UA-WGA deal is derided by the AMPTP as a 'sideshow'

United Artists Entertainment has become the first movie company to sign a deal with the Writers Guild of America, enabling the start-up outfit controlled by Tom Cruise and his longtime producing partner Paula Wagner to hire union writers during the strike.

While details about the independent agreement were not released, it is believed to be similar to the deal that the guild recently struck with David Letterman's production company, Worldwide Pants Inc. Both agreements contain proposals that the union sought in its negotiations with the major studios, including in the key area of Internet residuals.

In its joint announcement today, the WGA, West, and UA said the "comprehensive agreement addresses the issues important to writers, including new media."

In response, the Alliance of Motion Picture and Television Producers released the following statement in response to the UA agreement: "One-off deals do nothing to bring the WGA closer to a permanent solution for working writers. These interim agreements are sideshows and mean only that
some writers will be employed at the same time other writers will be picketing. In the end, until the people in charge at WGA decide to focus on the main event rather than these sideshows, the economic harm being caused by the strike will continue."

Since the studios broke off talks with the WGA in early December, the guild has been attempting to sign up independent companies as a way to put pressure on the majors to return to the bargaining table.

The guild has been in talks with other independent companies, including the Weinstein Co. and Lionsgate, about pursuing similar deals. The strike by WGA's 10,500 writers is now in its second month.

The deal allowing UA to hire union writers to work on their film projects does not extend to the company's largest shareholder and distributor, Metro-Goldwyn-Mayer Studios Inc. MGM, one of the major studio members of the AMPTP, does not plan to break ranks with its counterparts in the alliance and sign an interim deal with the guild. "Metro-Goldwyn-Mayer Studios Inc. understands the desire of United Artists to resume its business activities, but respectfully disagrees with its decision to sign an interim agreement with the WGA. MGM remains committed to working with AMPTP member companies to reach a fair and reasonable agreement with the WGA that positions everyone in our industry for success in a rapidly changing marketplace," the studio said in a statement.

MGM Chairman and Chief Executive Harry Sloan had attempted to talk Wagner and Cruise out of the interim agreement but to no avail. As CEO, Wagner has the right to make all final decisions with regards to UA's operations.

In November 2006, Sloan recruited Wagner and Cruise to resurrect UA as an autonomously run, artist-friendly movie operation that would feed MGM four to six releases a year. The partners' debut movie, "Lions for Lambs," in which Cruise starred with director Robert Redford and Meryl Streep, was a box office flop last fall. Cruise and Wagner own 35% of UA, while MGM and its equity partners control the majority shares.

More news on the strike

-- Claudia Eller

Comments

[The One True b!X]

"...until the people in charge at WGA decide to focus on the main event..."

Of course, it was the AMPTP that walked out of "the main event" of negotiations with the Guild. Everyone, of course, knows this. And yet the AMPTP continues to try making such statements with a straight face.

[ReelBusy]

RE: the AMPTP statement calling the UA/WGA deal a "sideshow". It's a show that go on unlike any that the AMPTP members have.

WGA members will work for the smart people who are willing to deal in good faith. Right now those people would be Paula Wagner, Tom Cruise and David Letterman and no one else...because everyone else doesn't have the skill, vision or ability to make a deal happen.

Nick Counter is making every mogul in this town look like a inept used car salesman that can't close the deal. Sad really that such highly touted dealmakers can't actually make a deal. The Emperors have no clothes and now everyone knows it.

My strike prediction is that every studio will have a new leader inside of 24 months after this work action is over. Boards Of Directors will demand it after this amateur hour handling of such valuable properties.

[sc buckman]

How about the rest of us? As a "below-the-line" family back here in NJ there seems to be little regard for the rest of the industry and struggling to pay their bills. Soooo self centered. All of you...writers and producers.

http://hhangel.wordpress.com/2008/01/07/so-will-the-writers-share-their-with-the-rest-of-us/

[reason and accountability]

The writers are unbelievably selfish. To put themselves and their contrary agenda over an entire industry is beyond greedy and short sighted. All of the people who worked hard this past year deserve to be celebrated and now in addition to many people who work in the industry have not only lost their jobs and homes because of the strong arm tactics of the WGA, but now their opportunity to be rewarded for a job well done is being stolen. And where is the voice of reason to bring the two sides together to not undermine one of the last remaining economic exports of this country. Not only have we farmed out everything from childrens toys to technology help overseas but now the truly American industry of film and television which is unmatched anywhere else in the world is essentially being shutdown by the WGA. Well I guess if the writers don't get their precious 3% they are willing to take the industry down with them for as long as they can. This is a clear example of why unions have officially become an arcaic and disfunctional drain on the economy. In the industrial revolution when people were working for 20 hours, in poor conditions for 50 cents there was a need for some arbitration, but in a free market economy these union bullies just bleed the system dry with the union bosses making money on the basis of a "group think" mentality which does nothing but weaken the working relations of the industry they suppose to support.