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President's Report
DGA President Jack Shea
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As the dust settles around the SAG/AFTRA commercials strike, everyone in the film and television industries must be aware of the potential for far more crippling actors' and writers' strikes next year.
The probability of strikes is significant. There are many economic issues, including television residuals for foreign and ancillary markets, that need to be addressed. Unfortunately, the WGA appears to be determined to focus its negotiations on its quixotic campaign to change the nature of movie production by manufacturing dubious new "rights" for
writers.
See related story
here.
Directors and writers should be natural allies. Directors above everyone value the contribution writers make to films. Moreover, we share an economic interest in the improvement of residuals formulas. But since the WGA has brought this attack on directors, the DGA will take all necessary actions to prevent the industry from making concessions on the issues of creative authority and possessory credit which will hurt the industry in general and the director in particular. At the same time the DGA encourages approaches to the issues which would actually increase respect for writers. And we hope that the industry negotiators can resolve the economic issues in a way that's fair and equitable to the members of the creative guilds.
In the meantime, the work of the DGA goes on. I'm pleased to announce the agreement we recently reached in our negotiations with the AICP on our own national contract for commercials. This new agreement has been unanimously endorsed by the Guild's negotiating committee and contains important new protections and benefits including internet coverage, new health and safety protections, improved wage rates and directors' creative rights. I want to thank our Eastern Executive Director, Christina Lomolino, and our members Lee Blaine, Steve Glanzrock, Stu Hagmann, Bob Karwoski, John Lowe, Vince Misiano, Neil Tardio, David Welch and the other members of the Guild's negotiating committee for their excellent work in obtaining these important new provisions.
And I am also happy to report that we have additional good news. As background, in 1990 the DGA and WGA signed an agreement with European companies. The purpose was to compensate U.S. right-holders for the private copying and rental of their work. Under that agreement, the Guilds' portion of revenues collected in European countries was 15%. In 1995 the Guilds' portion was increased to 20%.
Under a newly negotiated agreement, the Guilds obtained a five-year extension of the 1990 agreement and increased the Guilds' portion of the revenues to 33%. This new agreement is expected to generate additional millions of dollars a year in royalties.
Our National Executive Director, Jay D. Roth, spearheaded these negotiations. Also playing a crucial role in our obtaining this increase was Janine Lorente, the DGA's Executive in Charge of International Affairs. I want to thank both Jay and Janine for their outstanding work in achieving this success for us.
Finally, we're entering that season where we recognize those individuals who have performed exceptional work during the year and throughout their careers. Many of these individuals were able to realize their visions because of the freedoms provided to them through their creative rights. The consequence, their excellence in the craft of directing is undeniable.
Our awards season will be kicked off with the
DGA Honors in New York in December. This will be our second
Honors celebration. This year we're presenting the Filmmaker Award to legendary director Mike Nichols. Sydney Pollack will also be receiving the John Huston Award from the Artists Rights Foundation at our DGA Honors. Our National Honoree Award, the highest award the DGA presents to persons outside filmmaking, will be given to Sen. Edward M. Kennedy for his unceasing support of First Amendment issues and the National Endowment for the Arts. Labor leader Thomas C. Short, international President of IATSE will receive the Union Leadership Award. Frank Capra, Jr., President, EUE Screen Gems Studios, Wilmington, N.C. and Jeff Bewkes, Chairman & CEO of HBO will also be honored at the event.
And then, of course, we're entering the initial phase of the DGA Awards.
In closing, let me reiterate that the Guild staff continues to work diligently in order to ensure and protect our members' economic and creative rights. I look forward to sharing more successes with you very soon.
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