Here is the best explanation I have received about this contract and why we should all vote NO!!!! Here is my interpretation of the new TV/Theatrical contract and the issues that I think are most relevant. This is based on my own research and what I have read. No Con Statement / Minority Report: No such report was submitted along with the Referendum for the members to review prior to voting. I feel that was a mistake on the part of union leadership as the members should have been provided with opposing views of the contract in order to make a more educated decision. Stunt Professionals Did Not Receive any Stunt Specific Gains: The proposal the negotiating committee went in with was to eliminate the stunt coordinator flat deal. When that was rejected they asked to increase the flat rate by greater than the minimum wage increase percentages, but we didn’t get that either. Wage Increases: Performers and coordinators will receive a pay raise of 8.5% over 3 years (2.5%, 3%, 3%). The first year raise of 2.5% will be retroactive to July 1. This will apply to the legacy SAG TV, AFTRA Exhibit A, CW and SAG Basic Cable contracts as well as the new TV contract. Some feel this is a standard raise we usually get at every negotiation and therefore is not much of an achievement. Pension & Health Contribution Increase: We will be receiving a 0.5% increase in pension and health contributions. One TV Contract for New TV Shows: The new TV contract now has SAG TV, AFTRA Exhibit A, CW, and SAG Basic Cable under one contract. SAG TV and AFTRA Exhibit A will have the same terms based off the 2011 SAG TV contract. CW and SAG Basic Cable will have their own terms. Achieving one TV contract for SAG TV and AFTRA Exhibit A came at the cost of reduced compensation. Instead of getting $911 (the higher AFTRA rate of $889 plus the 2.5% first year raise) for dailys, performers and coordinators will be receiving the lower SAG rate of $859 plus the 2.5% first year raise under this new contract, which equals $880. This means we will not have surpassed our current higher AFTRA rate until the 3% second year raise in July 2015, which will bring our daily rate to $906. The 3% third year raise of will increase our daily rate to $933. This will apply to all new TV series. TV shows that are currently on legacy SAG TV and AFTRA Exhibit A contracts will continue on those contracts, with the applicable raises, until the series ends. CW and SAG Basic Cable legacy contracts will also continue for the life of the series. We achieved one TV contract, but we are taking a pay cut. However, it was explained that having a single contract is a necessary step towards resolving the issue of having two pension plans. That cannot be done until we have one TV contract. NY Studio Zone Expansion: During a previous negotiation the 8 mile NY studio zone was expanded to 25 miles. In this negotiation, the producers requested an expansion to a 30 mile radius. This only applies to principal performers and not background. This means producers will get an extra 5 mile radius in which they will not have to pay principal performers for travel time and mileage reimbursement. This expansion may allow for some of the new studio spaces that are being built outside of the current 25 mile studio zone to now be included in the studio zone. Many are concerned that the additional 5 miles will increase unpaid travel time to and from set. High Budget SVOD Contract: The High Budget Subscription Video On Demand “SVOD” contract rules go into affect on October 1 and not retroactively to July 1 as the other terms of the new contract do. This contract covers high budget shows that stream on services such as Netflix, Amazon and Hulu Plus (“exhibition platform”). Prior to this contract, new media shows would bargain with the union on a case-by-case basis. Standardized minimums were not established. This new contract sets minimums such as wages, turn around times, meal penalties, overtime, etc. for three tiers which are based on the show’s budget, length and the exhibition platform’s subscription base. Tier 1 shows have the largest budget and the exhibition platform has at least 15 million subscribers. The contract for these shows will be the same as the new TV agreement. I have asked the union for current examples of this type of show to better understand what shows would fall under this Tier. Tier 2 shows have a lower budget and the exhibition platform has at least 15 million subscribers. Performers who work on these shows will receive their full session fee (“initial compensation”) but residuals, overtime and penalties will be deducted by 35% (“credit”). I have asked the union for: 1) A mathematical example of how this 35% credit will work against the first residual of 30% performers will receive for these shows. 2) An explanation on how penalties and overtime figure into this credit. 3) If all other terms are the same as new TV agreement, such as turn around times, meal penalties, overtime, etc. 4) Current examples of this type of show. Tier 3 shows have at least the same budget parameters as Tier 2 but the exhibition platform has less than 15 million subscribers. Performers will receive a 65% deduction in residuals, overtime and penalties. I have asked the union for: 1) A mathematical example of how this 65% credit will work against the first residual of 30% performers will receive for these shows. 2) An explanation on how penalties and overtime figure into this credit. 3) If all other terms are the same as new TV agreement, such as turn around times, meal penalties, overtime, etc. 4) Current examples of this type of show. Established High Budget SVOD shows will continue on their current contracts. All new High Budget SVOD programs produced by members of the Alliance of Motion Picture and Television Producers (“AMPTP”) will be required to follow this new contract. If the producer is not a member of the AMPTP, the union will negotiate an individual deal. I have asked the union if “Daredevil” will be subject to this new contract (though based on when these terms will go into affect it seems unlikely) and if the upcoming Marvel Netflix shows will fall under this new contract. High Budget SVOD Residuals: The pay received for the session fee on High Budget SVOD shows includes one year of free usage on the platform of initial exhibition (Netflix, Amazon, Hulu Plus) under the new contract. You do not get a residual in the first year (unless the producer exhibits the show on a different platform). Assuming you worked a daily contract on a Tier 1 show, for the second year you would receive 30% of your compensation up to the Network Prime Time Rerun Ceilings (“money break”). That comes to $264 (at the new daily rate of $880) for the entire second year. If you worked on a Tier 2 show there’s an additional 35% discount, and a Tier 3 show would be deducted by 65%. Residuals will continue to be received in Year 3 and after, starting at 30% and dropping down to 1.5% by Year 13. I have asked the union for the current residual formula for shows that would be considered High Budged SVOD programs in order to make a comparison of what we had versus what we would be receiving under the new contract. Network Prime Time Residuals: Network prime time rerun ceilings (“money break”) will increase by 2% each year of the contract for legacy SAG TV & AFTRA Exhibit A contracts as well as the new TV contract. Basic Cable Residuals: Despite the union’s attempts, our residuals formula for basic cable did not increase. It is still 17% of scale for the 1st rerun and drops to 1.5% of scale for the 12th and any subsequent reruns. In addition, when shows are licensed from one cable service to another cable service, producers will no longer be following the run-based, fixed residuals formula for exhibition on the second cable service. Instead performers will share in a lesser residual equal to 6% of the distributor’s gross receipts split between the cast. There are stipulations in place that will ensure performers receive a fair market value, and this new residual will apply only to shelved programs. New Residual for TV Created: On-demand TV shows available through cable service providers or new media service providers (streaming services) that play commercials and are free to the consumer will now be paying out a residual. Pension & Health: Under the new TV contract, benefits for new TV shows will be distributed as: 57% to SAG P&H, 43% to AFTRA H&R, based on the type of programming. Benefit contributions for shows that are on legacy SAG TV and AFTRA Exhibit A contracts will continue to be made to whichever benefit plan the producer is currently making contributions. This will apply for the life of the series. Some are concerned that the split in our earnings is now memorialized in the contract. And we will not have a choice as to which plan our benefit fund contributions will go. The union explained that our employers have payout liabilities attached to our pensions which is why we are not given control over which fund our contributions will go into. $75 Travel Pay: We did not achieve any change in the $75 day rate for travel to the producer’s base. In Summary: There was no con statement / minority report provided for this contract. The stunt community did not receive any gains. Wage increases are considered standard. Pension & health contributions were increased by 0.5%. A single TV contract was achieved at the cost of reduced compensation in order to progress towards resolving the issue of having two pension plans. The NY studio zone will be expanded by 5 miles which will reduce travel time pay and mileage reimbursements. High Budget SVOD shows now have minimums. Additional earnings for Tier 2 and Tier 3 High Budget SVOD shows are greatly discounted. Residuals for High Budget SVOD shows are significantly lower than Network TV shows. Network prime time rerun ceilings (“money break”) will increase by 2% each year. Basic cable residuals did not increase despite the growth in basic cable shows, many of which have ratings on par with network shows. Residuals from cable to cable licensing are also minimal. A new residual was created for free on-demand TV shows that play commercials. The split in pension and health fund contributions is memorialized in the contract. Due to employer liability concerns, members do not have a choice in where their contributions go. There is no improvement in the $75 travel pay rate. Certain gains were sacrificed in order to establish new foundations for the merged union to build from, such as the unified contract at a lower pay rate and the institution of a residuals formula for High Budget SVOD shows, though at a lower rate than Network TV residuals. High Budget SVOD shows now have minimums and that is an accomplishment, as is the new residual for free on-demand TV shows and the money break increase for network prime time residuals. In addition to not gaining anything for the stunt community, my main concerns are the pay cut we will be taking with the new TV contract, the residual structure for High Budget SVOD shows being too low considering the industry will inevitably be shifting more towards streaming over TV broadcasting, the expansion of the NY studio zone, and the $75 travel pay rate. We also didn’t make any gains in basic cable residuals. Taking all of this into consideration, I feel that we came up short in these negotiations and that our new contract should have reflected the strength of the merged union. Therefore I will be voting “NO” on this contract. If we do not approve the new contract we will reenter negotiations with the producers. It does not necessarily mean we will go on strike. Whether you vote YES or NO, everyone should vote. If you are unhappy with the contract, the union needs to know that. Don’t feel helpless because you think the contract will pass anyway. If there is a large minority of people voting NO, the union will have to take notice. It will send a message to union leadership. Votes are due by Friday, August 22. Vote online at ivsballot/tvtheatrical.
Posted on: Sat, 16 Aug 2014 21:27:34 +0000
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