Hollywood Strike Threat Looms

Monday, January 22nd 2001, 12:00 am

By: News On 6

LOS ANGELES (AP) â€” Talks aimed at preventing a walkout by Hollywood screenwriters began Monday, with some of the biggest studios sending their top executives to the opening session in a gesture of cooperation.

Many in Hollywood have expressed fear that negotiations with the Writers Guild of America â€” and, later, the Screen Actors Guild â€” will end in an industrywide summer shutdown.

``We're here today to show respect for the writers and respect for the process, a process that for the last 12 years has resulted in labor peace in Los Angeles, not labor conflict,'' said Barry M. Meyer, Warner Bros. chief executive.

Disney President Robert Iger, who also attended the talks, described the opening statements as ``incredibly cordial'' and said they reflected commitment to reach a deal.

WGA representatives are negotiating with the Alliance of Motion Picture & Television Producers, which represents the major studios and independent companies. The WGA contract expires May 1.

Contracts with the Screen Actors Guild and the American Federation of Radio & Television Artists â€” which represent 135,000 actors â€” expire two months later.

A walkout by any of the guilds could disrupt the fall television season and stall movie production. The loss to the industry and Los Angeles County businesses that rely on it could reach $457 million a week, according to the county Economic Development Corporation.

``Suddenly we are at the precipice,'' Monday's issue of Variety warned â€” the first time the trade paper has put an editorial on its front page in its 86-year history.

Tough talk by the unions and last year's rancorous six-month walkout by TV and radio commercial actors are fueling strike fears.

The WGA is seeking changes in residual payment formulas for cable programs, for the reuse of TV shows and movies on videocassettes and DVDs, and for shows distributed overseas.

Writers currently receive 4 cents for every VHS tape or DVD produced, a figure set when videotapes were introduced and production costs were high. The WGA wants an additional 4 cents per tape or disc.

``It's time to share that with the artist,'' WGA spokeswoman Cheryl Rhoden said.

Studio executives have claimed that the WGA proposals, if applied to the upcoming actors' and directors' contracts, would cost up to $2.4 billion over three years. The WGA disputes that, saying the three-year cost for all the guilds would amount to a cumulative $725 million.

More than money is at stake for the 11,000 guild writers. They are butting heads with directors as well as studios in demanding ``creative rights'' that would give them more power during production.

The WGA also is seeking elimination of the so-called possessory credit for film directors, the ``A film by ...'' designation that writers contend minimizes their importance to a project.