In an effort to balance the statements made by the Producers and echoed by “all the other Unions and Guilds” that SAG should settle because everyone else has agreed to new contracts, I am re-posting an article by Gary Dunham (ousted President of International Camera Guild 600). The I.A. agreeing to the increase in qualifying hours for health plan is something no one should ever have agreed to, period.
from Gary Dunham:
“If there is to be any substantive discussion (and hopefully resolution)
on the issue of the increase of the Health Plan qualifying hours the
AMPTP has proposed and the IA negotiators have agreed to, there has to
be a firm understanding of the issues. Without understanding the MPIPHP
(the Plan) and how we arrived at the current proposals we cannot hope to
figure out a solution.
The Plan is run by trustees (directors) that are equally divided between
representatives of labor and management. That means we, the unions, have
50% ownership and control in running the Plan. Our trustees have been
sitting in meetings with the plans managers all along and not only knew,
but agreed to, the recommendation of cutting $260 Million in benefits as
well as increasing the qualifying hours to 400… The current Health Plan
proposals were not some off-the-cuff proposal sprung on the union
negotiators at the last minute. It came as a recommendation from the
Plan to help the funding of benefits.
The issue is funding the plan. The plan is funded in accordance to the
language in the Basic Agreement. At this moment there are four sources
of funding;
1. Contributions by production, on behalf of a member, on hours worked.
2. Residuals
3. Return on investments
4. ”Breakage” (This is a actual term used by the IA and the Plan to
refer to the money contributed to the plan on behalf of the members who
do not qualify for coverage. It is income to the Plan that the Plan
neither has to repay, nor use to provide benefits for the members in
whose name the funds are contributed.)
Another route to fully funding the Plan is to cut cost. Either operating
cost, or cost in the form of medical benefits covered.
Residuals have, historically, been the Lion’s share of revenue for the
plan. However in recent years those revenues have been decreasing. Since
the Studio’s have enjoyed greater financial success each and every year,
there should be an equal increase in the Plan’s funding. The only
logical reason the Plan has not seen the increase in funding through
residual payments is runaway production. The union trustees to the Plan
knew that runaway production would hurt the plans revenue. They had a
fiduciary duty to the membership to oversee the funding of the Plan and
make sure the producers lived up to the intent of the Basic Agreement.
(Continued health care for members and their families.)
The IA took a hard stand against the fight to end runaway production
without regard to the long-term consequences to the Health and Pension
plans. The leadership of the Basic Agreement locals promoted the IA’s
agenda against the best interest of their members.
During the 2006-9 Basic Agreement negotiations, when asked to accept a
$60 Million “savings” (elimination of benefits to the membership) to the
Plan, I asked if the trustees of the Plan had done a study to determine
the impact of runaway production on the Plans revenue. I was told that
such a study had not been conducted… I was stunned to say the least.
Now here we are again, three years later, only this time it is a $260
Million “savings” (reduced benefits to the membership) to the Plan AND
an escalation of the qualifying hours. This represents a huge difference
in Plan funding in only three years… (Because residuals are paid on
secondary market revenues, many years pass between a films release and
the receipt of residual payments by the Plan. It appears that we are now
seeing the full effect of runaway production on the Plan.)
The reasons behind the 400-hour qualification standard now becomes a bit
clearer. The IA and the AMPTP are about to tap into “breakage’ as a way
to shore up the funding for the Plan… Multiply the number of members who
do not qualify by the hours that they worked, (the number will increase
when the 400 hour provision kicks in) multiply that again by the amount
of hourly contributions, by the producer, … the total is the dollar
amount that the Plan will realizes every year in this macabre Ponzi
scheme. (Local 600 conducted a real survey of its membership during my
tenure and found that more than 30% of our members did not qualify for
health insurance. That was six years ago. If we assume that employment
rates are the same… big assumption… and local 600’s numbers are similar
to other unions… another big assumption… you can see the money can be
substantial.)
What kind of union would even consider, much less recommend, revoking
the health coverage of some of its members (and their families)
struggling to find work, to offset the cost of giving health coverage to
those regularly employed? What kind of union would? Apparently the IA
has no problem with such a scheme.
How on earth did we end up here? It’s because the “leadership” of the
unions are completely out of touch with the concerns of the membership.
Not only are they out of touch some prey on the members they are
supposed to represent. Take local 600 for example;
Plus or minus 6,000 members
Annual spent budget of about $8 million. (Not counting the $270,000 per
year we pay the IA to administer/negotiate the contract.)
Plus or minus 40 well paid staff members (including Health and Pension)
Annual Christmas parties… including petting zoos and clowns. (Sad but
true)
An Executive Director that makes $250,000 per year with a built in hefty
yearly percentage increase…. and a new car every year that cannot have a
price tag of LESS than $40,000 (the price of which increases at a hefty
percentage every year)… and first class travel…. and an unlimited
expense account… (Not that silly per diem stuff we have to live on)… and
a $750,000 term life insurance policy…
But the kicker… He doesn’t negotiate our contracts… The IA does!
(The real kicker is the elected Officers and Board of local 600 work for
free…)
Local 600 has its very own Marie Antoinette. Unfortunately local 600’s
business agent (Executive Director) is not the only example of union
leadership that is completely out of touch. It is important to
understand that most of those who represent you in negotiations do not
have to work under the contracts negotiated. It is up to the membership
(you) to make your representatives actually represent your interests.
But what if the contract is rejected? If the IA is sent back to the
negotiations table… what then? What’s the plan? Just to say 400 hours is
not acceptable could lead to disaster… i.e. massive co-pay attached to
the 260 Million “savings’… oops.
A membership without a working knowledge of the Basic Agreement will
never amount to anything more that sheep being led to the slaughter by
their Shepherd. It is the membership that must demand the terms and
conditions negotiated for them by their leadership. It should not be, as
it is now, the union leadership telling their members what has been
negotiated on their behalf, after the fact, while constantly lowering
the expectations.
Each and every one of you reading this should get their copy of the
Basic Agreement and read… and understand… Articles XII, XIII, XVII, XIX,
AND MOST IMPORTANTLY, XXVIII. It’s not that hard…
There are numerous ways to fund the Plan by negotiating the terms of
theses Articles. The argument for using these Articles is that, unlike
GM or Ford, funding the Plan with residuals is more akin to a profit
sharing plan. (If GM or Ford had profit sharing to fund their H&P they
would be in a lot better shape.) Understand that residuals are
calculated on profits realized in a secondary market… When the film is
sold for the second or third time…
For example, in Article XXVIII Supplemental Markets (b) (2) (ii) change
the 20% to 30%. That should eliminate the need for the increase in
qualifying hours AND greatly reduce the amount of benefit reductions
that make up the $260 Million “savings”. It will not unduly burden the
Studios with increases in budgets or greatly impact their backend
revenue. There are many different areas in the Post 60’s and
Supplemental Market clauses in the contract to look at to shore up the
funding of the Health and Pension Plan. None of them involve either
increasing operating cost to the producers or a decreasing benefits to
the members and their families. The leadership of the locals and the IA
have to get off their asses and do he work they are paid (well) to do!
(Or not. It’s all up to the members.)
As far as the responsibilities of the leadership of the individual
“Hollywood” Local’s go, their “let them eat cake” attitude should be
enough to inspire the membership to make the necessary changes.
Gary Dunham”