Here is the AMPTP's new "message" about the 2008 SAG negotiations:
June 12, 2008
The AMPTP has been negotiating with SAG for a total of 28 days since April 15, 2008. We are frustrated and discouraged that on June 12, with 18 days left in the month, SAG's Hollywood leadership is already saying that it's unlikely a deal will be made by June 30th. We hope that this statement does not signal the intention of SAG's Hollywood leaders to bring our industry to a halt. We remain committed to working as hard as we can to reach our fifth labor agreement of 2008 by June 30th.
To date, our SAG negotiations have been unsuccessful for three reasons:
-- First, while we have made some progress with SAG, we are still far apart on fundamental issues. Since resuming these talks on May 28th, we have continued to provide additional information to SAG on subjects that have already been comprehensively discussed throughout these negotiations. We remain committed to making a fair and reasonable agreement before the June 30th deadline and are pushing ahead despite the rallies, meetings and events to which SAG's Hollywood leadership has recently devoted considerable time and energy (often during hours that are usually reserved for negotiations). Unfortunately, these side-shows -- distractions which SAG's Hollywood leaders appear committed to perpetuating - will not help our industry reach our fifth 2008 labor agreement by June 30th. We hope that SAG will focus on making a deal with us rather than diverting its energies to interfering with the affairs of a fellow union.
-- Second, although SAG has said that it was willing to work within the industry's now well-established new media framework, inside the negotiating room SAG's Hollywood leaders have continued to propose many changes to the framework -- some of which would go a long way toward making the framework itself unworkable. The Producers' position has been that there is no valid reason to upend the new media framework that has already been accepted during four other separate negotiations this year.
-- Third, SAG's Hollywood leadership has continued to demand increases in traditional media compensation that would result in enormous additional financial burdens. The SAG Basic and TV Agreements are mature labor pacts for mature businesses. In such circumstances employers in other industries typically negotiate reductions and efficiencies to reduce costs. We are not seeking to do this, and have instead proposed fair and reasonable economic increases that have already led to agreements in 2008 with DGA, WGA, AFTRA Network Code, and AFTRA Exhibit A.
In short, the AMPTP remains committed to avoiding another harmful, unnecessary strike and to reaching another equitable and forward-looking labor agreements - just as we have done four other times already in 2008.
The recent and highly public complaints of SAG's Hollywood leaders about the negotiating process are, to say the least, perplexing. On February 14, 2008, immediately after a deal was struck with the WGA, ending its strike, AMPTP invited SAG to begin early contract talks. Two weeks later, on February 28, 2008, SAG's leadership said it would not be ready to begin formal negotiations until sometime after March 31st. SAG's Hollywood leadership has long advocated a preference for last-minute bargaining and, as such, there are no grounds for them to complain that they are now the last Guild at the table. If SAG's strategy of eleventh-hour negotiations has backfired, it was a risk the Hollywood leadership knew it was running.
Furthermore, any effort by SAG to drag out these negotiations past June 30th would be a disservice to the people in this industry whose livelihoods are being put on hold. SAG's inability to close this deal has already put the industry into another de facto strike, limiting the greenlighting of features and disrupting pilot production. Unfortunately, SAG's Hollywood leadership and its allies continue to express a cavalier attitude about the consequences of a potential strike for below-the-line workers, SAG's own members and its sister Guilds in particular and our economy in general. As the recent Milken Institute study noted, the WGA strike caused a $2.3 billion decline in wages and salaries, the loss of 37,700 jobs, and helped push California into a recession.
People throughout our industry were astonished to hear a SAG board member at SAG's anti-AFTRA rally publicly compare the economic situation of actors with the situation faced by workers who seek day jobs by standing in front of Home Depot stores. This careless statement, of course, flies in the face of basic facts about actors who work in our industry:
-- The Producers increased minimum payments in the labor agreements recently reached in the WGA, DGA, AFTRA Network Code, and AFTRA Exhibit A negotiations. These minimums increased more than the average annual rate of inflation over the last 17 years (since 1991). The lowest paid actor is currently guaranteed a minimum of $759 for an 8-hour day and double time of $190 an hour after 10 hours - and annual increases of these rates are on the table.
-- SAG members - even ones that do not work regularly - receive pension and health benefits that would be the envy of middle class Americans. For example, SAG members need only earn $28,120 per year to qualify for the top tier Health Plan I. By SAG's estimate, that can be accomplished with less than two months of work. Health Plan II requires only $13,790 to qualify.
-- Overall earnings for actors are increasing:
* Theatrical earnings and residuals rose to $596,437,362 last year, up 6% last year over 2006 and up 24% since 2003.
* Television earnings and residuals rose to $705,032,281 last year, up 1.2% over 2006 - notwithstanding lost earnings due to the WGA strike - and 9% since 2003.
* And even these figures understate the overall compensation increases because the figures are capped for reporting purposes to the Screen Actors Guild - Producers Pension and Health Plans and thus do not reflect total actor earnings from overscale deals, participations, and so forth.
* Within the entertainment industry itself, cast costs rose at more than twice the rate of overall production costs between the 2000-01 television season and the 2007-08 season (using one network as an example). Total cast costs rose 78.4% during this period. The cost for principal cast members rose 80.1%, and the cost for non-series regulars rose 69% -- compared to a 33.6% increase in overall production costs.


This really adds nothing, but as an IATSE below-the-line member who understands all sides of these negotiations, from what’s at stake and what’s being offered and set against our current economy (while assuming that things will get better at some point), I still must say that, in this matter, I side with the AMPTP. SAG is performing like Hillary Clinton during her failed run for office. They’ve done everything wrong, and now it’s time to accept reality and move on and not screw around with the hundreds of thousands of others who have seen the light.
Let me get this straight: The group that walked out of the WGA negotiations for TWO MONTHS ’til it could cherry-pick talks with an acquiescent company union, keeping the entire industry shut out of work that entire time, is complaining about SAG’s “delaying tactics?”
What a crapload of distortions!
As an Actor, I’ve made a career out of ” living in the moment”, but I gotta tell ya, I am really looking forward to 2009. This has been an obviously will continue to be a crap of a year.
Oh, and for the IA and BTL cats who compare an Actors contract and labor neg. to theirs. NEWS FLASH! Getting a job as a gaffer on a TV set and a job as an actor on a TV set is about as similar as George Bush and Barack Obama.
Remember the blackout between AMPTP and WGA… and who broke that to get their side out first! Really those producers would almost be clever if they weren’t so transparent and unethical. I guess this stuff worked before the internet.. but now that we all access to massive information… we just see them for what they are – liars and thieves. I am rooting for the day talent gets beyond the little men. It’s coming and they know it. I love that they live in fear.
Truly this comes as a surprise, because there has been no pattern of negotiating on the AMPTP’s part. Truly all they want is what is good and fair.
I love the appeal to the “little people” with the part about good ol’ middle class Americans. The AMPTP has about as much in common with the middle class as they do with a turnip … yet SAG, the vast majority of whose members are middle class, are supposed to suffer in comparison because of their health insurance?
I don’t know if this kind of transparency works in other countries but sadly it does in America. In our time-honored tradition of placing the interests of giant corporations above those of our living breathing citizens, I have little doubt that a large chunk of good ol’ middle class Americans will blame the greedy middle class actors rather than the billionaires behind AMPTP.
And there goes Writer Bob again. His description of the AMPTP release is unfortunately accurate – in reference to his own post.
His description of the DGA as “an acquiescent company union” is yet another reflection of the argument he lost here four months ago. It is regrettable that he has been unable to learn from this and move on.
The reason cast salaries contract and non-contract roles are up is because average super talented “non-star” ACTOR ROLES are all going to burned-out-haven’t been heard from in a decade- ex-movie star names, even for the smaller co-starring roles, etc. If the AMPTP wasn’t so focused on “star names” for every single part in every single project then real actors, who have had to carve a living out of this ever- consolidating madness could actually compete for a decent role.
P.S.
The big pig budget packaging agencies don’t help.
STAND STRONG OR OUR UNIONS ARE DEAD.
In their statement the AMPTP says “although SAG has said that it was willing to work within the industry’s now well-established new media framework….” Let’s set aside the first part of this statement, because from everything I’ve heard, SAG and the AMPTP have very different definitions and understandings of this framework, and focus on the latter part of this statement.
I have been in discussions recently with sincere and well-meaning people, people who hold the same fundamental values of good unionism as me, but who believe that the sunset clause for the New Media exemption in the AFTRA contract is something the AMPTP will sincerely honor when it comes time to revisit this issue in less than three years.
I have maintained first off that any union agreement which sanctions the non-unionization of any labor which has been historically 100% union when performed for signatory companies under the auspices of a collective bargaining agreement constitutes a fundamental violation of the very principles upon which the union was founded, and must be rejected out-of-hand.
In allowing the moguls to fund non-union principal acting roles in low-budget New Media productions – that is, if you consider up to $500,000 a “low” number – the proposed AFTRA agreement does just that. Why any AFTRA leader who has any understanding whatsoever of unionism would negotiate such a deal is well beyond me.
As I am in “must-join” status with AFTRA and do not vote on this deal, I could simply take the attitude, it’s their problem. If they want to sink their union into a laughingstock of irrelevance, so what?
But of course, AFTRA isn’t just any union. AFTRA represents artists – actors, musicians, singers, dancers, so on – and it is difficult to bear the thought that these artists would even consider turning their profession into a hobby.
AFTRA isn’t the only union representing actors, musicians, singers, dancers, stunt people, and other performing artists on television and apparently now in New Media. They have chosen to compete with the Screen Actors’ Guild by cutting deals with the moguls at the expense of their talent. They make their union more attractive by making their talent cheaper for the moguls.
Everything AFTRA has done through this entire negotiation process does directly affect SAG, and of course vice versa. Now if SAG were the union presenting its members this egregious deal, my criticism would be directed at SAG. But that’s not where we’re at.
In my discussions with people who favor the AFTRA deal, they have cited for me the sunset clause. Nothing in the New Media provisions of this contract is permanent, the argument goes, because both sides have agreed it’s up for renegotiation in less than three years. History is not on that side. DVD residuals are to this day a huge – as in $20-25B gross revenues – issue. The moguls promised to revisit VHS early on. Never happened. They promised to revisit DVD. Now it’s a total non-starter for them.
The same will be true of New Media, and you have it from the horse’s mouth. “Well-established new media framework”, the AMPTP says. I take them at their word. They also say, “The Producers’ position has been that there is no valid reason to upend the new media framework that has already been accepted during four other separate negotiations this year.” Of course they’re saying that. They manipulated the DGA and WGA into accepting non-union directors and writers for low-budget New Media projects, and they’re working on the AFTRA membership right now. The camel’s nose is in the tent!
What SAG and AFTRA establish this year, separately or together, is it. If AFTRA accepts its signatory companies funding non-union contracts, those companies are never ever going to roll back on that without a bruising strike that will cost them and the overall economies of LA and New York tens of billions of dollars. Anything short of that, and the moguls will happily weather it to keep their gains. Think I’m wrong? The moguls put the writers’ backs to the wall, forced a $2B strike, and STILL blame the writers for it.
If we take the AMPTP at their word, then clearly AFTRA members have no choice but to reject the AFTRA deal, send AFTRA’s leadership back to the table with a clear mandate to negotiate a deal for the actors that keeps every signatory principal acting job for every stream of distribution at any budget level a UNION job. Anything less, clearly, from the implications of the AMPTP’s own public pronouncements, is professional suicide.