The decision by SAG president Alan Rosenberg and executive director and chief negotiator Doug Allen to delay the Strike Authorization Ballot originally scheduled to start January 3rd should be recognized as the smart move to make now when SAG’s solidarity is splitting down the middle. It is a mature recognition that both sides on this issue raise valid points and deserve to be heard before anything with the word “strike” on it is considered by members.
The “Yes” camp believes that actors will be stuck with what is inarguably a lousy deal undermining residuals not just for the next three years but perhaps forever given Big Media’s historical refusal to contractually revisit new technologies. The “No” camp thinks that a Strike Authorization will inevitably lead to an ill-timed strike in this economic recession and that SAG should join the other Hollywood guilds in 3 years to try to negotiate better terms with the AMPTP.
So what was supposed to be a January 24th weekend National Board meeting has now been moved up to January 12th and 13th. It’ll constitute one of the two plenary face-to-face confabs held each year. The NY Division and the Regional Divisions should have no trouble traveling to the Hollywood division’s backyard with so much advance notice. The point of this decision to delay is to ensure a fair airing of all views. (It even takes into account the “No” vote petition supposedly signed by ”well-known” actors even though the list includes no mechanism for verifying the names posted on it.)
I believe that SAG now has a unique opportunity to bypass a strike authorization altogether and place itself in an even stronger negotiating position by following a third and less risky course of action: to vote on the AMPTP’s June 30th contract proposal.
Therefore, I urge SAG to drop the Strike Authorization Ballot for now. That 75% “Yes” vote threshold would be tough to succeed even if the economy were fine, TV and movie productions plentiful, and the big actors union had gone first instead of last in this contract negotiation. But it is what happens if the Strike Authorization Ballot fails that shows even holding the vote is a risk that’s too great to take. SAG would be left weakened, divided, and without any leverage to go up against the AMPTP. In that situation, SAG would have no choice but to accept the AMPTP June 30th deal now on the table.
So, SAG, take advantage of the choice that is still yours. I say the National Board should send out the June 30th AMPTP contract proposal as is and let the members decide to ratify it or not. Only a 50% threshold is necessary either way. To further heal the divisiveness, SAG’s National Board can refuse to offer a recommendation one way or the other about the deal. This would truly allow for the most democratic vote possible. Under normal circumstances, the negotiating committee would recommend the contract to the National Board, which would then stamp it with an endorsement. I’ve checked the SAG rules, and nothing there prevents the contract from being sent out “neutrally” for ratification now.
If the contract would have to be judged based solely on its merits or demerits, then the employers would find themselves hoisted on their own petard. Because the scapegoating of Rosenberg and Allen and even the negotiating committee would have to stop. Even SAG’s own focus would change from the infighting to the deal, which is where it belonged in the first place.
So let’s say the contract is sent out for a vote now. What happens next?
If the contract is ratified, then SAG holds its fire for three years and I predict the mother of all strikes by two or more guilds will hit Hollywood at that time. Basically, Big Media is swapping big pain now for much less hurt down the line. They’re betting that their cartel will control even more of New Media. As for SAG, it’s clear that the reality of working under its own contract or AFTRA’s will leave even affected members bitter at having been bullied into a bad deal.
But if the contract is rejected, then the AMPTP and Big Media would have to realize that this isn’t just Rosenberg or Allen shooting their mouths off about the rotten terms. Instead, SAG members themselves would have said “No” to the deal. It would also send a message to the moguls that leaving these negotiations in the hands of the labor lawyers didn’t work. And Carol Lombardini’s “tryout” for Nick Counter’s job as AMPTP presidet was a big fat failure. The Hollywood CEOs would have to start engaging in backchannel negotiations just like they did during the WGA strike. Now SAG could bargain from a position of real strength. Because they would be representing the will of their members. As for a Strike Authorization Vote, that could still hang out there as a last-ditch resort which hopefully proves unnecessary.
This is not my fight. But this is my website. I’m not presuming to act like a know-it-all. But like any journalist covering the business of Hollywood, I spend all day talking to very smart people (as well as a lot of mouthbreathers) who make up all facets of the entertainment business. But no one whispered in my ear what to post here. Occasionally, during the writers strike, I offered suggestions (like bringing in the agents, which ultimately proved helpful). So I respectfully urge SAG to consider my proposal. Or not. Again, your choice.
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Here is Doug Allen’s letter to SAG’s National Board announcing the delay:Dear Screen Actors Guild Member,
A number of National Board members have expressed concern about the organized opposition to SAG’s vote “yes” campaign to encourage members to authorize the National Board to determine whether to call a strike in the TV/Theatrical contracts. While almost 100 high profile members and 2524 total members have endorsed the strike authorization vote mandated by the National Board, more than 100 high profile actors and 1373 actors have lent their names to the opposition campaign. This division does not help our effort to get an agreement from the AMPTP that our members will ratify.
Accordingly, President Rosenberg and I have decided to call a special face-to-face National Board meeting in Los Angeles, during the week of January 12, to discuss how we can address this unfortunate division and restore the consensus demonstrated by the National Board at our October meeting.
The Christmas and New Year’s holidays, and the Commercials Contract W&W plenary in New York the first week of January, preclude scheduling such a meeting before the week of January 12. In accordance with our Constitution, this special meeting will constitute one of our two face-to-face plenary meetings for 2009.
In light of the subject matter of this special meeting, the strike authorization balloting will be re-scheduled to take place over a three-week period immediately following this special board meeting. This will provide us with more time to conduct member education and outreach on the referendum before the balloting.
This meeting will replace the January 24, 2009 plenary and will occur in Los Angeles all day January 12, and part of January 13.
Sincerely,
Doug Allen
National Executive Director and Chief NegotiatorAnd here is the AMPTP’s latest statement:
The last year has surely been a challenging one, but after long sessions of hard bargaining, all of the Guilds and Unions in our industry, except one, have reached new labor agreements. These agreements contain meaningful economic increases and first-ever new media rights and residuals. We are proud to have made such important agreements even as the national economic crisis has worsened almost by the day. We sincerely hope that, before too much time passes in 2009, we will also reach a labor agreement with the Screen Actors Guild. For that reason, we are continuing to urge SAG members to study the Producers’ offer at AMPTP.org, and make an independent decision as to whether it makes sense to strike over a deal that will raise wages, raise benefits, add new residuals and establish jurisdiction in new media for the first time.”
Editor-in-Chief Nikki Finke - tip her here.


The fact is a strike is the best way to have leverage. New Media is the future. If SAG agrees to the final offer as did the other unions, negotiating for New Mwdia will never again be possible. Sunset clauses are bullshit promises.From the AMPTP standpoint, why would they give ground on something so profitable after all unions agreed to it? SAG must strike. The industry is not in a recession and won’t be ever.
And to these name actors who support a no strike vote…screw them for trying to sway the struggling actors’ votes. They work above the contract with the help of their powerful agent (if even necessary) and super lawyer. Many of them also produce and thus are thinking of the potential and major profits in New Media.
SAG members must unite, strike and protect the future of residuals. That’s where the money is. Imagine a future where SAG becomes useless, AFTRA becomes the AMPTP’s suckup and all ANYONE has to do is be the highest bidder to be an actor.
I think your suggestion is the best I’ve heard yet.
The postcard poll showed 87% of SAG respondents didn’t want the deal. The AMPTP ignored that. But if we have to do that again, fine. I’m ready for the strike authorization, but I can reject the proposal one more time.
This makes no more sense than Doug Allen’s anti-AFTRA strategy. Dump Allen, dump the negotiating committee and return to the table. The Producers will bring the proposal into line with the AFTRA deal. Live to fight another day with serious leadership.
Right on Nikki — best strategy ever. There’s no way the membership will ratify this contract as is . . . This is one good way to stop all the Alan/Allen bashing and somewhat united this union.
We should have hired you do the negotiate!
That makes too much sense. With that kind of levelheadedness it could work out to a better deal. But where’s the drama? I wanted to see Charlie go at it with his dad, or maybe Streep and Hunter mud wrestle. Something.
It’s nice to hear a proposal from Nikki. Well intentioned, and it will be interesting to see if she gets a hearing or gets the brush-off.
My take on it is: if the”no” people are predicting a 75% “yes” strike authorization vote would STILL not compel the AMPTP to negotiate in good faith for the FIRST time since this began – what makes Nikki think a simple majority will compel the AMPTP to do anything but the same, as in “It wasn’t ratified? Too bad. That’s your problem” from the producers and we’re… where?
It is certainly a seminal moment in the history of the guild:
One group (we don’t know how large or how many of them will vote) thinks the economy renders even a Strike Authorization going OUT a mistake, let alone the prospect of an actual strike. They say “wait three years. The economy will be better, the unions will be unityed and we’ll go to war then with unbeatable leverage. Now is NOT the time to put people out of work.”
One group (we don’t know how large or how many will vote) says the timing is being forced on us by the AMPTP, and, despite the economy, it is suicide to allow the producers to phase out clip consent, make product placement having actors perform commercials in character in TV and movies, and the loss of forcemajeure, a right since 1937, plus the non-payment of forcemajeure claims 60 million or more due the guild from the WGA strike. This group thinks the “sunset clause” other unions are banking on is a joke, they believe this utopian vision of union unity in three years having unstoppable leverage with the AMPTP, and getting back all the goodies the producers are just figuring out as to how to extract maximum profit from new media, while putting middle-class actors out of business, is a naive, dangerously naive scenario that has no basis in precedent or rational labor negotiating.
I’m in camp 2.
If you understand it is just a question of time before you will HAVE to respond, you may as well respond now, as this contract is being shoved down our throats, rather than in three years, after we’ve caved and put it in writing, and are MUCH less likely to receive any reversals from the AMPTP.
The “stars” who say “vote no” seem to be letting deeply felt guilt over their own success paralyze the stark future facing the middle-class actor they SHOULD be supporting and making their FIRST priority, rather than other unions and ancilliary businesses and guilt that actors will be walking picket lines in New York In February if it comes to that, while they vacation in St. Bart.
It is easy to vote “no’ and feel heroic to the “actor you don’t in good conscience want to put out of work, or the other union members of these businesses that depend on us,” but, of course, that short-term thinking is EXACTLY the trap the AMPTP is banking on SAG falling into, while the producers understand the LONG-TERM vision is THE KEY: a vision of new media unencumbered by profit participation with actors in residuals via a percentage of distributor’s gross, and rollbacks in actor;s traditional protections (clip consent, product placement, force majeure) that allow producers to pretty much force the middle-class actor to do their bidding if they want any work at all, backed by a union that has sold it’s strength and ability to protect its own membership cheap, and will never get it back
I think this is about the future of SAG: we get it right now – whatever it takes – or there effectively will BE no Scrren Actors Guild anymore, except in name.
We must DEMAND our rights, rights we ALREADY HAVE, and rights our predecessors fought for, suffered for, went on strike for. It will shame our heritage as members of this once, and still proud Guild to run away from the obvious threat the AMPTP is forcing on us. Either we tell them in no uncertain terms that WE make the product THEY sell and therefore we DEMAND the respect ofnot a “better” contract, but, simply a fair and reasonable one.
This is not SAG’s doing, and NOTHING Alan Rosenberg or Doug Allen have done or not done changes the reality that the AMPTP, LONG AGO (hell, they SAID it in the NY Times in 2007) decided they wanted to end the payment of residuals to actors. Since it’s a third to half the income of the middle-class actor – as opposed to the “star” actors, who seem to have forgotten when those residual checks allowed them to pay the light bill, put food on the table, and continue to pursue a career as an actor, SAG middle-class actors, the VAST MAJORITY of the union MUST use their collective power NOW to force the producers to negotiate realistically, give us a fair deal in new media, drop these other prohibitive demands, and let us all get back to work.
A lot of the analysis I have heard from the pro-strike side hinges on the home video deal. The home video rate was agreed to in the infancy of the delivery system, then never revised. That is used as the crux of the argument for striking now over new media. Don’t repeat history.
But why does no one mention that the WGA conducted the longest strike in its modern history to attempt to change that rate. Did that strike action work?
People act like the lesson of home video was that the WGA didn’t strike long and hard enough. I say the lesson of home video is that a single union’s actions are not enough to move the companies in the modern business landscape.
Of course the real lesson of home video is never agree to ANY rate in the infancy of a new delivery system. If you’re willing to lose some income now for income later by striking, you should have been willing to let new media ride until you knew how much money was there. But that’s already been mucked up.
I love Alan’s persistent comments regarding the need to educate people in order ofr them to come to his side. Has it ever occurred to Mr. R that people can be just as educated as he is and come to a different conclusion? Is he implying that ignorance or stupidity is the only reason anyone might possibly disagree with him?
Way to go Alan — imply vacuous ignorance on the part of many people in your own Union. That sort of flowery talk aint going to win the day with the people you need most, and it provides a window in to the way this mess has been handle from the start. You aren’t educated unless you agree with Mr. R.
While I’m personally sympathetic to many of the issues that SAG “was” seeking, the strategists have been the union equivalent to the Detroit Lions. What a mess…. perhaps its time to realize the real plausible fight is a few years down the line. By that time there may be some healing between AFTRA and SAG providing someone has the sense not to further alienate potential partnerships.
Nikki nails it.
If the strike vote fails, then what does the AMPTP have to argue with? They know at that point there is no strike coming. At that point, there is no bargaining, just as Nikki points out. The odds of reaching a 75% super majority in favor of a strike right now are almost nil. But if you throw this to a vote, would it be accepted? That’s a possibility, of course, but if that happens, it happens… what it would really show if that happens is that the union would have never remotely weathered a strike, which would be damaging in a way that couldn’t be put back together. So, throw it out there for a vote. Be transparent. Let everyone who’s voting know exactly what they are getting, and see what happens.
But taking a vote on a strike when you know it will fail? Idiocy. You know 100% at that point you will HAVE to take the deal, because at that point why would AMPTP re-negotiate at all? They’d know all your threats were completely hollow then.
Nikki,
Very thoughtful and levelheaded. I hope someone with some power in this whole thing reads your blog.
If the vote is sent out with no recommendation either way, it’s the same as a “no” recommendation. The vote will fail, and we’ll be exactly where we are now with more months of uncertainty. Nice idea, but won’t work.
Nikkie, your recommendation is the best approach. Let the members vote on the contract. And if they don’t vote, then they shouldn’t vitch about whatever happens.
Time to put up or shut up.
Just thought you’d all enjoy chewing on this for a while:
Eileen Henry, Former 2nd National Vice President, Screen Actors Guild, Former NY President, Screen Actors Guild Current Trustee, Screen Actors Guild Pension and Health Plan speaks out about NO campaigns:
“I’ve seen, as have you, that once people invest themselves in mounting a “NO” campaign, it takes on an ugly life of its own. And to what end? Is the will of the majority of the Board never to be followed? How much dissension can any organization take before it implodes under the constant pressure? The simple truth is that if you don’t trust your elected Board, the people you have chosen to represent you, then this form of government can never work.” (Screen Actor Magazine Summer 2004)
Hmmm…
I think you are right about the “mother of all strikes” occurring in 3 years time. The biggest issue isn’t what is on the table now, but the fact that the residuals system is completely broken. Why anyone should be paid out of the gross proceeds of a movie is beyond me. The studios should account 100% of all proceeds on a movie or television show, but they should be permitted to recoup all of their actual out-of-pocket costs on each show/film (production, distribution and marketing, but not studio overhead) before anything is paid out to anyone. After recoupment, the guilds would be eligible for a higher share of the proceeds, along with any backend participations payable to talent. However, in order for this “new world order” to be put in place, the business needs to officially bury the Gross Deal. Let’s put some smart business sense into the business of entertainment. The studios can then stop whining about all of their escalating costs (which only get compounded by stupid gross deals), and the guilds can stoph whining about not getting 100% of proceeds included in their residuals calculation pot. As it is, the studios (and frankly anyone who finances TV or film) have to give out 7-8% of the gross off the top to the guilds before they recoup their costs. This gets compounded by the greedy stars (and the agents who rep them) and the equally greedy studios who pay out additional gross to those stars / talent. Let’s make this a true success based business, where everyone prospers in success, but no one prospers in failure. That’s only fair, and it aligns everyone’s interest.
Correct me if I’m wrong but I notice that the AMPTP only calls what it had on the table as of June 30th 2008 its ‘Last Offer’ not its ‘Last Best & Final Offer’. Legally the latter term has significance while the former doesn’t. If what the AMPTP has put out there is really a ‘Last Best & Final Offer’ *AND* if SAG turns it down, the companies can then impose its terms and conditions, which of course SAG can then act upon accordingly. I really don’t think the AMPTP intends what they have offered as of June 30th, 2008 to be a ‘Last Best & Final Offer’ or otherwise they would have used that legal term of art in their press releases etc. I really don’t think the AMPTP wants to provoke a strike or at least they don’t want to be seen as being responsible for one happening so they’re cool with all the dissention going on in the actors camp (they figure actors will keep blaming each other and not them).
Moreover one possible outcome of a ‘Last Best & Final Offer’ is in U.S. labor law a concept
called “premature impasse” by which employers incorrectly declare an offer ‘Last Best & Final’.
This is an unfair labor practice exposing the
companies to serious legal liabilities.
SAG could argue that the AMPTP is not actually the decision-maker in the negotiations process or the party to properly bind the companies to an agreement and that if all the execs themselves don’t come to the table to bargain, “premature impasse” has been reached. I also think the AMPTP does not want to go here which is why they call the offer a ‘Last Offer’ and not a ”Last Best & Final Offer’.
If I am right, shouldn’t SAG’s leadership make the AMPTP clarify that the ‘Last Offer’ is actually a ‘Last Best & Final Offer’ before it sends it out for a ratification vote as Nikki suggests? It’s that next step beyond a ratification vote that needs clarity (and could be a trap for the unwary if duly deserving executives)
Also I’m 100% with Eric Bogosian’s suggestion…the WGA had showrunners (producer-writers with clout) to help push things along…his suggestion of a group of producer-actors with clout to help with the restarting of the negotiations process is a good one.
Meanwhile other channels are being looked at by other interested parties including fans & viewers…we have lots of research and thinking to do over the holidays.
I love you, Nikki!!!!
Happy Holidays!
Although I understand where you are coming from, Nikki, your assumptions of the sudden involvement of the CEO’s is a little naive. And believe me, your suggestions have been discussed, ad-nauseum (sic) by many on the board. It is not a new idea/recommendation.
Many believe the strike authorization is the first bite of a shitty apple. The second bite, if the authorization fails, is sending the June 30th deal to the members for ratification. Many believe that to send out the offer, without first taking the temperature of the membership, is a risk.
Believe it or not, some believe that the membership would ratify this crappy deal, believing that in 3 years all the stars and moons will align, SAG and AFTRA will be successfully merged, the economy will miraculously rebound, the DGA will beg for forgiveness by not selling us out (again), the WGA will have the stomach to endure another strike, the Teamsters and IATSE will see how important residuals in new media are to those “lazy, spoiled, pansy-ass, whiny” actors, and our highest of the high profile actor/ producers will see the light and band together to really stick it to “The Man”. Come on!
I say let the membership have its say. Let the membership vote on the strike authorization. Demand that the national board let the autho go out. Whether we achieve the 75% or not, god darn it, the membership has the right to voice its opinion.
What I don’t quite understand is why UFS and the NY Board demanded anything at all. If we are to believe the nay sayers, there’s not a chance in hell that the strike autho will pass. Why didn’t UFS and NY just sit on their small hands and remain quite, watching everything fall apart so they can then ride into town ( or board room) on white horses to save the day? Maybe someone can explain to me why Ned Vaughn and his crew are demanding yet another board meeting. To discuss what? If things are going their way, why not just wait until the scheduled plenary to fire NED Allen, nullify Rosenberg and his supporters, create a shiny new negotiating committee with John McGuire at the helm and sit down with those mean ole AMPTP monsters and smile, charm and flirt their way into begging for the AFTRA deal?
Reality: It doesn’t matter who sits across from them; MF, NY, UFS, or Jesus Christ, Moses,Buddha and L.Ron Hubbard, the AMPTP will not give up on their new media proposals without a freakin’ fight. They do not want to pay residuals on all products made for new media. They don’t want to be forced to use SAG members in new media productions with budgets of $15K or less. They don’t want to be forced to provide meal breaks on feature films. They don’t want to pay up on the $60 to $100 Million they owe 87 casts due to our Force Majeure protections. They want the freedom to force an actor to do a commercial within scripted programming without consent or even compensation. And on and on and on. That infamous “Sunset Clause”, that UFS, Richard Masur, the NY board and others are relying on, is as real as Santa Clause.
We need to at least find out how far the SAG membership is willing to go. The board needs to be told by the membership either “take the deal and wait to fight” or “hold firm, force them back to the table and do the best you can”. The only voices that count are all of our voices. Not just Producers Hanks, Clooney, Sarrandan, Perlman, Devito, Baldwin, Field, Alexander, Olin ( also a show runner), and any other actor who has completely lost touch with the rest of us who rely on residuals, clip consent payments, commercials, getting a meal break, and everything else the majority of the SAG negotiating committee is trying to protect, to earn a decent living in this industry.
Oh, and by the way… for all of the series regulars/movie stars who have signed onto the “Vote No” petition… since the money is so unimportant to your personal lives, if SAG is successful in achieving the millions of dollars owed because of Force Majeure and the WGA strike, either through these negotiations or the pending arbitration SAG filed on YOUR behalf, do the rest of us a big favor; donate your force majeure earnings to the SAG Foundation.
Theev
You have no idea what you are talking about! in your world no one would make a dime. Everyone knows a movie never makes a profit. The bigger the movie the less it “MAKES” did you know “Pursuit of Happyness” Sonys biggest movie of the year didn’t “Make” a dime. The only backend money seen by anybody was Will Smith who had a percentage of Fisrt dollar Gross. You must be a producer or a fool or both.
Merry Christmas!
I wish someone would look into the vote “NO” petition’s 1,300-some numbers since there is no way to verify who “signed” the NO list.
The NO “petition” website simply asks for a name, and check a box if you are a SAG member. How can that be verified???
The SAG.org YES VOTE petition asks for your name,email, and SAG membership number. I would think the membership number is a pretty good validation.
But on NO, check a box “I am SAG” and leave an email address, phoney or real, on the “NO” petition. Seems pretty bogus. And if you check the NO list there are double names and names that are also on the VOTE YES petition.
You decide which is real and which is illusion.
The AMPTP in a press release said, “For that reason, we are continuing to urge SAG members to study the Producers’ offer at AMPTP.org ”
I hope S.A.G. members will educate themselves somewhere besides the A.M.P.T.P. site. youtube actually has some simple and clear breakdowns of what the contract means if you search that site for “sag strike”.
The short of it is through current technology advances TV will be delivered through the internet to your TV set in the next year and actors will receive virtually no residuals for film and TV reruns because that internet delivery makes what you watch on TV “New Media.”
They are playing actors for suckers.
Every indication is that the economy will be far worse in 2.5 years. Could we at least admit that the current economy will be the stronger of the two and that the next opportunity for negotiation without a weak economy as an argument will not occur for at least 5.5 years. Everybody want to wait until then? And again, no matter what, DO NOT sign that death warrant the moguls have put in front of you.
Take it from a WGA writer: our new media gains, while significant, will require future years of hard bargaining to ensure that we don’t lose billions like with the dreaded video and cable formulas. But we started the fight immediately because we knew we had to. The reality is that the companies and their AMPTP reps will FUCK YOUR UNION out of every cent they possibly can. I would strongly encourage every SAG member to consider what is best for you ten years from now and not just next year before you A) PUBLICLY rip your elected leadership in half, B) Declare that a recession precludes you from fighting for your rights as artists, and C) Trumpet the fact that a bunch of A-list actors (read: producers) have declared themselves anti-strike…even though the January vote is a strike AUTHORIZATION. And by the way, I love every crew that I’ve ever worked with, but you’re not selfish for going to the mat to protect your future earnings.
Wasn’t there a statement issued by the AMPTP that basically called out SAG leadership for not taking the proposal to the membership? It was almost a dare if I remember right. At that point I thought this would be a good move. It does show the AMPTP that the membership knows it’s crappy deal and that they won’t take it. It’s more a gesture than anything.
It seems to me that if the proposal is struck down by a healthy majority, and the AMPTP doesn’t go back to the bargaining table, SAG leadership can then go back to the membership and say the producers aren’t willing to listen to what you’re asking for. I think from there it’ll be easier to get a strike authorization passed.
Now the question is, will there be members who assume that vote to pass the contract without knowing that it is not endorsed by the negotiating committee and without reading/understanding it? I think there are people who might just vote yes because that’s what they think they’re supposed to do.
Don’t sign a contract. Wait 2.5 years and then strike side-by-side with the WGA. This has two benefits:
1. Breaks pattern bargaining the next cycle.
2. Eliminates the concern over “establishing” bad terms now.
The cost? A small, incremental “cost of living” revenue increase–far less than even a single day of striking would cost.
This is not hard people.