Inside the WGA-ATA meeting that led to a reprieve in agency battle – Variety



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A series of phone calls and e-mails and a crucial SMS led to Saturday's stealth meeting between WGA representatives and talented agency executives.

The four-hour session at WGA West ended with a six-day agreement to implement the new rules governing agents representing the 15,000 members of the guild. The parties are expected to meet again Monday or Tuesday in the same framework in small groups that Saturday has a more constructive dialogue than that which had been obtained in formal negotiation sessions with larger groups, according to several sources.

David Young, Executive Director of WGA West, said Variety On Sunday, the discussion had enough substance to justify giving the Association of Talent Agents a little more negotiation time.

"We had a good conversation and we did not have much," Young said. "We thought we were going to try it for a few days."

A large number of spectators and writers have sent a final message to WGA West President David Goodman, urging him to find a solution to the stalemate that threatens WGA members to fire agents who do not would not accept the new rules of the WGA Code of Conduct. At the same time, the talented agents were inundated with messages from writers expressing their dissatisfaction with the situation and promising to become customers once the dust settled.

"Customers were saying," Yes, I signed the WGA letter and yes, I voted yes for the code of conduct but I do not want to fire you, so why can not you solve that? " problem, "said one seasoned agent.

Late last week, UTA Co-Chair Jay Sures sent a message to Goodman, inviting him to meet a small group of representatives. Goodman sent the request to Young, who called Sures. This conversation culminated in a rally agreement Saturday, a few hours before the midnight expiry of the guild franchise contract.

The WGA had promised to implement its new code at 12:01 on Sunday. No meeting between the two sides lasted more than a week before Friday night, when Goodman made contact with Sures, lead negotiator alongside Ari Greenburg and Rick Wen of WME and Bryan Lough of CAA. An agreement was reached to meet at approximately 11:00 am Central Time at WGA West headquarters on Saturday, with no more than four out of five representatives on both sides.

Young said the dynamics with the smaller group was probably a contributing factor to help break the ice.

"I have seen situations where all the conversations you need can have all the conversations you need," he said. "Sometimes you have to be in a room with fewer people. It's a question of truth. "

The WGA was represented by Young, screenwriters David Shore and Mike Schur and screenwriter Michelle Mulroney. Shore is one of three co-chairs of the WGA Bargaining Committee on the ATA Contract.

Executive leaders Karen Stuart, Sures, Rosen, Heavy and Jim Gosnell of APA, President of ATA, were appointed.

The aim of the guild is to prohibit the long-standing practice in the industry of asking talent agencies to collect packaging taxes from TV shows and movies, stating that production agencies are paying for a conflict. inherent interest instead of being remunerated on commission. The WGA and Association of Talent Agents are focusing on packaging and other issues in negotiations that really kicked off in February. The parties were trying to find a successor to the guild franchise contract, which had not been changed since 1976.

Sources close to the situation described the meeting as "civil" and "cordial" and, more importantly, productive. The goal was to discuss the most explosive problems rather than trying to reach a formal agreement. In previous meetings, sources said Young spoke most often on the WGA side, but on Saturday there was more talk among all parties at the table. Shore and Schur have been described as particularly articulate on issues.

The main points of disagreement between the guild and ATA are about the cost of packaging – a decades-old industry practice that has been termed illegal and immoral by the guild – and on the expansion parent companies of the largest agencies in production. The ATA party has gone further than in the past in recognizing that there has been abuse with packaging. Last year, a growing number of complaints from WGA members drew the guild's attention to the need to revise its franchise agreement. Agencies maintain that packaging is a boon to customers because they waive the standard 10% commission for all customers (beyond the authors) on a project when the agency receives a packaging fee.

Young would not comment on the details of the discussion any more than he would say what it would take for the WGA to reach an agreement with the ATA.

"They have been denying since the first day that there was a problem," he said. "Yesterday was the first day they admitted that there was a problem. That's why it was a good conversation from my point of view. Whether you are heard or not, it matters. "

Young said the ball was in the ATA camp to present proposals to address the guild's conflict of interest concerns over packaging and production.

"It's not a question of high morality," he said. "We made proposals. We know where we are. We will see if we see something that addresses these concerns. "

It is no secret that many prominent members of the WGA are lobbying the guild to find a way to find a solution that does not involve a massive exodus of clients from leading agencies. It is feared that this disruption will disrupt the smooth running of the business at a time when television and film companies are changing.

Young downplayed the suggestion that pressure from members pushed the WGA to act on Saturday. He added that it had previously been requested that small group meetings with members of the WGA Negotiating Committee do not include it – a point disputed by ATA sources.

"There are always nervous people. It's a conflict situation, "said Young. "I hear members every day from all angles, as is David Goodman. He does not get a lot of pressure. He was not pressured to extend the deadline. This is not the reason the meeting took place. They finally agreed to meet on acceptable terms. "

Another issue that has been the subject of much discussion has been the pressure from the WGA for agencies to hand over to the guild all contracts of author clients and financial information. ATA representatives responded that they would only do so if this information was approved by each client. The WGA argues that contracts should be canceled regardless of their status as guilds overseeing the writers' employment standards.

Young said that one of the big problems with the serial packaging process is that it has become "a complete black box for my limbs".

Young said WGA's application for contracts and employment data was intended to better monitor the relationship between studios and screenwriters, as well as monitor the behavior of agents in their role as advocates for WGA members. He introduced it as a guild issue to fulfill his oversight responsibility. According to agency sources, customers expressed distrust of a comprehensive agreement to send financial data to the guild.

The ATA had previously committed to providing packaging customers with "choice and transparency" to packaging clients and working with affiliated production entities. Obviously this is not enough according to Young.

"The starting point of any honest relationship is the clarity of what's going on," Young said. "The idea that agencies can just hide all their money and that they're so successful has become a target for IPOs and venture capital – my members do not know how it's going and it's not not correct. The final issues of this negotiation are closely related. If you do not have this information, the agencies could suggest new ways to get paid by the studios and we would not know. "

While the meeting had been taking place for four hours, the ATA was proposing to the guild to delay the code for a week to allow the parties to keep talking. ATA members were convinced that they were not inclined to negotiate if the code was already in effect.

The WGA responded that any delay should be approved by a vote of its 25 bargaining committee members, some of whom were running out of money Sunday for the break holidays and other business. At the end of the day, the committee voted unanimously to approve the extension.

A few hours after the end of the meeting, the WGA sent an email to members around 9:30 pm, confirming the delay of the PT members. Sources said the ATA had been warned a few minutes before sending the message to members. Many agencies were moved by the WGA's description of the meeting and by the statement that "for the first time, agencies have recognized the extent of the problem caused by their behavior".

But the WGA message has also left the door open to the ATA "to present us with proposals to address these issues and reach a settlement." official guild communications.

Young has a well-established strategy of using a stopwatch as a lever in difficult contract negotiations. Now, the big question is whether there was enough momentum created on Saturday to bring the parties to a workable compromise by Friday.

"If only we had this kind of conversation four months ago, we could have already had an agreement," said a source from the agency.

Young said he felt that Saturday's guild positions had been somewhat respectful in previous discussions.

"If you are trying to settle an extremely serious complaint during a negotiation and that the response of your interlocutor is:" You are confused "or" You do not understand how the company works ", to l & # 39; before. That's where we are right now – maybe. We will see."

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