Encino, CA – October. 16, 2007 – “In the overriding interest of keeping the industry working and removing what has become an emotional impediment and excuse by the WGA not to bargain, the AMPTP withdrew its recoupment proposal,” J. Nicholas Counter III, President, Alliance of Motion Picture and Television Producers (AMPTP) announced today.
“By taking the recoupment formula off the table, we haven’t solved the problems that the formula was designed to ameliorate. But, as we have said repeatedly, we are committed to making a deal that is fair and reasonable.
“Upon removing the recoupment issue, we made it patently clear that the Producers will not agree to increase residual payments for videocassette/DVD use (including electronic sell-through), for reruns on The CW or My Network TV, or for programs made for pay television or basic cable.
“We now expect the WGA leadership to get down to the business at hand and do what it takes to reach a new labor agreement.”
----- Remarks to the WGA today by Nick Counter -----
Since negotiations recessed at your request last Thursday, we have spent a considerable amount of time reviewing where we stand in these negotiations. It is no exaggeration to say that the parties have made no progress. In fact, there has been almost no discourse or dialog between us except with respect to your proposals.
Today, we are taking action to change the dynamics of this negotiation. We are removing from the table a proposal that, from your perspective, has been a major obstacle to reaching an agreement with us. Today, we announce the withdrawal of our proposal #1, “Residual Payment Point.”
We do this not because of any inherent lack of merit to the proposal. To the contrary, the changing economics of an industry confronted by rapid and still-evolving technological change, shifts in audience taste and viewing habits, and the emergence of competitors in new media whose cost structure bears no resemblance to our own warrant the continued pursuit of this proposal.
We do this because we have concluded that we will be unable to reach an agreement with you if we continue to pursue a recoupment initiative. From the beginning, our overriding goal has been to reach an agreement with you, a fair and reasonable accord that will stabilize the industry and serve as the framework for a cooperative labor-management relationship.
We do this because the responsibility to the working men and women in our industry and the community at large compels us to soberly assess and judiciously balance bargaining goals against the consequences of failing to reach an agreement. We continue to believe that the measures we proposed would invigorate our industry, give us the flexibility to compete successfully in an environment changed by technology and consumer demand, and expand employment opportunities. But we are aware that insistence on these recoupment objectives is a major obstacle to reaching agreement.
Let no one misconstrue today’s action. While the Producers will not insist on our recoupment proposal as a condition of reaching an agreement with you, we will NOT increase residual payments for videocassette and DVD use, including electronic downloads. We will likewise not increase residual payments for programs rerun on The CW or My Network TV, or for programs made for pay television or basic cable.
The responsibility rests with you on how we proceed from here. We expect you to modify your positions in a manner and magnitude that signals to us and the larger community your willingness to reach an agreement with us.