Labor Management
December 20, 2009
Final Paper
Introduction
The AMPTP is the primary trade association with respect to labor issues in the motion picture and television industry. As the entertainment industry’s official collective bargaining representative, the AMPTP is responsible for negotiating with virtually all the industry’s guilds and unions, including the American Federation of Musicians (AFM); American Federation of Television and Radio Artists (AFTRA); Directors Guild of America (DGA); International Alliance of Theatrical Stage Employees (IATSE); International Brotherhood of Electrical Workers (IBEW); Laborers Local 724; Screen Actors Guild (SAG); Teamsters Local 399; and Writers Guild of America (WGA) (amptp.org).
On November 5, 2007 the Writer’s Guild of America East and the Writer’s Guild of America West initiated a strike against the Alliance of Motion Picture and Television Producers (Cieply, 2007). The strike lasted 100 days and ended on February 12, 2008. The strike put the economy in Los Angeles under severe strain with losses estimated as high as $2.1 billion. The strike resulted from the regular renegotiation of standard contracts, or the Minimum Basic Agreement with the AMPTP. According to contract proposals from the Writers Guild of America (WGA), issues arose between the WGA and the AMPTP over DVD residuals, union jurisdiction of animation and reality program writers, and compensation for digital technology called “new media” (WGA Contract 2007 Proposals).
Issues Behind the Strike
There were three major issues contributed to the strike between the WGA and the AMPTP. The first of these issues is was DVD residuals. Twenty years ago, VHS tapes were the dominant media for the home viewer market. When the industry standards for compensation were developed for this media, production costs for VHS tapes were high and the market for these tapes was practically non-existent. The agreement gave writers 0.3% of the $1 million
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