QR Code Business Card

Is TV Writers Income In Decline? Fact-Checking WGA Leaders’ Claims In Pre-Negotiations Manifesto!

February 17, 2017 (21:56) | 2016 | By: Arlin Miller

As negotiations between the WGA and the studios draw near, the drumbeat for a writers strike intensifies. As part of the union’s preparations for tough bargaining with the producers and a potential walkout, leaders of the WGA East and WGA West last week sent a letter to members, outlining top battleground issues including improving the union’s ailing health fund, getting paid family leave, raising compensation in new media, closing the pay gap between basic cable and broadcast, and loosening exclusivity clauses.

In the letter, union leaders painted a gloomy economic picture of corporate greed and worker exploitation to bolster support for their contract demands, claiming that while the operating profits of the six major media conglomerates have doubled to $49 billion in the past decade, the average incomes of their members “in both features and series TV have actually decreased over that same decade.”

As it turns out, that’s only half true. The WGA West’s annual reports show that while the average earnings of screenwriters have indeed declined steadily over the last 10 years, the average earnings of television writers have actually increased significantly during the same time frame, even adjusting for inflation.

WGA Talks

The guild’s records show that in 2015, the last year for which data is available (read the annual report here), 4,129 TV writers earned $803 million under the WGA West’s basic contract, for an average annual income of $194,478. Compare that to 10 years ago (read that report here), when 3,335 TV writers earned $454 million – for an average annual salary of $136,132 – and it’s clear that guild leaders are blowing smoke. A guild spokesman declined comment.

On average, TV writers made $48,936 more a year in 2015 than they did in 2006 – a 33.6% increase. Even adjusting for inflation, which comes to about 17% since 2006, they still took home some $40,000 more in real purchasing power than they did in 2006.

Even so, and despite a rapidly expanding marketplace for American TV shows, many TV writers are feeling pinched by shorter orders on episodic series. That’s especially hard for writing teams, which afford producers two writers for the price of one.

There’s no doubt, however, that guild leaders are right about the plight of Hollywood’s film writers, who have seen their wages steadily erode over the past two decades. According to the WGA West reports, they earned less in 2015 ($362.1 million) than they did in 1996 ($364.4 million) – and that’s in real dollars. Adjusted for inflation, they collectively earned about a third less in 2015 than they did in 1996.

That decline is reflected in their average annual earnings, as well. In 2005, there were 1,940 screenwriters who collectively earned $453.9 million under the WGA West’s contract – averaging $233,969, or $32,691 more than they’d average 10 years later.

Today, earnings from television are more than double those from film, but it wasn’t always so. For decades, writers’ earnings from film were always higher than those from television, but that changed in 1999. And it’s been the case every year since, except for the strike year of 2007, when producers scrambled to get their writers to turn in completed scripts and rewrites before the widely anticipated work stoppage over new media revenues. That strike year, ironically, saw a record $525.4 million in writers’ film earnings, and according to the guild, “Much of the increased work appears to be related to accelerated employment prior to the strike.”

REX/Shutterstock

The WGA is expected to begin negotiations for a new film and TV contract next month, and it remains to be seen whether strike fears will lead to the kind of “accelerated employment” that took place prior to the 100-day strike of 2007-2008.

If not, screenwriters’ earnings are expected to continue their slide, mostly because the major studios are turning out fewer films every year. The number of films rated by the MPAA’s Classification and Rating Administration have been in a steep decline in recent years. In 2006, there were 853 films rated, rising to 897 in 2008. Since then, however, the trend has been steadily downward, falling to just 613 in 2015 – or 285 fewer than in 2008. The same general trend can be seen in the number of films released each year by MPAA-member companies. In 2006, they released 296 films, and it’s been downhill ever since. In 2015, they released just 167 films – almost 45% fewer than in 2006.

Even so, writers’ “total earnings,” as the guild refers to all earnings other than residuals, have topped $1 billion in each of the last five years, and in 2015 exceeded those in 2010 by $187 million – an increase of nearly 19%.

Residuals, meanwhile, have been booming, increasing every year since 2009, giving WGA West members an additional $400 million in 2015 alone, bringing their true total earnings that year to over $1.5 billion. Most of the boom, however, has been in television and new media. TV residuals have increased 50% since 2010, and new media residuals by a whopping 896%. In 2015, new media residuals totaled $25.4 million, topping primetime network residuals by $6 million.

In some years, residuals account for a third of writers’ gross take-home pay, and in others, about a quarter, with residuals from TV shows continuing to outpace residuals from feature films. In 2015, TV residuals totaled $261.7 million, which was $123 million more than film residuals. And that year, screenwriters received $4 million less in residuals than they did in 2010.

If screenwriters’ earnings continue to plunge, the surest way to help stabilize their incomes would be to adjust the contract’s residuals formulae to give them a larger share of the reuse pie, but that would probably require some trade-offs.

WGA East's Michael Winship, left, and WGA West's Howard Rodman

WGA East’s Michael Winship, left, and WGA West’s Howard Rodman

REX/Shutterstock

One issue that’s certain to be a major bargaining issue next month is the dire condition of the WGA’s Health Fund. Widely considered to be the best – if not the best run – in the industry, the fund “has run deficits for all but one of the last four years, forcing a dip into long-untouched reserves,” guild leaders wrote in a letter to their members recently. This downturn, they said, is “due to rapid inflation in health care costs nationwide.” The letter was signed by WGA West president Howard Rodman, WGA East president Michael Winship, by the vice presidents and secretary-treasurers of both unions, and by the guild’s entire negotiating committee.

The WGA East doesn’t make its members’ earnings publicly available, and declined to do so when asked. The East gets only a fraction of the TV work, but the two guilds share the same sickly health plan. “As we approach negotiations for a 2017 Minimum Basic Agreement,” WGA East executive director Lowell Peterson reported to the guild’s council last May, “two things have become clear:

  1. The Producer-Writers Guild Health Fund’s expenditures are rising far more quickly than employer contributions, so we now face large operating deficits.
  2. The producers are making money hand over fist. $47 billion in television profits in 2014. Feature film box office receipts reached record levels in 2015 – more than $11 billion in the U.S. and Canada alone, with China and other overseas markets expanding even more rapidly.”

These two things taken together, he wrote, “suggest that we should insist on significantly increased employer contributions to the health fund during MBA negotiations next year. I think it is a safe bet that the AMPTP (the companies’ collective bargaining association) anticipates exactly that. But of course winning significant amounts at the bargaining table requires members to make real commitments to action away from the table. And we can anticipate that the companies will insist, as a condition of paying more, that the union trustees – appointed by the WGA East and by the WGA West – agree to cuts in benefits at the same time.”

The Health Fund’s latest financial statement for 2015 notes it paid out more than $130 million in claims that year, and that its net assets had fallen nearly $25 million from the beginning of the year to the end – from $196.3 million to $171.5 million. Currently, employers contribute 9% of covered earnings to fund the health plan, but barring drastic cuts, they’ll have to pay more to save it. And therein could lie the spark for a strike, because one sure way to get members riled up is for management to insist on rollbacks, especially from a union that considers itself under siege, whether it is or not.

In a communique with their members, the guild leaders also asked for their input on numerous other contract demands, including:

  • Increase minimum compensation in all areas
  • Increase residuals for undercompensated reuse markets
  • Expand types of made-for New Media programs subject to MBA minimums
  • Increase contributions to Pension Plan
  • Strengthen economic and workplace protections for television and new media writers employed and compensated on per episode basis
  • Strengthen regulation of options and exclusivity provisions in television and new media employment contracts
  • Address inequities in compensation of writing teams employed under term deals for television and new media series
  • Provide paid family leave for writers employed under term deals for television and new media series
  • Amend definition of a professional writer to include writing for new media
  • Increase funding for Showrunner Training Program and Tri-Guild Audit Program
  • Modify and expand all arbitrator panels
  • Modify requirements for work lists and other information submitted by companies

Few, if any, of those proposals, however, are likely to be strike issues, and the guild, as is the custom with pattern bargaining, is expected to be offered the same big boost in new media residuals the DGA recently received, but it will no doubt take some horse-trading to get it.

Comcast To Announce Third Quarter 2016 Earnings, Philadelphia, USA - 18 Oct 2015

REX/Shutterstock

As for the guild leaders’ claim that the six major companies – Comcast, Disney, 21st Century Fox, Time Warner, CBS Corp and Viacom – had operating profits of $49 billion? That’s actually true, but closer to $50 billion, according to SEC filings. But their collective operating profits are only up 79% from 2006, not the 100% that the guilds claim. And comparing the six media conglomerates to what they were a decade ago is also misleading. Ten years ago, for instance, Comcast was just a cable operator that didn’t own NBCUniversal, Bravo or the USA Network. Disney hadn’t yet bought Marvel Entertainment, and its operating profits include revenues from Disneyland, Disney Cruises and a whole host of ancillary businesses that don’t have anything to do with writers. And 10 years ago, Time Warner was still saddled with AOL – widely considered one of the worst mergers of all time – which it has since spun off, and Fox was News Corp, which included newspapers like the New York Post, which has since been spun off and didn’t have anything to do with the WGA or its members either.

The guild’s view of the industry’s massive profitability also doesn’t appear to have taken into account Paramount Pictures’ downturn or Sony Pictures’ $1 billion write-down last month on its movie operations.

The $49 billion “operating profits” figure cited by guild leaders isn’t really a true reflection of how well the companies are performing, either. Growing operating profits may simply mean that a company has gotten bigger — the way Comcast did when it bought NBCUniversal. Operating profits also don’t include big expenses such as debt payments and taxes, so in theory, a company could keep making deals that increase its operating profit line until it goes bankrupt.

A truer gauge of a company’s financial performance is its operating margin – a comparison of a company’s operating income to its revenues, which would also grow with acquisitions. And here the six major conglomerates, as a group, are also showing improvement – to a 23% margin from 18% 10 years ago, but nothing like the doubling of operating profits cited by guild leaders.

Individually, the biggest margin gains over the past decade are at Disney – to 26% from 19%, mostly reflecting growth at ESPN; at Fox – to 22% from 15% due to the strength of Fox News and getting rid of low-margin newspapers; and Time Warner – to 28% from 17% by getting rid of AOL and Time Inc.

Viacom

Associated Press

Viacom, on the other hand, has seen its operating margin drop to 20% from 24% due to sagging ratings at Nickelodeon and the near collapse of Paramount. CBS, which released its quarterly earnings Wednesday, saw a small drop in 20015 to 17% from 18% a decade ago.

Some WGA West leaders have been talking up the threat of a strike – if not a strike itself – since the guild’s officer and board elections in September 2015. David Goodman, who would go on to be elected vice president, urged members not to forget “how important the threat of a strike is in negotiations.”

And Aaron Mendelsohn, who was elected secretary-treasurer, told members that he believes in taking a “strong and pragmatic approach that utilizes the strike vote judiciously and only under certain circumstances, like when our sacred cows are threatened (health and pension, residuals, etc.), or if we need to stake a fair claim in a new delivery system or work area, or if rollbacks remain on the table.”

And Patric Verrone, who as president led the guild’s last strike, reminded members during his 2015 campaign for reelection to the board that “Leverage in collective bargaining is most effectively built through the careful development of a viable strike threat.”

Subscribe to Deadline Breaking News Alerts and keep your inbox happy

And the Beat goes on!

Arl

The Ol’ SAG Watchdog

*Photo Selected by Watchdog

 

Comments

comments

  SAG-AFTRA Los Angeles Headquarters Early Office Closure, Feb. 17!

February 17, 2017 (16:04) | 2016 | By: Arlin Miller

Following from SAG-AFTRA Website:
SAG-AFTRA Los Angeles Headquarters Early Office Closure, Feb. 17

Due to severe weather in the area, the SAG-AFTRA SAG-AFTRA Los Angeles Headquarters will be closed early today, Friday, Feb. 17. The building will be closed at 4 p.m.

We apologize for any inconvenience this may cause.

Locals:
Remember don’t drink and float!
Ol’ Arl
The SAG Watchdog
*Photo selected by Watchdog
Seriously have a safe weekend! 

Comments

comments

EEOC: Major Studios Failed To Hire Female Directors; Lawsuit Looms!

February 15, 2017 (23:18) | 2016 | By: Arlin Miller

EXCLUSIVE: The EEOC is in settlement talks with the major studios to resolve charges that they systemically discriminated against female directors. “Every one of the major studios has received a charge contending that they failed to hire women directors,” a knowledgeable source told Deadline.

The Equal Employment Opportunity Commission began investigating allegations of Hollywood’s discriminatory hiring practices against female directors in October 2015, but the investigation is over and has moved into the settlement phase. “The EEOC is attempting to resolve the charges but, if unable to, may file a lawsuit,” the source said.

EEOC Logo

The EEOC doesn’t comment on its investigations, and charges only are made public when it files a lawsuit, which the EEOC says is “typically a last resort.”

On its website, the EEOC states: “If a violation is found, we will attempt to reach a voluntary settlement with the employer. If we cannot reach a settlement, your case will be referred to our legal staff – or the Department of Justice in certain cases – who will decide whether or not the agency should file a lawsuit.”

As we reported Monday, the Directors Guild tried to get the studios to embrace a program similar to the NFL’s “Rooney Rule,” which was meant to encourage teams to consider candidates of color for top coaching positions.

During the DGA’s contract negotiations in December, the guild pressed the producers to adopt a similar rule that would have required producers to interview female and minority candidates as part of the hiring process for directing jobs. The companies, however, declined to discuss the proposal “for legal reasons.” Deadline has now confirmed that the “legal reasons” involved their settlement talks with the EEOC.

Subscribe to Deadline Breaking News Alerts and keep your inbox happy

Good Luck to  the Ladies!

Arl

The Ol’ SAG Watchdog

*Photo selected by Watchdog

Comments

comments

The Holiday of Love brings a non-traditional surprise for the union’s members!

February 14, 2017 (17:39) | 2016 | By: Arlin Miller

 AFTRA Launches New App for Members!

What should a union get its members for Valentine’s Day?

When flowers and chocolates just won’t cut it — especially when you have over 160,000 members — the safe choice is software. Hence SAG-AFTRA is deploying a specialized app exclusively for its members, the union announced Tuesday, with versions available for download from the Apple App Store and Google Play.

The app allows users to track residuals, keep tabs on local productions, read the latest news, get answers to key contract questions, snag special deals and add events directly to their calendars. The app can also dial directly into SAG-AFTRA headquarters if there is an on-set safety issue.

“The SAG-AFTRA app is hands-on information which is imperative in this digital age,” said union president Gabrielle Carteris. “National executive director David White … has championed the union’s technology advancements from the very start and this app marks another step forward in our digital evolution.”

Other elements of that evolution include a new residuals direct deposit program, the creation of a Member Contact Center, a revamped website and acquisition of IT equipment that slashed residuals processing times by 2/3 to under 30 days.

“Improving member service is a key component of our mission at SAG-AFTRA and is a focus I share with our leadership,” said White. “With new technologies like mobile apps, we can improve our responsiveness to members’ evolving needs while making member engagement with their union easier and more efficient.”

Multi-featured though the app may be, a union source confirmed that it won’t remind the user to say “I love you” to that special someone. For that you’re on your own, at least until version 2.0.

By the way Happy Valentine’s Day to all you Ladies out there!  Okay, okay   some of you cute guys too!  But, but, but…
Arl
The Ol’ SAG Watchdog
* Photo selected by Watchdog

Comments

comments

MTV Recognizes WGA East As Bargaining Rep For Digital News Staff!

February 14, 2017 (15:21) | 2016 | By: Arlin Miller

MTV News has become the latest digital news outlet to recognize the WGA East as the collective bargaining representative of its editorial staff. The guild has been on an organizing roll during the last 18 months, winning the right to represent the editorial staffs at the Huffington Post, Salon, Vice, Gizmodo Media Group, Fusion, the Root, and ThinkProgress.

“Unionizing with the WGA East gives the editorial employees at MTV News a strong voice on the job,” said Lowell Peterson, the guild’s executive director. “We look forward to working closely with them to negotiate a collective bargaining agreement that addresses their concerns and helps them build sustainable careers.”

MTV News unionizes with WGA East

MTV

MTV said in a statement: “We are committed to doing everything we can to cultivate a creative and supportive working environment at MTV News. Our employees are our top priority, and we welcome constructive discussions with them on this initiative.”

MTV’s decision to agree to work out a contract with WGAE less than two weeks after the guild announced that it had secured the support of MTV News’ digital editorial staff to be their collective bargaining representative. “There has never been a more critically important time in our lives to have the protections of a union, especially for those of us in media,” the MTV News Unionizing Committee said in a statement.

Subscribe to Deadline Breaking News Alerts and keep your inbox happy

This can only be seen as good news  Now how About the West of the union of news?

Arl

The Ol’ SAG Watchdog

Comments

comments