Based upon
some recent press reports, it is apparent that there is confusion as to the
status of the JPC's talks with SAG and AFTRA over the commercials
contract. Contrary to reports, the talks
are not at a standstill nor are they contentious or nerve wracking. In truth, the two sides continue to strive
for a solution and are working together to find common interests on which agreements
can be made. And while there are
certainly some sensitive issues relating to compensation models, pension and
health fund issues, and other areas, progress has been made every day we've
met. Perhaps the hiatus we took off from
negotiations this past week created the illusion that we're not moving to a
solution. Such a conclusion is simply
incorrect.
While one
can never count out the prospect of an impasse despite the best intentions of
both sides, I have no reason today to believe that we are on a path that will
lead to such a result. Rather, the two
sides are actively discussing the pros and cons of the models proposed by Booz
& Company in the joint study undertaken by the JPC and the unions. We're also exploring ways to keep production
in the United States and to address JPC and union concerns in a variety of areas. Between the proposals put on the table by the
JPC and unions, we're looking at just over 60 proposals. We've resolved many of them and are fast
getting down to those that have the most economic impact. And while the negotiations will certainly be
robust and perhaps even tense at times, both sides are professional and
courteous and fully understand and appreciate that it will be in no one’s best
interest to reach an impasse or live through another strike.
So I and
the JPC remain cautiously optimistic and while we logically advise authorizers
to prepare for the worst, we do not at this point believe the worst will
happen. Should our viewpoint change, we
will immediately notify the industry via this blog and in the media. Of course, if you have any questions in the
meantime, feel free to contact me at dwood@reedsmith.com.