Actors Union Approves Pact With Producers

By LAUREN A.E. SCHUKER
Wall Street Journal

July 9, 2008; Page B8

http://online.wsj.com/article/SB121556826732438011.html?mod=hps_us_whats_news


Members of Hollywood actors unions approved a new three-year contract in a 
vote that was closely watched in Hollywood as an indication of whether the 
larger Screen Actors Guild will be able to continue pressing for a better 
deal in its own contentious labor talks with film and television producers.

Members of the American Federation of Television and Radio Artists approved 
their new contract with a 62.4% majority. In recent weeks, the Aftra vote 
became something of a referendum on the actors' desire to continue 
negotiating for a better contract with the studios, as the two unions share 
about 44,000 members. SAG, currently embroiled in difficult talks with 
Hollywood studios, campaigned vigorously against the new Aftra deal as a 
means of demonstrating that its members are willing to aggressively pursue 
better terms in their own contract -- even on the heels of a crippling 
100-day strike by screenwriters last winter.

Aftra members approved the new contract by a lower margin than in the past, 
when contracts were jointly negotiated with SAG. The lower approval margin 
is bound to be interpreted by some as a sign that SAG's leadership has 
significant support to continue pushing the studios for a better deal. 
Others will declare the vote is a rebuke of the rival union's leadership 
and a sign SAG might have to settle.

As a result, the SAG contract won't get resolved for some time. SAG hasn't 
yet called for a strike-authorization vote, despite the June 30 expiration 
of its contract. But its members possibly could be locked out by movie and 
TV producers if negotiations don't quickly progress. Another possible 
scenario involves declaring an impasse in the talks, which would allow the 
studios to impose parts of their final offer.

The Aftra deal is the fifth labor agreement made between the studios and a 
Hollywood union this year, after a three-month strike by screenwriters in 
late 2007 and early 2008 brought film and TV production to a near 
standstill. Labor battles with the actors this spring resulted in a work 
slowdown, as the studios fretted about starting productions that could be 
shut down by a strike. Consequently, there are almost no films currently in 
production.

SAG is now the only major Hollywood union left without a contract. But it 
is unclear whether SAG will make its own deal soon. SAG leadership says the 
studios' final offer -- made last week -- is still insufficient in many 
important areas, like actor compensation and force majeure.

In late May, Aftra made the tentative deal with the studios that was 
ratified Tuesday. That was the first time in 27 years that Aftra and the 
120,000-member SAG negotiated separately. SAG and the Alliance of Motion 
Picture and Television Producers, the studios' bargaining arm, are meeting 
later this week. The Guild has announced it will meet with the Alliance 
Thursday afternoon to discuss the final offer on the table.

It remains to be seen whether the results will help or hurt SAG's 
leadership. Some will see it as a setback for the union, but others will 
see the results as encouraging SAG leadership to fight for a better 
contract because the margin of approval is lower than previous contracts 
ratified this year. Doug Allen, SAG's national executive director, says, "I 
hope that management will recognize that this vote is not a productive 
result for them."


================================
George Antunes, Political Science Dept
University of Houston; Houston, TX 77204
Voice: 713-743-3923  Fax: 713-743-3927
antunes at uh dot edu

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