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CNN Saturday Morning News

Hollywood Writers, Producers Sign Contract

Aired May 05, 2001 - 07:00   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
MILES O'BRIEN, CNN ANCHOR: We begin in California, where it is still dark at this hour, but the lights, cameras, and action will still be on in Hollywood after negotiators for writers announced a groundbreaking contract with producers. The tentative deal averts a strike that would have darkened the sets and virtually shut down TV shows and the movie industry.

CNN's Thelma Gutierrez has more.

(BEGIN VIDEOTAPE)

THELMA GUTIERREZ, CNN CORRESPONDENT (voice-over): After four months, more than 100 hours of tense, round-the-clock negotiations, and a news blackout, a tentative agreement was sealed with a handshake in front of cameras. Representatives on both sides, the Writers Guild of America, and the Alliance of Television and Motion Picture Producers, made the long-awaited announcement.

MICHAEL MAHERN, WRITERS GUILD OF AMERICA: People told us that it couldn't be done even if we stayed on strike for a year or more. Today we are announcing an agreement that includes groundbreaking improvements, and it has been accomplished without a strike.

NICK COUNTER, PRODUCERS ALLIANCE: This was one of the most difficult negotiations we've been -- we've had in many years because of the complexity of the issues facing the industry today, both for writers and for producers.

GUTIERREZ: The tentative agreement amounts to $41 million over three years. This is how some of the key money issues break down. Writers will get a 3.5 percent base pay raise. There will be a 20 percent increase in basic cable residuals, and a $5,000-per-script fee for movies released on DVD and videocassette.

They can also expect a pay increase for reruns that air internationally.

MAHERN: The best economic package that the Writers Guild has achieved since 1977.

GUTIERREZ: During the talks, Los Angeles Mayor Richard Riordan had urged both sides to reach an agreement and avoid a strike. From his vacation in Acapulco, Mexico, he congratulated both sides. MAYOR RICHARD RIORDAN, LOS ANGELES: I'm ecstatic. I think this is wonderful news for the writers and studios, but particularly for all the people of Los Angeles.

UNIDENTIFIED MALE: Ready, set, and background.

UNIDENTIFIED MALE: And action.

GUTIERREZ: Now that WGA negotiations have wrapped, actors are hoping to break the same ground when the Screen Actors Guild heads to the bargaining table later this month to hammer out some of their demands with the same alliance of producers.

(on camera): Even though a tentative agreement is on the table, it's now up to the negotiating committee to present a proposal to the board of the Writers Guild. Then it's up to the 11,000 members to vote to ratify the contract.

Thelma Gutierrez, CNN, Los Angeles.

(END VIDEOTAPE)

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