Writers Guild warns ITV investors

The Writers Guild of America East (WGAE) has questioned whether ITV has a sustainable plan for growth in the US market, as the UK broadcaster released strong full-year 2014 results today.

ITV posted pre-tax profits of £712m (US$1.1bn), a 23% rise from 2013, after a strong performance from online and advertising and from production arm ITV Studios. The company also saw total revenues of £2.96bn for the 12 months to 31 December 2014, up from £2.75bn the previous year.

Following the announcement, the WGAE-AFL-CIO union has criticised ITV’s US operations by reminding investors it has filed charges at the US federal government’s National Labor Relations Board, alleging that ITV has failed to bargain in good faith and has violated federal labour law.

“The WGAE suggests investors question whether ITV has a sustainable plan for growth in the US market or instead is blustering and blundering into a land it fundamentally does not understand,” a WGAE spokesman said.

“ITV promises to increase profits by growing production of content, particularly in the US. At the same time, ITV will not enter an agreement with the WGAE or AFL-CIO, the union representing comedy-variety, drama, news, public affairs and other television and film writers.

“Neither ITV nor its potential partners in US network television can create and produce shows without the talent and experience of WGAE members, who refuse to work without guild contracts.”

The attack comes as ITV continues its buying spree across the US, including paying US$360m for a controlling stake in Pawn Stars producer Leftfield Entertainment in May last year.

Last week the company confirmed to the UK stock market that it was in exclusive talks to acquire John De Mol’s Talpa Media prodco, known for The Voice. CEO Adam Crozier told investors this morning that the move was part of a drive to create an international formats business.

The WGAE claims ITV has cut guild-represented employees’ compensation by US$300 a month and has “implemented a health insurance plan with deductibles so high that employees would never get paid any actual benefits except if they were hospitalised for long periods.”

The organisation also alleges employees would have to pay US$130 per month in premiums for the coverage.

An ITV spokesman told C21 the unfair labour practice charge filed by the WGAE was “completely without foundation.”

“It is the latest attempt by the union to falsely claim we are not prepared to negotiate in good faith and fails to recognise that agreement has been reached on the majority of terms and conditions that have been raised at the bargaining table, including minimum salaries,” he said. “We are vigorously defending these false and malicious claims.”

At the end of last year the guild urged its members not to work on NBC’s forthcoming remake of UK format Saturday Night Takeaway amid ongoing discussions with ITV over health benefits, paid time off and minimum levels of compensation.