Dear DGA members:
I'm pleased to report to you that the DGA has successfully concluded its negotiations with the Alliance of Motion Picture and Television Producers (AMPTP) for the 2002 Basic Agreement (BA) and Freelance Live and Tape Television Agreement (FLTTA).
Gil Cates, the chair of the Guild's Negotiating Committee, and Martha Coolidge, co-chair of our Creative Rights Committee, reported the terms of the new three-year collective bargaining agreements to the DGA's National Board of Directors on Saturday, December 15, 2001. The Negotiating Committee was unanimous in its support of the agreements, and the Board also voted unanimously to recommend that members vote YES for ratification of the agreement.
The agreements contain significant improvements that will protect Guild jobs and earnings. I urge you to read the enclosed summary of the new contract and send your YES vote today in the enclosed return envelope.
Among the significant gains made for Guild members in these negotiations was in the area of residual payments. We were able to secure increases in all residual base rates, including network primetime and made for basic cable. We also achieved full network status for Fox Broadcasting in the third year of the new contracts, and negotiated the first increase in foreign residuals in over thirty years.
As a major part of our negotiations, the DGA and AMPTP also agreed to an historic Interim Settlement Agreement that adapts our existing agreements to the new technologies that are modernizing the method of television production. This new "blended contract" agreement recognizes that the methods of recording television programming are changing, and will extend the advantageous terms of the Basic Agreement (BA) to all prime time videotape and digital productions, including TV movies and one-hour dramas. The Interim Settlement Agreement also extends a beneficial approach to multi-camera shows. Had we not reached this agreement, it is entirely possible that all shows shot on digital video could have ended up being covered by the less advantageous economic and creative terms of our Freelance Live and Tape Television Agreement (FLTTA).
Because it is so vital that we have an agreement that covers all methods of production, we actually began preliminary negotiations with the AMPTP on the blended contract in June. What we were able to achieve will ensure the economic security of DGA members and will provide budgetary certainty to producers as 21st century technology continues to evolve. This was a difficult and complex issue that was resolved with what history will show will be a true 'win-win' result for the DGA and the producers.
The interim settlement is a necessary—and tremendous—first step towards officially codifying a new blended contract. Because we want the interim agreement to be in place before the advent of next spring's pilot season, the AMPTP agreed that this portion of the contract would be effective immediately upon ratification by the DGA membership, rather than on July 1, 2002, when the new BA and FLTTA go into effect. Your National Board voted unanimously to shorten the member ratification period from 45 days to 20 days, to ensure that the interim settlement agreement would be implemented before pilot season.
Among the other highlights of the new agreements are:
- WAGE INCREASES:Minimum salaries and residual base rates will increase by 3.5% per annum in each year of the Agreements, except for Directors' initial minimums for network prime time programs (including residuals base rates) and daytime serials, which will increase by 3.0% per annum in each year of the Agreements.
- FOX BROADCASTING: In the third year of the contract, Fox Broadcasting Corporation will be considered a network for all purposes, and will pay 100% of the residuals for programs broadcast on ABC, CBS or NBC.
- MADE FOR BASIC CABLE RESIDUALS: The improved residual schedule for programming made for basic cable will generate more money faster for directors by increasing residuals for runs 2-5 by 40%.
- THEATRICAL SEQUEL PAYMENTS: The Director of a theatrical motion picture based on an original script will receive a payment of $20,000 if a sequel is produced, utilizing the same characters, etc. This is the first time such a concept has been achieved in a DGA agreement.
- FOREIGN RESIDUALS FOR TELEVISION PROGRAMMING: A fourth level of foreign residual payments has been added. Prior to this agreement, there were three levels: an initial residual payment and two additional payments to be made when certain Distributor's Foreign Gross amounts were met.
The fourth level of residual payments added by the 2002 contract extends into perpetuity, and consists of 1.2% of the Distributor's Foreign Gross in excess of a certain amount based upon the length of the program. - RUNAWAY PRODUCTION: No later than January 1, 2003, the AMPTP will convene a meeting with Employer representatives and representatives of the DGA, SAG, WGA, IATSE and Teamsters, AFTRA and other affected unions to discuss the problems of "runaway production" and ways of resolving or mitigating these problems, including possible contractual remedies.
- CREATIVE RIGHTS: For the first time, the DGA was able to achieve Basic Agreement creative rights for all prime time dramatic productions regardless of the medium on which they are shot, including digital and videotape productions. Prior to this, any prime time dramatic shows that were shot on videotape were covered under the FLTTA, which does not provide for basic creative rights such as a minimum prep period and cutting time. Additionally, a primary issue in the creative rights discussions involved the industry-wide problem of late script delivery in television, which impacts production costs and the ability of TV directors to do their jobs. The Guild and the AMPTP agreed on a process to address this situation, including a system under which Employers will provide information to enable the DGA to monitor the timeliness of script delivery. The AMPTP and DGA also agreed to an arbitration to determine the appropriate relief for late script delivery.
The Negotiating Committees and the Guild's National Board unanimously—and enthusiastically—recommend that you VOTE YES for ratification of the agreements.
IMPORTANT NOTES:
If you have any questions about the new agreements, please call the Guild offices.
Best wishes,
Jack Shea
PRESIDENT
