Weekly television digest (Jan-Dec 1960)

10 MAY 16, 1960 Film & Tape DIRECTORS SIGN CONTRACT; Signing of a contract between the Directors Guild of America and the Alliance of Television Film Producers and Assn, of Motion Picture Producers highlighted last week’s strike & labor activities in Hollywood. But there was no easing of the 17-week-old WGA strike against TV film. The DGA deal came as no surprise. The Guild had made it clear weeks ago it would not make an issue of foreign residuals in TV or post-1948 movie payments. The directors took a pension fund in lieu of the post-1948s (as did Screen Actors Guild) and avoided the delicate TV foreign residuals with a “favored nations” clause giving DGA foreign reruns if any other guild gets them. In the Alliance-AMPP negotiations with SAG, the producer groups rejected SAG’s principal demands, particularly for the so-called “one world concept” in foreign reruns of TV film. Counter-proposals are being weighed by SAG & though both sides are far apart, no strike’s planned. The only optimism in an otherwise gloomy week was delivered by the DGA settlement. Here’s a guild-by-guild rundown of the situation, leading off with WGA, whose strike has proved the most troublesome problem confronting producers: WGA: The Guild negotiating committee told nonAlliance independents either to sign, offer counter-proposals by 10 A.M. this Mon. (16), or face a strike. They asked for 10% increase in minimums the first 2 years, 5% the second 2 years, and 2% of the foreign gross. Significant feature of these proposals was that WGA was skipping a pension demand in favor of foreign residuals. There was a varied reaction among producers we checked in this group. Some considered the demand for foreign revenue “improper,” because few producers get into the black with first runs. In terming the demand unrealistic, they said they would be willing to offer WGA 2% of the net — i.c., payment after production costs have been recouped. Other executives told us they were willing to sign on any deal similar to the industry pattern ultimately achieved. While there was resistance to the foreign demands, there appeared to be a genuine effort to come up with counterproposals for settlement. Said one executive: “The terrible part of this is that we do not have industry leadership nor men in the industry concerned about its future. There is a vacuum at the top & chaos at the bottom.” But there was even more chaos within WGA, where an internal fight was paralyzing negotiations with groups outside the non-Alliance independents. Dissidents who had failed to get the Alliance proposal accepted at the last membership meeting were campaigning to get their candidates elected to the TV-radio board at Thursday’s membership meeting, in the belief that these new leaders could then discharge the present negotiating committee and name one which would accept the Alliance bid. There was even a split within the dissident ranks, as Rod Serling left that group in favor of WGA’s holdout for a percentage of foreign residuals. Serling, who had spoken in behalf of the Alliance offer and for the dissidents at the membership meeting, told us bitterly: “Many of us were blatantly used . . . The membership should hold sway. I’m not in sympathy with the dissidents. I was confused about the strike when I spoke for the Alliance offer. I don’t want to get nailed to the cross for something I’m not sure 1 believe in. I personally think we’re awfully close to a settlement. If 2% of the foreign gross is to be the formula, my production company will pay it. It isn’t going to break anybody.” Serling also told us the dissidents had tried to persuade him to join them in a move to leave WGA and form another guild, but he rejected this outright. Producers, aware of the internal fight, told us they had been assured the dissidents would win. Consequently they were awaiting this development before proceeding with negotiations. What was difficult to assess was the actual numerical strength of the dissidents. Regardless of the merits of their case, it was obvious that they had handicapped the negotiating committee’s work. A heated verbal duel between the 2 factions was anticipated at the Thurs. meeting. On the outcome of this session depends the length of the strike. Opponents of the dissidents were bitterly charging that they were “circumventing the will of the membership, as expressed in the recent vote.” Meanwhile, AMPP offered a package plan to WGA for settlement of the 17-week-old strike against the major movie studios. WGA negotiators were cool to the plan, but told AMPP they would present it to a membership meeting for a vote Mon. (May 16). • DGA: Highlights of the DGA pact with AMPP and the Alliance are: A pension plan based on payments by producers of an amount equal to 5% of directors’ salaries on movies, with a ceiling of $100,000 per director per picture; for TV films, payments to equal 5% of initial amount of director’s salary, with a ceiling of double the initial minimum; for asst, directors, producers to contribute 5% of total salaries. Directors will contribute to pension plan an additional 2%% in each category; to establish pension fund, producers will pay 1%% of directors’ and asst, directors’ salaries for period from Oct. 1, 1953, through Dec. 31, 1959, less amount which producers have contributed to present industry plan on behalf of directors & assts. This amount — about $360,000 — ^will be paid in 10 annual instalments. Directors’ minimums increased from $600 to $650 a week first 2 years of contract, to $675 a week for remaining 2 years; minimums for first & 2nd asst, directors to be hiked 10% first 2 years, another 5% remaining 2 years. If post-1960 movies are sold to free TV, producers will pay 2% of gross after deducting 40% for distribution (this proviso is for a 6-year-period). Directors waive claims to pre-1960 movies sold to TV. Directors agree with AMPP that pay TV is same as theatrical exhibition. Existing structure is continued on TV film rerun payments, but joint economic study committee is to be named to study entire TV reruns subject. • SAG: AMPP and the Alliance rejected SAG’s demands to raise residuals structure from 140% of minimum to 200%; the “one world concept” on foreign residuals; extension of present residuals from 6th run to 8th run, with hikes in residuals for various runs. Instead, producers made counter-proposals which were roughly comparable to the Alliance offer to WGA — the 10-5-5 format which gives actors a 10% hike in minimums the first 2 years, 5% the 2nd 2 years and a 5% pension plan. On the pension plan, SAG was offered 5% of salary, up to double minimum. Regarding SAG demands to raise minimums in various categories, producers turned them down and countered with raises, but not the kind SAG sought. For example, on rates for a single picture daily