by Larry Brody
Last night, members of the WGA received the following email about a situation with ramifications everywhere. (P.S. This seems to me to be a Good Thing and, I hope, a harbinger of even Better Things to come:)
November 18, 2019
Today the WGA signed a negotiated franchise agreement with the Rothman Brecher Ehrich Livingston Agency. This comes on the heels of last week’s agreement with Abrams Artists Agency, which means both agencies can now represent WGA members again for covered writing services.
Under the Rothman Brecher agreement, packaging fees are banned after a sunset period ending January 22, 2021. In order to induce more agencies to sign, the sunset can, under certain circumstances, be extended.
The agency also agreed to information-sharing with the Guild, including contracts and invoices, which will aid the Guild in enforcing late pay, free work, and other MBA violations.
The agreement includes other modifications to the most-recent franchise agreement, including allowing the agency to have up to a 5% ownership interest in an entity engaged in production or distribution. This limitation protects writers from the egregious conflicts of agency-owned production companies outlined in our recent video, while allowing a minimal ownership share.
You can read the agreement here. Redlines reflect changes made to the Buchwald Franchise Agreement. The most-favored-nations clause means any franchised agency may choose to adopt this agreement if it chooses.
Our goal remains to move the negotiation process forward with the remaining unsigned agencies. We will keep you updated as progress is made.
WGA Agency Negotiating Committee
Chris Keyser, Co-Chair
David Shore, Co-Chair
Meredith Stiehm, Co-Chair
Deric A. Hughes
Tracey Scott Wilson
Patric M. Verrone
David A. Goodman, President WGAW, ex-officio
Marjorie David, Vice President WGAW, ex-officio
Michele Mulroney, Secretary-Treasurer WGAW, ex-officio
Beau Willimon, President WGAE, ex-officio
Kathy McGee, Vice President WGAE, ex-officio
Bob Schneider, Secretary-Treasurer WGAE, ex-officio
WGA Statement of Purpose: Why Agencies Must Change
Our agents work for us. Every dollar they make must be generated as a percentage of the money we make. That is what it means to be our representatives and our fiduciaries. Agency-based studios and packaging fees make a mockery of that and are in violation of the agencies’ ethical and legal obligations to writers. We have taken too long to demand that these practices end. But the persistence of a corrupt system does not make it right. And putting things right does not blow up the business. We do not owe our agents their wealth; they owe us their loyalty. That is what we pay for. In a complex, changing, yet immensely profitable time in our industry, writers need true allies, not deeply conflicted ones. It is for this idea—simple, old-fashioned and un-revolutionary—that we stand—and for which we come together as a Guild again today.