1. Siena Heights University
WGA 2007 – 2008 Strike
Shannon Barker
Siena Heights University
LDR 655
Professor Wallace

2. Who is the WGA? Writer’s Guild of America
Labor organization
Two regional locations:
East – New York, NY
West – Hollywood, CA
Majority of members are writers
Television
Animation
Work is viewable in a variety of formats
Traditional: television & theater
New Media: Internet, video games, CD’s, & DVD’s
The Writers’ Guild of America (WGA) is a labor organization divided into two regional locations: the East location is in New York, NY and the West is in Hollywood, CA.
The majority of writers for movies, television, and animation are members of the WGA.
Their work is viewable in a variety of formats from traditional theater and television to other forms including what the 20th century began to call “new media.” New Media consists of the internet, video games, CD’s, and DVD’s

3. Who is the AMPTP? Alliance of Motion Picture and Television Producers
Located in California
Entertainment industry's official collective bargaining representative
Negotiates 80 industry-wide collective bargaining agreements
Over 350 members
Movie & television producers
Studios
Broadcast & Cable networks
Independent producers
The AMPTP, the entertainment industry's official collective bargaining representative, negotiates 80 industry-wide collective bargaining agreements on behalf of over 350 motion picture and television producers (member companies include the production entities of the studios, broadcast networks, certain cable networks and independent producers).

4. WGA “Pattern of Demands”
Initial compensation and residuals for writing for the internet and other non-traditional media
Increased initial compensation in all areas
Increased minimums and residuals for The CW network
Increased home video (DVD and videocassette) residual payments
Expanded coverage of reality programs and animation
Address product integration
Every three years the WGA negotiates contract terms with the Alliance of Motion Picture and Television Producers (AMPTP)
Representatives of both sides began negotiations on July 16, 2007 to discuss key issues in the WGA “Pattern of Demands”
These demands were quoted by the AMPTP as being “short-sighted and self-destructive” causing the negotiations to be put on hold until both sides were no longer “hostile”

5. The Cost of New Media
The bulk of the debate rests on new media due to the growth in popularity.
Table’s one and two (below) provides increased projected revenues for digital media, and for comparable numbers for physical versus digital downloads of new media. The numbers includes digital streaming, movie/TV downloads, video on demand, music from the internet and downloaded onto phones, online advertising, online video games, and electronic books.

6. Looking Back to 1988
Strike between WGA & AMPTP lasted 21 weeks & 6 days
Costing the industry $500 million
Major focus: compensation for work viewed through advanced technology
Networks replaced television with reruns
Focused on reality shows: “Cops”
The strike between the WGA and AMPTP lasted for 21 weeks and 6 days, costing the industry $500 million. In reflection, the 1988 strike was similar to the 2007 strike regarding increased compensation for ways of viewing their work due to new advances in technology. The WGA also requested to be paid for reruns that were broadcasted overseas, which they did not win.
During the strike of 1988, news magazines, such as “48 Hours” on CBS had increased the number of viewers. Reality show “Cops” premiered on Fox and remained on the air as one of the longest running reality shows on television.

7. Cost of 2007 – 2008 Strike Primary shows affected
ABC: Desperate Housewives, Grey’s Anatomy, Ugly Betty, Boston Legal
NBC: The Office, 30 Rock, Law & Order, My Name is Earl, ER
CBS: Two and a Half Men, How I Met Your Mother, The Big Bang Theory, NCIS, CSI
Fox: Back to You, Bones, 24, House
CW: Gossip Girl, Smallville, One Tree Hill, Super Natural
HBO: In Treatment, Entourage, True Blood
Showtime: Weeds, Dexter,
Small list of shows affected by the strike.
Networks then began to turn towards reality shows because they do not require scripts. Fox held the highest ratings due to American Idol and The Moment of Truth reality programs. After the strike was over, only a few shows returned to finish their season, while many others put off production until the start of the next season.

8. Trickledown Effect Thousands of production workers affected:
Caterers, camera operators, makeup artists
Service industry that served entertainment industry:
Catering companies, hotels
Cancellation of Golden Globe Awards
Loss of $70 - $80 million
Affecting: hotel staff, dress makers, limousine drivers, ushers
Companies lost valuable advertising time
$2.8 billion in lost output through the end of 2008!
The strike had an impact on those working behind the scenes. Thousands of production workers: grips, caterers, camera operators, makeup artist, and many more were all out of work during the strike .
The service industry that served the entertainment industry was disrupted as well. This included catering companies and hotels. Various other trades saw the negative affect such as allied industries, professional and business services, retail trade, finance, insurance, health care, even construction.
When the event is cancelled, it puts people out of work. Caterers, staff, dress makers, limousine drivers, ushers, and so on.
When rooms in a hotel are cancelled, wait staff hours will be cut causing a loss in wages and tips. Even companies that would normally advertise during the Golden Globes would lose valuable advertising time, ultimately losing business.

9. Trickledown Effect Continued…
A glance at the effect on employment by industry type shows the non-manufacturing sector suffering a decline
of 14,000 jobs in the first quarter of It is not surprising that employment in the information, leisure, and
hospitality industry shows a major impact (7,500 lost jobs in first quarter of 2008, followed by 5,000 lost jobs in
the second quarter of 2008).

10. Professional and business services are expected to lose around $183
Professional and business services are expected to lose around $183.8 million in wages and salaries in the
first quarter of 2008, followed by $147.3 million in the second quarter. Trade, transportation, and utility wages
and salaries come in next, with $113.1 million and $56.4 million worth of losses in first and second quarters
of 2008, respectively. Financial activities lose $98.5 million and $106.5 million in wages and salaries in the first
two quarters of 2008, respectively. Construction and mining suffers $13 million in losses in the first quarter and
further decline by $55.2 million in the second quarter of Education and health services will suffer $9.1
million of lost wages and salaries in the first quarter of 2008.

11. Minimum Basic Agreement (MBA)
WGA obtained jurisdiction over new media
When written by professional writer
Program is covered by the MBA
Production budget is above: $15,000 per minute, $300,000 per program, or $500,000 per series order
Higher residuals for new media.
2% & 3% for streaming of their work online
Compensations for downloads
Doubles when over 100,000 units sold

12. MBA Continued…
Payments for streaming on the internet will start 17 – 24 days after premiering online.
They also gave up the demand for a higher share of revenue from DVD’s.
They did not receive “jurisdiction over reality television or full jurisdiction over prime time animation
Before the final settlement, the WGA removed their proposal on DVD residuals and concentrated instead on the issues involving new media and jurisdiction over reality shows and animations.
Under the new agreement, electronic sell-through residuals on new media are paid at 0.36 percent of the distributor’s gross receipts for the first 100,000 downloads of a television program and the first 50,000 downloads of a feature. After those benchmarks have been reached, residuals will be paid at 0.7 percent of the distributor’s gross receipts for television programs and 0.65 percent for feature films. For rentals, residuals are paid at the rate of 1.2 percent of the distributor’s gross receipts.
Nevertheless, the overall agreement comes close to what the writers proposed, since securing a share of new media was their top priority.

13. Conclusion
Both writers and producers suffered substantial loss of income due to the strike. The union’s members did not believe they obtained the best deal possible, but did agree that the new contract was an improvement.
The WGA did not quickly gain money back from the time they were off for the strike however it did set a standard for the future. Broadband and video-on-demand is continuing to gain in popularity, creating more revenue in these sectors, thus the writers’ will be awarded as well.
The Writers’ Strike was a labor dispute that can be comparable to other industries outside of Hollywood. It is similar to unions that many Americans are a part of. Production studios are comparable to “big business.” When money is made, it should be distributed amongst the employees who gave effort to its creation. This is where terms of contract negotiations will take place. When negotiations fail, the union workers will then turn to strikes, creating a ripple effect… touching the lives many others, including the economy.