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Member Referendum 2005 SAG Basic

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Title: Member Referendum 2005 SAG Basic


1
Member Referendum 2005 SAG Basic TV
Agreementsand AFTRA Exhibit A
2
This presentation is constructed from several
presentations that were shown to the
TV/Theatrical Wages and Working Conditions
Committee, the Negotiating Committees as well as
the Joint Boards of Directors of SAG and AFTRA.
They have been updated as new data has been
attained and presented here to give you, the
voting member, the same information.
3
Why Bargain in the Fall? Too early or not?
  • Reality of production schedules has changed.
  • Maximum leverage exists at the moment before
    producers prepare for a strike (stockpiling and
    reality) NOT when they have done so.
  • Stockpiling causes producers to shorten schedules
    and compress work opportunities.
  • Stockpiling creates a void of work after contract
    resolution remember the summer and fall of 2001.

4
Key ObjectivesBased on Open Member Caucuses
Committees
  • Single set of terms for television work at the
    highest level
  • Funding of Pension and Healthcare
  • Single set of terms for Background Actor work at
    the highest level
  • Residuals, including DVD, Pay TV, Made for Basic
    Cable

5
Landscape of American Labor
  • Anti-labor administration
  • Last year private-sector workers in unions fell
    to 7.9 percent from 8.2 percent - lowest since
    1900's.
  • Grocery Workers- No raises --only bonuses. New
    employees get 25 pay cut.
  • NHL- Locked out. Imposing Salary Cap- Union
    proposed a 24 pay cut and was rejected.
  • Airline Pilots- 15 cut 30 cut Terminated
    pension.
  • Hotel Workers- Working without a contract.

6
Landscape of Television
  • Falling network ratings Average drops to 3.9 in
    the 03/04 season
  • Five of the top 10 series in the 2003-04 TV
    season are reality programs
  • Digital production of half hour sitcoms pervasive

7
  • The 2005 Agreement
  • and the
  • 2004 Extension Agreement
  • must be viewed together as representing the
    achievements of this Bargaining Cycle.

8
The Deal on Minimums
  • 2005 Agreement
  • 3 - 10/1/05
  • 3 7/1/05 (Bkgrd)
  • 3 - 7/1/06
  • 3 - 7/1/07
  • Extension Agreement
  • 2.5 -7/1/04

9
Compounding Minimums--225 million in Actors
pockets over 4 years
2005 CY means the Contract Year for the 2005
Contract 1, 2, 3
10
Challenges Facing Benefit Plans
  • Costs increasing at 11
  • Boomer retiree health coverage
  • Pension plans are dependent on market returns
  • Over the last 3 years industry plans have cut
    benefits, raised deductibles, raised eligibility
    and implemented employee premiums

11
The Deal includes More Producer Money into the
Benefit Plans
  • 1.5 increase in PH rate
  • Extension Agreement .5
  • 2005 Agreement 1
  • 2 increase in HR rate, IAP
  • Theatrical cap increased to 232,000 per picture
  • Series performer earnings bank for extended
    coverage
  • PH for choreographers

12
Pension Health Contributions Almost 80 million
Over 4 Years
2005 CY means the Contract Year for the 2005
Contract 1, 2, 3
13
Increased Background ActorJobs in LA Zones
  • 5 covered jobs per day on feature films
  • 4 covered jobs per day per episode in TV
  • 1 Background Actor job gained in the Extension
    Agreement
  • 3 Background Actor jobs gained in 2005 Agt
  • 25,000 new union jobs in features
  • 50,000 new union jobs in television

14
Covered Background ActorsTelevision in the LA
Zones
Tough negotiations on this issue have yielded
nothing for more than a decade for background
working in TV -- until this bargaining cycle
where we added 4 jobs. NY keeps 25 jobs in TV.
15
Background ActorsTheatrical in the LA Zones
Not just TV.Weve continued to make progress in
features as well. Five new feature jobs on each
set in this bargaining cycle. NY keeps 85 jobs in
features.
16
Improved Safety Rules
  • Increase Rest Period from 8 to 10 hours for Stunt
    Coordinators
  • Better Definition for Dancers Hazardous Activity
  • Work in Tobacco Smoke to the Industry Union
    Safety Committee

17
Single Set of Television Terms at the Highest
Level
  • The advent of digital production in television
    and its pervasive adoption opened a contract
    loophole for producers.
  • During the late 80s and 90s film was the medium
    used for dramatic television.
  • But Digital happened and the lower terms
    applicable to tape were the contract terms
    applicable to new digital production.
  • The Extension Agreement began by raising initial
    compensation and the 2005 agreement makes the SAG
    and AFTRA agreements equal for Network digital
    work and addresses residuals for WB/UPN 1 hour
    programs.

18
Single TV Agreement
  • AFTRA Exhibit A (Network) SAG TV
  • AFTRA Exhibit E (Pay TV) SAG TV
  • Overtime at 2x instead of 1.5x
  • HR rate higher PH rate
  • Cast credit provisions with penalties
  • Background Actors under Schedule X almost a 25
    increase in salary rates 92 ? 122
  • One hour WB/UPN reruns _at_ higher SAG TV

19
The New WB UPN Terms
Paid as day performer 716 per day
  • 5 lines or less rate (approx. ½ of a day rate)
  • Overtime _at_ 30/hour
  • Rest Period Violation at 15/hour
  • No caps on Background - rate of 90/day
  • No Stunt Coordinator coverage
  • Reruns based on the Network Code

Overtime based on contracted rates - 130/hr at
scale
Rest Period Violations paid at a days pay
No Bkgrd caps -- rate of 92.25 per day 16 hr
rule
Stunt Coordinator coverage
1 hour reruns based on SAG TV
20
5 Lines or Less Day Performeron a 1 hour WB/UPN
show
21
5 Lines or Less Day Performeron a 1 hour WB/UPN
show
22
5 Lines or Less Day Performeron a 1 hour WB/UPN
show
23
Major Role Performeron a 1 hour WB/UPN show
24
Major Role Performeron a 1 hour WB/UPN show
25
Major Role Performeron a 1 hour WB/UPN show
26
So what happened to ½ hour programs and moving WB
and UPN to network residuals?The economics, as
driven by the WB and UPN ratings, just dont
justify moving to the higher paid residuals here
is the data ?
27
(No Transcript)
28
(No Transcript)
29
The Deal includes Improved Residuals
  • Pay Television Residuals Increase
  • WB/UPN digital 1 hours - pay at higher film
    residual
  • Network Ceilings Increases
  • Residuals based on minimums increase
  • Syndication, Foreign,Theatrical, Network
  • Tri-Guild Audit Fund to assure proper payment
    continues

30
The Negotiating Committee confronted the
reality of Reality Television and its
devastating impact on actors working in scripted
television.
31
Breakdown of Primetime HoursFall of 2003 vs.
Fall of 2004
32
Top 10 Series 2003-04 TV Season
33
Top 10 Series in 18-49 Week of Jan 17 - 23
34
The Reality04/05 Season v. 03/04 Season
  • Comedies lost 5.5 Hours - 11 shows
  • Dramas lost 4 hours
  • Projected loss of over 9,000 Union Jobs.
  • What will replace a failed show on the air

35
Confronting the Reality Challenge
36
Launch
  • Joined with DGA and WGA to regain the lost
    scripted hours
  • Rerun 1st 3 episodes once each within new 2 month
    window without residuals for the series
    performers
  • Successfully argued that day performers and guest
    stars do not have same immediate economic
    interest in an individual shows success.

37
Do Series Performers Lose 10,000 on the Launch?
  • No most series performers have one, two or
    three reruns pre-paid.
  • If the show fails theyve gotten paid
  • If the show succeeds they have a series
  • Is this money that series performers have been
    receiving? No no traditional reruns within the
    first couple of months.

38
Supporting Scripted Programming
  • PH contribution for pilots and new 1 hour series
    will stay at 13.5 for the term of this
    agreement.
  • Scripted TV series will be able to be promoted by
    reusing clips for six consecutive weeks
  • Clips may be used from one episode into another
    provided the performer is employed for both
    episodes

39
Changing Times in TV
  • Before -- overnight location work meant Guest
    Stars stayed home -- Now Major Role Performers
    will work in establishing shots
  • Before -- episodes shot in sequence and you got
    paid for the episode in which you worked Now
    the episodes are more frequently intermingled and
    you still get paid for the episodes in which you
    work.

40
More Changing Times in TV
  • Before the TV season started in Sept and your
    series option got picked up in June --Now HBO
    shoots year round but your option language is
    still for one year.
  • Before A show was 30 or 100 Now theres 43
    episode of Scrubs and new residuals benefits
    structure for supersized episodes

41
But why no DVD?
  • As of 2000 producers were paying residuals on 62
    of their revenue (and that percentage is
    increasing)in the early 80s when they agreed to
    the existing formula, residuals were paid on only
    35 of their revenue. They argue Video is a
    primary market. Primary market no residuals.
  • Producers currently pay residuals on all pictures
    in DVD-- winners and losers. They argue if pay
    at all, pay only on winners like Titanic. Loss
    of income to thousands of actors.
  • Producers did not give an increase to the WGA or
    the DGA.

42
1980 Studio Revenue Subject to Residuals
20 million in theatrical residuals
43
2000 Studio Revenue Subject to Residuals
195 Million in Theatrical Residuals
44
2004 Studio Revenue Subject to Residuals
290 Million in Theatrical Residuals
Source NY Times 11/14/04
45
Projected Actors Residuals in Video (DVD VHS)
46
What about Basic Cable?
  • Separate negotiation scheduled for early 2005 to
    deal with Made for Basic Cable
  • Bargaining notice sent to Universal, Paramount,
    Warner
  • Proposal to increase residuals on the table

47
What does a No Vote Mean? Starting from Ground
Zero
  • Going back to the table without
  • No increase in minimums
  • No increase in PH on that table
  • No increase in residuals on that table
  • Producer proposal to decrease residuals
  • Producers prepare for a strike or lockout
  • Stockpiling
  • Increased reality programs on the schedule

48
What does a Yes vote mean? 200 Million in
Actors Pockets
  • Principal performer minimums 133.4 M
  • Background actor numbers 10 M
  • Background actor minimums 10.8 M
  • PH 1, on new , TH cap 60 M
  • Network ceilings 2 7/1/07 1M
  • PH IACF on pilots 1 hrs -1.4M

49
A yes vote also means these benefits for Actors
  • PH for Choreographers
  • PH Bank for Series Performers
  • Single Television Agreement
  • Improvements in hazard activity and increase in
    hazard money for dancers
  • Increase from 8 to 10 hour rest period and
    increases in salary for stunt coordinators
  • Industry Union Cooperation

50
Vote Yes
  • If you have any other questions, please call the
    hotline
  • 1-800-217-6121 (9-5 PST)
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