ACTORS ACTING ANGRY WEEKEND DISMISSAL CUES DIVISIVE UNION WAR.

Byline: Greg Hernandez Staff Writer

In the strongest signal yet that Hollywood's labor unions are ready to battle for a bigger cut of revenue from DVDs and other new technologies, the Screen Actors Guild's new board abruptly fired its top executive and started a search for a new leader who will take a tougher stance in negotiations with studios.

Despite deep divisions among SAG members, National Executive Director and CEO Greg Hessinger was sacked over the weekend at a stormy meeting. The action came just weeks after the newly elected leadership of the Writers Guild of America, West ousted its executive director, John McLean.

Members of both unions were incensed that negotiators failed to make any progress in getting a bigger percentage of DVD revenue for their members during contract negotiations with film and television producers last year.

``With both SAG and the Writers Guild, you had a faction that was very unhappy with the posture that the negotiating committee took in the last two sets of negotiations and, to some extent, this is payback for that,'' observed entertainment labor attorney Arnold Peter. ``It is also a wake-up call for the studios and the networks that the unions will be much more aggressive in the next set of negotiations.''

With many feature films now grossing more on DVD than they do in theaters, the residuals issue looms larger than ever before.

To the bitter disappointment of many union members, the studios successfully fought to keep the status quo on DVD residuals after claiming that box office alone no longer recoups production, distribution and marketing costs of a movie. The residual formula allows studios to exclude 80 percent of their revenues when calculating how much artists are owed.

SAG and WGA leadership is intent on not having history repeat itself, especially with DVD being such a cash cow for companies. They have also made clear this month that they expect fair compensation from movies and television shows downloaded on the new video iPod.

Newly elected SAG President Alan Rosenberg declined comment Monday on the Hessinger firing but said in a statement released Sunday that SAG's membership expects ``concrete results'' under its new leadership.

Hessinger also declined to comment Monday, his 40th birthday, but he made clear on Sunday that, if he was not paid for the 3 1/2 years remaining on his contract, he would take legal action.

``While the board may have the right to choose its own chief executive, that right does not include the ability to repudiate a legally binding contract entered into in good faith,'' he said in a prepared statement.

The decision to fire Hessinger went along party lines, with the Membership First majority prevailing in a split vote among the national board.

``I never wanted to hire (Hessinger),'' said board member Seymour Cassel. ``He worked for AFTRA, and they didn't make an effort in the contract negotiations, either him or (former SAG CEO) Bob Pisano. This guild is for the members; it's not for CEOs who undermine us.''

But dozens of members who were against the firing stormed out of a weekend meeting at the Miramar Hotel in Santa Monica.

``We were all blindsided by it,'' SAG's New York president, Paul Christie, said Monday. ``We were given no warning and not consulted on it at all. It was literally four to five minutes into (Rosenberg's) first meeting, and he pulled this out. All of his supporters knew but not anyone from outside was given any indication.''

Christie said the weekend's action is likely to further polarize the union's political factions.

``They like to bill themselves as militant and more aggressive; we see it more like acting out,'' he said. ``Their first impulsive, reckless act is to fire the head of the organization, and it is absurd. It is beyond frightening for everybody else. It's gotten to the point where that makes SAG look like the laughingstock of the entertainment industry.''

Former SAG President Melissa Gilbert, who completed her second two-year term in September, rushed to the hotel when she learned of Hessinger's firing.

``There is no honor from this leadership, no class, no integrity,'' Gilbert said Monday. ``It's very hard for all of us who are no longer there; there's a certain sense that everything was for naught. The political tides have turned. and they are taking themselves in directions that I think are self-destructive.''

Peter Frank, currently SAG's chief financial officer, was named interim national executive director. Rosenberg said a committee from among the national board had been created to conduct a search for a permanent replacement for Hessinger.

Hessinger had previously spent five years as CEO of SAG's sister union, the American Federation of Radio and Television Artists, and was hired earlier this year by a board led by Gilbert. He was brought in to replace Pisano, who had become a lightning rod for criticism among the Membership First members who had long sought to oust him.

While Pisano was paid out for the remainder of his contract, Hessinger was not offered the $1.6 million he would have earned during the remainder of his four-year contract.

``The irony here is that we are a labor union, and our responsibility is to enforce the contract to protect the members,'' Gilbert said. ``How can people look you in the eye and think that's what we are going to do if we are basically willing to pull the rug out from under our own employees?''

There have reportedly been differing legal opinions over whether the guild is legally bound to pay off Hessinger, but settlement talks are expected to take place, possibly this week.

``Any outstanding issues will be resolved between the guild's lawyers and Hessinger's representatives, and we're looking forward to these issues being resolved amicably,'' SAG spokesman Seth Oster said Monday.

Sources said Rosenberg and other members of SAG's board were especially unhappy with three major hires made by Hessinger without board approval. Those hires - Rebecca Rhine, John Russum and JoAnne Kessler - were also fired Sunday.

``The three hires were brilliant hires from everyone else's view,'' Christie said. ``The sheer arrogance and recklessness of this has divided the union in a way that might be irreparable.''

Cassel strongly disagrees.

``I think it will strengthen the union,'' he said. ``It's about actors helping actors, and hopefully everyone will see that as we go along.''

Hessinger had also favored merging SAG with AFTRA, an unpopular stance among the current elected leadership but something that was championed by Gilbert and her supporters.

In his statement, Rosenberg said the decision was made after ``much consideration and debate'' but believes the change will help the union focus its resources on collective bargaining and organizing efforts nationwide.

``We have great respect for Greg and are grateful to him for his service to the guild,'' Rosenberg said. ``We wish him well.''

Greg Hernandez, [phone]

greg.hernandez(at)dailynews.com

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3 photos

Photo:

(1 -- color) ROSENBERG

(2 -- color) HESSINGER

(3 -- color) GILBERT