The settlement reached last week between the Writers Guild of America (WGA) and the Alliance of Motion Picture & Television Producers (AMPTP) is welcome news for the spot community (see page one story). The WGA pact clearly improves prospects that the AMPTP and the Screen Actors Guild (SAG) will be able to work out their differences at the negotiating table in the coming weeks, hopefully resulting in a new contract on that labor front.
There’s been trepidation throughout commercialmaking ranks that any strike action against the feature/TV studios would at the very least compromise the fall TV season (SHOOT, 4/13, p. 1), causing advertisers to pull back on original spot production. That could have a potentially devastating impact on a market that has already been adversely affected by a slowed-down economy. And, as contended in this column last week, a strike or strikes could have nipped in the bud what now appears to be a movement on Capitol Hill to address the runaway production issue via reform legislation.
In fact, word is that Rep. Bill Thomas (R-Calif.), chairman of the House Ways and Means Committee, is seeking tax-relief means to help combat runaway filming. Though he’s not enamored with the wage tax credit proposal being bandied about, Thomas is reportedly open to supporting other creative approaches to make the U.S. more competitive with foreign countries in the global competition for spot and longform lensing.
Thomas’ willingness to explore different options represents a 180-degree turn from his predecessor at the helm of the House Ways and Means Committee, Rep Bill Archer (R-Texas), who perennially expressed his philosophical opposition to tax credits.
The good news on the Hollywood labor front may also spur continued efforts by individual states to tackle the runaway problem. This is year one of the Film California First program, which offers reimbursement of certain film-related costs incurred by qualified production companies when lensing on local, state or federal public property in California (SHOOT, 1/26, p. 1). And New York State appears well on its way to creating an anti-runaway fund of some $10 million over the next three years (SHOOT, 4/13, p. 1).
Additionally, Rep. Anthony Weiner (D-N.Y.) is in the process of drafting a federal anti-runway measure that would offer a tax credit incentive to shoot in the U.S. Backers of Weiner’s bill hope to convince Thomas that a tax credit can prove to be an effective runaway remedy.
But much damage has already been done. Last year’s six-month actors’ strike against the advertising industry prompted scores of spot projects to shoot in Canada and overseas. And the negative impact figures to be long lasting because during that strike assorted advertisers discovered the foreign filming option to be attractive, both from creative and cost-savings perspectives.
Ironically, prior to that strike, SAG had invested heavily in a campaign and research to combat runaway production. Now, with the benefit of 20-20 hindsight—and more than $100 million in lost wages during its strike against the ad industry—SAG hopefully won’t be setting up picket lines again this year.
While some would argue that the runaway horse has already bolted out of the barn, the aforementioned momentum being gained legislatively at least represents a step in the right direction. But even if progressive legislation comes to pass, it might not be enough. Perhaps in light of events over just the past year, labor and management can find it within themselves to work cooperatively on ways for the U.S. to keep and attract more business.
