to begin next week.
Insiders at the WGA and AMPTP have been trying to sort out how to adjust the negotiations schedule in light of the complications posed by the public health crisis that has shuttered a wide swath of the entertainment, sports and live entertainment business, plus film and TV production.
The sides were set to begin talks March 23 at AMPTP headquarters in Sherman Oaks. That was already seen as a tight timetable given the complexity of the issues at stake and the May 1 expiration date of the current contract. But there’s virtually no chance that the meeting will be held in person, given that the talks usually pack 50 or more executives around the AMPTP’s extra-long conference table. Such a move would violate the federal and state call for aggressive social distancing efforts to slow the rate of the virus that threatens to overwhelm the U.S. health care system.
The stock market’s plummet and the promise that the pandemic will send the U.S. and other markets into a recession means that the contract talks will be held in a very different business environment than the one negotiators expected to haggle in just two weeks ago.
Representatives for the WGA and AMPTP declined to comment.
Industry sources said WGA and AMPTP officials have discussed the possibility of a contract extension in light of the extraordinary circumstances. The AMPTP was said to be considering making a proposal to shift the talks to late summer. The disruption to regular work routines over the past week means that both sides are likely behind in preparations for the collective bargaining sessions.
The WGA West and WGA East negotiate the master film and TV contract together. Sources close to the situation said the internal discussions in both camps were fluid and there was no certainty yet as to a solution to the scheduling challenge. One source said the option of a smaller group of negotiators meeting by video or teleconference on March 23 remained a possibility.
The WGA surely has to be concerned about losing, at least for now, the pressure of the ticking clock by negotiating in a short window leading up to the threat of a strike after May 1. The deterioration in the business climate changes the dynamic for negotiators from both sides.
The AMPTP signaled its major move in the 2020 cycle of contract negotiations — a sweetening of residual fees for made-for-streaming series, to address the discontent in the creative community with the compensation structure for digital-first programming. The AMPTP already signaled its willingness to boost the fees for made-for-SVOD shows in the tentative three-year contract reached earlier this month with the Directors Guild of America.
The WGA is expected to push hard for additional gains, notably higher residuals for network and cable programs that are made available in syndication via streaming platforms. Hollywood scribes also want to see improvements in per-episode compensation and stricter rules about length of time that writers can be committed to working on shows — a thorny issue for writers that has become known in WGA-AMPTP shorthand as “span.”
The AMPTP is said to be concerned about giving WGA more time to prepare and organize for a strike. The WGA also typically tries to ensure that its negotiation come before the AMPTP sits down with SAG-AFTRA, lest the WGA have to sit on the sidelines while directors and actors drive the agenda for the 2020 cycle.
Industry sources predict that the AMPTP-WGA talks will move to later this year but the scribes will still be guaranteed to negotiate ahead of SAG-AFTRA. If that happens, that would likely mean a contract extension for SAG-AFTRA, which has a June 30 expiration date.
The WGA last went on strike for 100 days — Nov. 5, 2007 to Feb. 12, 2008 — when the guild and the studios faced a similarly tough negotiation at the dawn of the digital age for TV and film content.