Los Angeles, June 2, 2004 -- On Tuesday, June 1st, the AMPTP companies, ABC, CBS, and NBC made a final offer that the Negotiating Committee for the Writers Guild of America, west and East, finds unacceptable. The major issues separating us involve the health fund, guild jurisdiction, and residuals for DVDs and Internet sales. The Negotiating Committee will continue to seek a fair agreement for writers. The AMPTP has indicated it will be commencing negotiations with other unions.

Daniel Petrie Jr., president, WGAw, issued the following statement:

"The response of the companies and the networks to our reasonable demands has so far been inadequate and unacceptable on every issue of concern. But that doesn't mean we should simply walk away from the table. The fact is, the economic well-being not only of our membership but also of the entire industry is at stake in these negotiations. With this in mind, our message to our members and the industry is: the Writers Guild of America, west and East intends to continue these talks as long as it takes to reach a fair agreement. We urge the companies to make the same commitment.

"At the same time, there should be no mistaking how far apart we and the companies are. As it currently stands, their so-called final offer for a three-year contract is unacceptable.

"On the issue of health coverage, the companies continue to refuse to pay their fair share. In order to keep the health plan afloat, our members and their families accepted $42 million in benefit reductions over the past year, and as many as 500 participants may lose their health coverage entirely by the end of this year. Instead of offering to share this burden equally, the companies propose increasing their contribution by only an additional half-percent in the first two years of the contract -- which amounts to less than a third of what we've sacrificed. It's time for these mega-conglomerate companies to step up and be responsible. We owe it to our writers and their families to ensure there are no further cuts in health benefits.

"The companies have been equally unresponsive on any of the other major issues. Internet video sales represent the future of our industry -- yet the companies refuse to accept the same formula that is the standard for not only Internet rentals but also all other percentage-based residuals other than DVDs.

"As for DVDs and videocassettes, the current formula is based on a 20-year-old business model that is both outdated and unfair. Yet the companies refuse to offer any increase.

"In addition, we cannot accept that writers who work for HBO -- the most successful network in the country -- should be willing to accept an increase in residuals that amounts to less than $9 a week.

"Nor can we accept the companies' refusal even to discuss the issue of extending guild jurisdiction to cover writers who work in the television industry's most successful new genre, reality programming.

"Given the amount of work that remains to be done to bridge these differences, we are particularly disappointed that the companies and networks have not accepted our proposal for a one-year contract, which was modeled on the SAG agreement in order to make it easy for them to accept it. We feel it is the companies' obligation to the entire industry to continue talks for either a three-year or a one-year contract."

Herb Sargent, president, WGA, East, issued the following statement:

"We have based our demands on the economics of the entertainment industry. Our members have contributed to the growth and success of this multi-billion dollar market. They deserve nothing less than an agreement that appropriately responds to their concerns on healthcare, DVDs, and new technologies. The AMPTP's current proposal fails to do so. We are hopeful the negotiations continue in the spirit of good faith."

Source: WGA