The End of the Current Round of SAG Negotiations

On Friday, May 2nd, the AMPTP agreed to extend our talks with SAG on a day-to-day basis through today, as long as the parties were making progress.   We therefore regret to report that insufficient progress has been made to extend negotiations for a third time.  Indeed, the negotiations were thrust into reverse by SAG’s persistent refusal to acknowledge that the three deals already struck with the writers, directors and AFTRA reflect the economic realities faced by everyone in our industry, including actors.  In particular, significant differences remain on DVD residuals, streaming, made for new media, and new media use of clips and library material.  Under these circumstances, with SAG’s continued adherence to unreasonable demands in both new and traditional media, continuing negotiations at this time does not make sense.   We will begin scheduled negotiations with AFTRA on Wednesday, May 7th and have offered to resume negotiations with SAG at a future date.

Over the course of 18 days of negotiations, both parties made compromises and concessions.   Unfortunately, SAG’s negotiators continued to insist on some of the Guild’s most unreasonable demands in both traditional and new media areas.  As a result, it was not possible to reach the same kind of agreement that the Producers have already reached with the WGA, the DGA and the AFTRA Network Code.

Even though this round of negotiations has ended without an agreement, we hope that these three weeks of work have helped lay the groundwork for an agreement that can eventually be reached prior to the June 30, 2008 expiration of the current SAG-AMPTP contract. 

Of course, in the aftermath of such an intense negotiating period, statements of disappointment are to be expected.  As you consider these statements, it is worth keeping in mind the following key points:

• Our industry was not starting from scratch with this round of SAG negotiations.  On the contrary, over the last three months three separate labor agreements have been reached with our industry’s writers and directors, and in the AFTRA Network Code negotiations.  During these negotiations, AMPTP made many compromises from our initial demands to reach these three new labor agreements. 

• SAG actively participated in the WGA strike, witnessing first hand the difficulties all parties had in reaching a deal on complex new media issues.  In addition to observing the WGA talks, SAG also had observers in the AFTRA Network Code negotiations.

• Despite the existence of these recent three agreements, and despite SAG’s direct experience with the WGA strike and the AFTRA Network Code negotiations, SAG negotiators came to this newest round of negotiations with more than 36 major new proposals – and more than a few of those were deal-breakers. 

• The AMPTP negotiators took the opposite approach, introducing a modest package of just eight narrowly-tailored proposals. 

• From the very start of these negotiations, then, SAG refused to respect the sound basis for the writer, director and AFTRA Network Code labor agreements, while the AMPTP consistently urged SAG to recognize and build upon the framework of those agreements.

• In the end, this round of SAG negotiations ended without an agreement because SAG simply refused to recognize the fundamental business and labor principles that have already been accepted by directors, writers and producers.