FILM PRODUCERS, WRITERS FAR APART.

Byline: Greg Hernandez Staff Writer

Contract talks between the Writers Guild of America and the Alliance of Motion Picture and Television Producers deteriorated Wednesday with the guild deeming a proposed three-year agreement unacceptable and the alliance calling it a final offer.

WGA west President Donald Petrie called for a continuation of talks even as the two sides remained at loggerheads over such issues as health care and DVD residuals. Petrie said the economic well-being of the WGA's membership and of the entire industry is at stake in these negotiations.

``With this is 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,'' he said. ``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.''

The issue of compensation for DVDs and home video is thought to be the most complicated matter. Guild members have made it clear that they want a bigger share of profits from what is a booming DVD industry.

``With regard to DVDs and the Internet, we feel it is crucial for the current and future health of the industry that we maintain the status quo in these areas,'' said Nick Counter, president of the producers' alliance. ``In an era of escalating costs, when box office revenue no longer covers expenditures, DVDs have become a primary revenue source for feature films. Further burdening a film's revenue stream without, at the very least, recouping production, distribution and marketing costs is simply fiscally irresponsible.''

Counter said the alliance's proposed three-year contract, presented Tuesday, provides substantial increases in several areas, including health fund contributions, minimum rates, excerpt payments, made-for-video sequels to feature films and made-for-pay television residuals.

Petrie complained that the producers refuse to pay their fair share and that, for example, members accepted $42 million in benefit reductions in order to keep their health plan afloat.

Counter provided a different take Wednesday.

``Although the health care industry is in crisis, this proposal ensures that the WGA's industry-leading health care plan will be able to be maintained without any diminution in benefits,'' he said.

The WGA had called for a one-year agreement similar to the one signed by the Screen Actors Guild earlier this year in order to avoid a labor strike. The WGA membership has not taken a vote whether to authorize a strike. The last time writers walked out was in 1988, and that strike lasted for more than five months.

In 2001, a contract agreement came three days after the previous one expired. Movie studios had already stockpiled product in anticipation of a strike by either writers or actors. At that time, neither DVD residuals nor the booming reality-TV genre were major topics of contention.

Greg Hernandez, [phone]

greg.hernandez(at)dailynews.com