Formal negotiations between the writers guilds and producers began in January 1988. The main disagreements[2][3] included:
The guilds' previous deal with producers expired on February 29, 1988. One day later, 96% of guild membership authorized a strike. On March 7, 1988, one day after rejecting a softened final offer from producers, 9,000 movie and television writers went on strike.[4] Negotiations took place during March and April under a federal mediator but broke off before resuming on May 23, again with a federal mediator.[3]
After intensive bargaining, producers made a "strike settlement offer" on June 16, 1988; the offer included an extended contract term (to four years) and expansion of creative rights, but still included the percentage-based residuals studios demanded and not a foreign residual increase writers demanded. The offer was turned down by the guilds' membership by a 3–1 margin.[3]
During July 1988, the Guild devised an interim contract. Membership approved it, and more than 150 smaller producers signed it. Major studios and outlets including Fox, Paramount, and the "Big Three" television networks refused projects from the independents who signed the deal, leading to the Guild filing an antitrust suit accusing 18 studios and networks of mounting an illegal boycott. Twenty-one dissident Guild members who still favored the June 16 offer filed a charge with the National Labor Relations Board to seek invalidation of Guild rules that barred them from returning to work during a strike; some dissidents threatened to resign Guild membership and return to work if the strike was not settled by July 28.[3]
On July 23, 1988, formal bargaining resumed, again under the auspices of federal mediators; by July 30, however, talks collapsed, with studios threatening to not bargain any further and to concentrate on producing work with non-union scripts. Behind-the-scenes "shuttle diplomacy" involving Guild negotiators, studio heads, and emissaries began on July 31 in an effort to revive talks. Guild officials and studio representatives met on August 2 to discuss the proposals, and on August 3 announced a tentative deal.[3] While the new deal gave studios the sliding residual scale they sought for hour-long reruns, writers won a modest financial gain when hour-long shows were sold internationally. The writers also gained creative rights regarding original screenplays and TV movies. The Guild board approved the deal by a 26–6 vote; Guild membership also approved the deal (2,111 in favor, 412 against), and the strike formally ended on August 7, 1988.[5]