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Negotiations Continue Between Writers and Studios

Three hours past the 12.01 am contract expiration date on Wednesday May 2, 2001, negotiations between the Writers Guild of America (WGA) and the Alliance of Motion Picture and Television Producers (AMPTP) continued. Along with a pay raise, the 11,500-member WGA demands greater compensation, including residuals for international and cable syndication and when their writing is sold via DVD, the Internet, and home video sales. Producers and studio claim they cannot meet WGA's demand for an average annual raise of three percent over three years, because it would lead other unions in the film industry to demand similar raises. While both parties are working towards a settlement, a writers' strike is a possibility if the negotiations reach an impasse. A walkout would greatly impact the Los Angeles economy and the tens of thousands of Southern Californians employed by the television and film industry. According to a recent study by the city of Los Angeles, the long term cost of a strike could be as much as $6.9 billion. Even the threat of a strike has caused movie studios to delay and cancel productions, causing business slowdowns in all facets of movie production, from catering to make-up design.
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Date Issued
Date of Scout Publication
May 3rd, 2001
Date Of Record Creation
April 7th, 2003 at 3:26pm
Date Of Record Release
April 7th, 2003 at 3:26pm
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