WME says it is in “substantive discussions” with the WGA to end its 21-month battle over packaging fees and the agency’s affiliation with a related production unit, Endeavor Content.
“We are currently in intensive talks with the WGA to resolve the ongoing dispute,” said Endeavor President Mark Shapiro in a statement. “The tenor of the conversation is positive and we are working diligently with the WGA to move this forward as quickly as possible.
The WGA did not respond to a request for comment.
WME is the last major talent agency that has not yet signed the WGA franchise agreement. A deal would allow WME’s writing clients to return to the agency. The WGA’s agent business reorganization campaign began in April 2019 when it ordered its members to en masse fired agents who refused to sign its code of conduct. Modified versions of this will now expire packaging fees by 2022 and limit their ownership interests in affiliated production companies to just 20%.
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On December 18, US District Court judge André Birotte Jr., who presides over their antitrust case, repeatedly urged WME and the union to resolve their dispute before it goes on trial. “Come on guys. Getting together. Do it, ”he said to the attorneys present through Zoom.
A few days later, WME made a proposal to the WGA that updated the terms of an earlier proposal. However, the WGA turned it down on December 29, saying: “WME has not yet seriously addressed its own conflicts of interest. ”
The next day, Birotte denied WME’s request for an injunction that would have ended the WGA’s boycott of the agency until the case can be brought to justice. It was a major legal win for the WGA and increased pressure on WME to resolve the dispute and sign the WGA’s franchise agreement, as did all of the other major talent agencies.
Richter rejects WME’s application for an injunction to end the WGA boycott; Great legal victory for the guild
The Directors Guild supported the WGA on December 31st when the DGA’s National Executive Director Russell Hollander sent a letter to WME President Ari Greenburg saying that the DGA “has been following the negotiations and litigation closely and is now the right one Time is to communicate our strong support for the efforts of the WGA to solve the problem of the affiliated production company. “
The WGA’s battle with the big agencies began in April 2018 when it notified the Association of Talent Agents of its intention to renegotiate its basic artist manager agreement, and a year later the writers overwhelmingly voted in favor of the agreement and all of them not terminate franchised agencies. Since then, the WGA has negotiated 10 consecutive versions of its franchise agreement to accommodate sensible agency proposals – beginning in May 2019 when it signed Verve; again last summer when it signed UTA and ICM and last month when it signed CAA.
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