SAG Strike Threat Grows

LA Times is reporting that the strike threat has Hollywood on edge as the countdown continues to June 30th when all SAG actors are likely to strike as talks between SAG leadership and the studios have failed to reach an agreement.

The talks have become so continuous that the American Federation of Television and Radio Artists (AFTRA) broke away from SAG after more then 25 years of co-representation and where able to reach an agreement modeled after those reached with the Director's Guild of America (DGA) and Writers Guild of America (WGA). SAG has refused a similar agreement citing it not going far enough to meet their demands.

This disagreement with handling of this issue extends beyond the AFTRA to include the SAG membership itself with many members expressing dissatisfaction with the lack of progress and the hard line that SAG leader Alan Rosenberg has had. The heart of the disagreement is DVD residuals, cut of advertisement fees used within a project, and fees for their images being used online. Essentially they want more then already agreed on with the DGA and WGA and as a result the studios are balking.

The actually strike is not expected to start until after July 8th. In part because of the July the 4th holiday but also because on July 8th, AFTRA's membership is expected to vote in support of the reached contract. If that occurs it could put a major dent in SAG's position. Despite that, 90% of SAG’s membership fuels the TV and movie industry so a strike would bring Hollywood to a near standstill.

SAG has granted waivers to 350 independent films (those made outside the studio system) but major studio projects have not been granted waivers as a result this directly impacts Transformers: Revenge of the Fallen which has built-in hiatus to plan for the event. The length of this hiatus is not known and if the strikes goes past the planned schedule that could prevent the movie from meeting its release date.

So to sum, SAG doesn't appear close to an agreement. If a strike occurs it will likely start July 8th or shortly after. Transformers 2 production is already shut down and when they return is unknown. The impact on current and future projects will pretty much be immediate.