The DGA says “studios are not yet ready to address our key issues” and will not be the first guild at the negotiating table this year

DGA executives told their members tonight that DGA will not be the first guild at the negotiating table with the AMPTP this year because “studios are not yet ready to address our key issues.” This is a break with more recent tradition: the DGA has outperformed the WGA and the SAG-AFTRA in each of the last three bargaining cycles. The last time DGA was not first was in 2010, when SAG and AFTRA came to the negotiating table first before the merger. Most recently, the WGA was first in 2007, followed by a 100-day writers’ strike.

DGA’s current film and television contract expires on June 30, the same day as SAG-AFTRA and two months after WGA’s contract expires on May 1.

In a message to their members, guild leaders said that “after careful consideration,” the guild’s 80-member negotiating committee today unanimously decided that it is not in our best interest to begin negotiations long before our contract expires. We will work with the studios to set test dates for later this spring.

Which guild goes first matters, as whoever it is tends to dictate the negotiation pattern for the others, though each guild has its own unique needs that cannot be addressed by pattern negotiations. But issues such as annual salary increases and residual rates are usually decided by the first person at the bargaining table and are usually passed on to the next two guilds when they take their turn.

However, DGA leaders emphasized this evening that “the date on which we start negotiations is far from the most important issue. The main question at hand is whether the studios will decide to adequately address the concerns of our members. These concerns include wages, flow residual, safety, creative rights and diversity. If the studios don’t address these issues, they know we’re ready to fight.”

Here is DGA’s communication to its members, signed by Jon Avnet (Negotiations Chair), Karen Gaviola (Negotiations Co-Chair), Todd Holland (Negotiations Co-Chair), and Russ Hollander (National Executive Director):

Dear Members:

“Today, after careful consideration, our 80-strong BA/FLTTA negotiating committee has unanimously determined that it is not in our best interests to begin negotiations long before our contract expires. We will work with the studios to set test dates for later this spring. As you know, our major contracts expire on April 30th.

“Our way of negotiating is always guided by a simple principle: we only negotiate when we believe we are getting the best possible deal. Sometimes this meant negotiating several months before our contract expired, when we felt the studios were willing to satisfactorily address our concerns in exchange for the stability that early negotiation could bring to everyone.

“In other negotiation cycles, we have made huge gains by delaying negotiations until later in the process. Some of our key achievements, including the creation of our ground-breaking residual pay-TV formula, came as we expired our contract. Regardless of when we negotiate, our history, including recent negotiation cycles, has resulted in best-in-class contracts that have protected our members and the company.

“For the past year and a half, we have followed our normal, thorough process to prepare for successful negotiations. This preparation includes thorough research, strategy development, consulting with leading industry experts, building a negotiating committee to represent our diverse membership, researching and interviewing members to develop our priorities, and much more. This process also includes preliminary discussions with studios to determine their willingness to address the issues that matter most to our members. At this point, the studios are not ready to address our key issues.

“The date we start negotiations is far from the most important point. The main question at hand is whether the studios will decide to adequately address our members’ concerns. These concerns include wages, flow residual, safety, creative rights and diversity. If the studios don’t address these issues, they know we’re ready to fight.

“The bottom line is: We are partners in this business. This means negotiating a new contract that continues to treat our members fairly and with respect, that recognizes and rewards our important contributions to this industry no matter how it evolves, that supports our common interest in building a healthy, vibrant and strengthen stable business, entertaining and entertaining audiences around the world.

“Our process and preparation continues – we expect to hear a lot more from us in the coming weeks and months – until we get a fantastic contract. Negotiations this cycle are about more than just a strong contract for the next three years – they are about the course of the future of our industry, and we will achieve it.”