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In Strike, Separate Deals Draw Ire of Big Producers

  • 01-07-2008
LOS ANGELES — A deal between United Artists and the Writers Guild of America West to let the production company sidestep the screenwriters’ strike may have opened the door to a full-blown brawl, as other producers demanded to know why writers have granted some companies a special agreement but not others.þþDick Clark Productions, which produces the Golden Globes ceremony for the Hollywood Foreign Press Association, has been trying for weeks to reach a similar deal but has been rebuffed. That is presumably because a free pass for Dick Clark would provide NBC, which is scheduled to show the Globes on Sunday, to bring in advertising revenue and promote movies like “Charlie Wilson’s War” for its sister company, Universal.þþAlan M. Brunswick, an entertainment labor lawyer with Manatt, Phelps & Phillips, said the guild risks violating federal labor law if it refuses to deal with companies on an equal basis.þþ“If they’re willing to sign the same deal and the guild won’t give them the time of day, I think that raises an issue,” Mr. Brunswick said.þþMr. Brunswick said he represented several companies that were interested in pursuing independent agreements, but was not involved with Dick Clark, United Artists or World Wide Pants, the production company owned by David Letterman that secured its own agreement with the guild on Dec. 28. þþThe next step for a company that believes it is not being treated fairly will probably be to file an unfair labor practices charge against the guild with the National Labor Relations Board, Mr. Brunswick said.þþAnthony R. Segall, general counsel for the West Coast guild, said the union was prepared to meet its bargaining obligation under the law. But, he said, “We have every right to take into account our strategic concerns and objectives” in determining how to deal with each company.þþMr. Segall said the guild intended to focus on major players and “competitors of the biggest companies,” to get the big studios and television producers back to the bargaining table. þþIn a phone interview on Sunday, Mr. Segall also acknowledged that the agreement with World Wide Pants contained provisions that would allow it to be superseded by any deal reached with bigger companies. The arrangement with World Wide Pants allows a producer to sign an interim deal without risk of accepting worse terms than competitors would ultimately enjoy.þþOn Sunday, the frantic behind-the-scenes wrangling over the Globes continued. Jeff Zucker, the chief executive of NBC Universal, convened a conference call on Sunday to explore ways of salvaging the Golden Globes, according to people briefed on the matter. One conceivable situation might involve producing a completely staged show around film clips, and perhaps without an audience or stars.þþAmong the people on the call were Marc Graboff and Ben Silverman, the co-chairmen of NBC Entertainment, leaders of the Hollywood Foreign Press, and Dick Clark executives.þþDick Clark Productions declined to comment on its legal options. “It is apparent that we are being treated differently from similarly situated production companies,” the company said on Friday.þþWriters, who have been on strike for two months, cheered the impending deal with United Artists, which is controlled by Tom Cruise and Paula Wagner, the company’s chief executive. þþ“This gives the union membership something to get excited about,” said Daniel Cornfield, a labor expert at Vanderbilt University in Nashville. “From the union’s perspective, that is a critical gain in and of itself.”þþThe agreement, still unsigned as of Sunday afternoon but close to being final, is part of a union strategy to sign deals with smaller production companies to improve its leverage. “Is what I’m doing right now a touchdown dance? Yes, I believe it is,” wrote one writer on an industry blog.þþBut an analysis of the deal suggests the writers may be gaining less than they think.þþIndeed, an agreement with United Artists would not alter the balance of power in the strike. More than 100 production companies signed interim agreements with the union during the last strike to little effect, and United Artists, despite the spotlight Mr. Cruise brings, is a small player. The company is set up to make only four to six movies a year.þþMoreover, the writers could be undermining their position by seeking agreements with independent producers because it would allow the big studios to use the fleet of smaller independent producers as processing factories. In the fluid world of Hollywood, where companies often collaborate, a studio could team up with independents, positioning itself to withstand a longer strike. þþThe guild is also in discussions with the Weinstein Company and has been in contact with Lionsgate, according to people briefed on the matter who were granted anonymity because the negotiations were private. These people say the Weinstein Company is “strongly considering” a deal. A Weinstein Company spokesman and a Lionsgate representative declined to comment.þþThe United Artists deal took shape over the last week despite pressure from the shareholder Metro-Goldwyn-Mayer to abandon the talks. Although MGM would benefit from a United Artists agreement, the company does not want to be seen as a weak link among the large producers in battling the union.þþUnited Artists has been dealt a particularly tough blow by the strike. The company’s first film, “Lions for Lambs,” failed at the box office and Ms. Wagner would like to jump-start other projects left in limbo. þþPersonal relationships may have played a role in the ability of United Artists to forge an agreement. Jeff Kleeman, the executive vice president of production at United Artists, ran for a seat on the union’s board last year. Although his bid was unsuccessful, Mr. Kleeman was backed by several powerful writers, among them John Wells, the former president of the guild. Mr. Kleeman could not be reached for comment.þþ

Source: NY Times