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UPDATE with WGA and ATA responses: Verve signed the WGA's new Code of Conduct, the biggest victory ever in the guild's "divide and conquer" campaign. Verve is not a member of the Association of Talent Agents, but its signature makes it the largest agency specializing in code signing to date.
It also allows hundreds of Verve customers who fired their agents last month to return to the agency; at last count, over 7,000 writers fired their agents who refused to sign. The signature announced on Thursday also paved the way for other mid-level agencies. Sources said that several medium-sized agencies were in talks with the guild, including at least one member of the ATA.
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Verve in talks with WGA to sign a code of conduct
The WGA said tonight that she was "pleased" with Verve's signature, even though she must be ecstatic. "We are delighted to sign today an agreement with Verve," he said in a statement. "Verve has agreed to put its clients first, to respect its fiduciary obligations and to respect the law. This is a good deal for writers and their agents. We look forward to reaching an agreement with other agencies as soon as possible. "
Verve's signature makes the 70th agency the code's signature, of which only one, Pantheon, is a member of the ATA. Nevertheless, it is only a fraction of the 234 agencies franchised by the guild before the implementation of its new code. So far, the other 112 ATA member agencies – including the four big packaging agencies – have refused to sign.
"The WGA leadership has put writers and agents in an untenable position," ATA said in a statement after the Verve News announcement. "It is disappointing but not surprising that some of the most vulnerable agencies may be reluctantly forced to sign an expensive agreement. Although Verve is not a member agency of ATA, their decision to sign the WGA code will ultimately hurt their business and the artists they represent on many levels. It has been 30 days since the agencies provided many counter-proposals to the guild bargaining committee, and we are still waiting for their response or their return to the bargaining table. "
By signing the code, Verve partners informed their staff on Thursday that they will not sign any new clients "who request temporary representation and intend to return to his previous agency when an agreement is reached. concluded between the WGA and the ATA ".
In a statement to staff, Verve partners said, "In 2010, Verve established itself as an agency in which the interests of customers are the top priority. Today, we affirm this commitment by signing the WGA Code of Conduct. As a result of our constructive dialogue with our customers and their elected officers, Verve has decided that this course of action is in the best interest of our customers and our company.
"While today's decision imposes changes to our business practices, we are committed to providing long-term, high-quality service to our customers.
"Verve provides a personalized experience for each customer and we refuse to dilute our efforts. As a result, we will not support writers who request temporary representation and who intend to return to their previous agency when an agreement is reached between the WGA and the ATA.
"We are proud that our agency continues to chart its own path, but we are even happier to see the spotlight return to its place – on our creators.
"A note of gratitude to you, our teammates. You have shown resilience and compassion in these difficult times, giving us incredible faith in our collective ability to shine in the future. "
The declaration was signed by partners Bill Weinstein, Adam Levine, Bryan Besser, Amy Retzinger, Adam Weinstein and David Boxerbaum.
The partners also told staff that "outside of packaging, business would remain relatively unchanged" by signing the code.
"We do not have an affiliated production company and we have never taken any outside investment in our agency. The code requires our agency to share more documentation with the WGA than in the past. Much of the code is focused on transparency. We are already proud of the transparency in our communications with our colleagues, our customers and the community. "
By signing the code, they also stated that they accepted "the two most critical components: no television packaging and no production owned by a subsidiary. Modifications have been made to clarify the intentions of some terms that are too confused or too general. The requirements for sharing documents with WGA have been adjusted to reflect our business practices. We also agreed on a "most favored nations" clause – regardless of the final agreement between WGA-ATA and Verve, Verve will abide by these rules. "
At the same time, David Gersh, co-chairman of The Gersh Agency, denied rumors that his company could be signed soon. "The agency has not engaged any conversations with the WGA and continues to be represented by the ATA," he told Deadline. Sources said the agency would not sign the code in its current composition.
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