Producers Drop Residuals Plan in Labor Talks

Oct 16, 2007  •  Post A Comment

The Alliance of Motion Picture & Television Producers has withdrawn its residual restructuring request from the bargaining table, taking a step toward resolving a contract negotiation with the Writers Guild of America.
The restructuring hinged on writers not receiving residual payments until after a production recouped its losses, a proposal that drew heavy criticism from the WGA.
“In the overriding interest of keeping the industry working and removing what has become an emotional impediment and excuse by the WGA not to bargain, the AMPTP withdrew its recoupment proposal,” AMPTP president Nick Counter said.
However, the AMPTP was holding fast to its denial of the WGA’s request to increase home movie residuals, from four cents on every $15 DVD to eight cents.
In response, a statement released by the WGA negotiating committee said it welcomed the AMPTP’s request removal.
“Moving forward, we have extremely important issues to deal with, including new media, home video, jurisdiction and enforcement. By maintaining our resolve, we will come out of these negotiations with a good contract that not only benefits writers, but the entire entertainment industry and the communities that depend on it,” the WGA statement said.
The WGA’s contract is set to expire Oct. 31.

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