Representatives of the Directors Guild of America and Hollywood`s major studios will come head to head Thursday for their first round of negotiations for the DGA contract that expires June 30.
The outlook for an easy resolution of their differences isn`t bright.
”They`re asking for severe rollbacks of things we`ve had for many years,”
reports DGA president Gil Cates. ”If they`re serious, the situation is bleak.”
Nick Counter, president of management`s Alliance of Motion Pictures & Television Producers, says his organization seriously feels ”our industry has gone through a number of changes that mandate the re-examination of issues determined years ago.” Counter`s talking about the monies generated by sale of films to pay TV, videocassettes, etc.
”Times have changed,” he says. ”When we originally agreed to share gross profits from supplemental markets with the DGA, companies were recovering the cost of pictures from the theatrical release–so any other revenues were a bonus. But now most movies don`t go into profits during theatrical release.”
Studios and production companies have been rushing projects through shooting with the aim of stockpiling product in the event of a DGA strike. However, the strike, if it comes, still is expected to have a crippling effect on Hollywood.
Says Cates, ”I don`t want to go down as the first Guild president who leads the directors into a strike in 50 years, but I don`t want us to have to give back those things we fought so hard to achieve.”
Cates adds, ”I find it amazing that the Alliance is asking for drastic rollbacks at a time when most of its members are doing fantastic business. I guess they`re just greedy.”
The Alliance is composed of Hollywood`s major studios and the three TV networks. And while the DGA gears up for bargaining with that formidable force, it`s also negotiating ”with any independents who want to negotiate with us. So far we`ve signed new contracts with about 200 small independent companies.”
