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CNN Saturday Morning News

Hollywood Writers, Producers Reach Tentative Agreement

Aired May 05, 2001 - 08:00   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.
KYRA PHILLIPS, CNN ANCHOR: Well, they write the sitcom scripts and the movie screenplays, but the most important thing Hollywood writers have to their writing credits to date is a new three year contract.

MILES O'BRIEN, CNN ANCHOR: It's not official yet, but it seems fairly certain the members of the Writers Guild will accept the deal, which means the show will, in fact, go on.

Casey Wian of CNN Financial News takes up the story from there.

(BEGIN VIDEOTAPE)

CASEY WIAN, CNN CORRESPONDENT (voice-over): It was a happy ending to a story that for most of the past year looked as if it would end badly. The Screen Writers Guild reached a tentative agreement with television and film producers on a new three year contract, averting what could have been the most costly strike in entertainment industry history.

MICHAEL MAHERN, WRITERS GUILD OF AMERICA: In all, writers have gained $41 million over the three year term of this contract and over $90 million by the sixth year, the best economic package that the Writers Guild has achieved since 1977.

WIAN: It's an economic package that could ultimately cost studios $200 million to $400 million, because the writers' contract is expected to become a benchmark for other union deals. But it's only about 40 percent of the raise writers originally asked for.

NICHOLAS COUNTER, AMPTP: Yeah, this is one of the most difficult negotiations we've had in many years because of the complexity of the issues facing the industry today, both for writers and for producers and our member companies. We have worked long and hard to achieve this deal.

WIAN: Other gains for writers include full residual payments from the Fox Network, which was allowed to pay lower rates in its early years, higher fees for international residuals plus a percentage of the profits and greater creative input. Negotiations on how to compensate writers for material appearing on the Internet will continue.

The contract now goes before 11,500 Writers Guild members for a vote. Approval will set the stage for negotiations to begin between producers and actors later this month. Their contract expires June 30. Los Angeles Mayor Richard Reardon, who publicly pressured both sides to reach a deal, says a cloud has been lifted from the Los Angeles economy.

Casey Wian, CNN Financial News, Los Angeles.

(END VIDEOTAPE)

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