WGA TALKS RECESS 1 WEEK 2 SIDES FAR APART ON TERMS OF PACT.

Byline: Greg Hernandez Staff Writer

Still far apart on terms of a new three-year contract, the Writers Guild of America and the Alliance of Motion Picture and Television Producers on Wednesday agreed to a one-week recess in negotiations. They return to the bargaining table May 12.

Calling the current proposal from producers and television networks ``simply unacceptable,'' the WGA has 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.

``We believe that our members and the entertainment industry are best served if we continue our efforts to reach an agreement that keeps the town working,`` said Daniel Petrie Jr., president of WGA west.

But AMPTP President Nick Counter said a one-year agreement is not an option that is on the table and that a multiyear agreement would provide more industry stability.

``Our last proposal to them was for a three-year agreement so the parties are apart on those terms,'' Counter said. ``We are apart on the other issues but are prepared to negotiate them out.''

The decision to take a one-week break was made in order to give the WGA a chance to meet with its full membership on Monday to discuss the negotiations. The current WGA contract, negotiated three years ago when the union was on the verge of a strike, expired at 12:01 a.m. Sunday. But the provisions for that contract remain in place for the time being.

The WGA membership has not taken a vote whether to authorize a strike leading most to believe that a work stoppage is unlikely. The last time writers walked out was in 1988 and lasted for more than five months.

Counter maintains that the most divisive issues are the level of contributions to the WGA health fund and residuals for pay television. He said the AMPTP is also opposed to a one-year agreement and noted that SAG had just come off negotiations for commercial actors which justified a one-year extension with that union.

``We think we are very close to agreement and we'd like to deal it out next week when we resume,'' he said.

Petrie said the companies' current offer would mean more cuts in health benefits for the WGA and does not address any of the major issues of these negotiations. He said the AMPTP has offered nothing for writers in reality and animated programming or in DVD or Internet sales.

The DVD issue is thought to be the most complicated matter because the guild has made clear that it wants a bigger share of profits from what is a booming DVD industry. But the studios maintain that the increased revenue from DVD merely offsets the escalating cost of producing and marketing feature films.

``We were sincere when we stated that we would take into consideration the realities of the marketplace,'' Petrie said. ``We have requested that the companies provide us with information supporting their statements regarding the profitability of theatrical motion pictures. The companies have refused to supply any data to support their assertion that nine out of ten films do not 'break even.' They haven't even defined 'break even.'''

In 2001, a contract agreement came three days after the expiration. Movie studios had already stockpiled product in anticipation of a strike by either writers or actors. At that time, neither DVD residuals or the booming reality TV genre were not major topics of contention.

Greg Hernandez, [phone]

greg.hernandez(at)dailynews.com