Posted: 9:22 AM- Hollywood writers and studios may be close to reaching a labor agreement and bringing an end to the three-month strike that has put more than 11,000 people out of work.
The groups, represented by the Writers Guild of America and the Alliance of Motion Picture and Television Producers, are making progress on a contract, two people familiar with the talks said. The New York Times reported Feb. 2 that the sides may reach a provisional accord as early as this week. The deal would have to be approved by a majority of the guild’s members.
Writers walked off the job Nov. 5, demanding more money for their work used on the Internet and forcing News Corp., Walt Disney Co. and other studios to halt production. A prolonged strike threatens the Academy Awards telecast scheduled for Feb. 24 because actors siding with the writers won’t cross picket lines to walk down the red carpet. The strike has already cost the local economy of Los Angeles an estimated $1.8 billion.
“I fully expect the strike to be settled sometime in the next three weeks,” said David Smith, a professor at Pepperdine University in Malibu, California, who specializes in labor relations. “The writers strike hasn’t yet turned public sentiment against them, but with further inconveniences, it could turn very quickly.”
Jesse Hiestand, a spokesman for the studios, declined to comment. Gregg
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Mitchell, a spokesman for the guild, couldn’t immediately be reached for comment.
News Corp. Class A shares fell 21 cents to $19.20 at 9:54 a.m. in New York Stock Exchange composite trading. Burbank, California-based Disney, the owner of ABC, gained 18 cents to $30.84. New York-based CBS Corp. slipped 16 cents to $25.35, and General Electric Co., parent of NBC, declined 17 cents to $35.99.
Wage Increases
The studios and the writers began talking again after the studios negotiated a new contract with the Directors Guild of America. That agreement, announced on Jan. 17, also called for higher pay, including a share of revenue from streaming movies and TV shows on the Internet.
The writers have made the use of their work in new media a crucial issue, arguing the Internet and mobile devices will become an increasingly important means of distribution.
The directors won an overall wage increase of 3 percent for primetime shows and daytime serials, and 3.5 percent for all other programming.
“The studios were looking to reach an agreement with either the directors or actors first, before turning to address the writers’ demands,” said Jonathan Handel, an entertainment attorney in Los Angeles. He said he anticipates an agreement this week. “People are pretty optimistic.”
Ripple Effect
Writers have lost about $240 million in pay since walking off the job, Jack Kyser, chief economist for the private research firm Los Angeles County Economic Development Corp., said in January. The strike has idled about 11,000 film and TV workers and cost the local economy about $1.8 billion, he estimates.
The number of unemployed doesn’t include small businesses such as restaurants and suppliers that depend on the entertainment industry. The walkout has cost non-writer unionized workers, including stagehands, about $414 million, according to Kyser.
The strike also delayed work on at least six films, including Sony Corp.’s “Angels and Demons,” based on the book by Dan Brown, and Warner Bros.’ “Shantaram,” Wedbush Morgan Securities analyst William Kidd said in a report.
The WGA has reached interim agreements with several independent producers, including Lions Gate Entertainment Corp., United Artists and Weinstein Co., as part of a strategy to force major studios back to the bargaining table after talks broke down.
Other companies signing contract agreements included RKO Productions Inc., MRC, Spyglass Entertainment, Jackson Bites and Worldwide Pants Inc., David Letterman’s production company. new york times,plo
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