business representative

NY Times article on IATSE International benefit fund

November 27, 2011

Hollywood Labor Fight Looms as Money for Benefits Wanes

By MICHAEL CIEPLY

LOS ANGELES — Bitter disputes over health and pension payments to union members have created plenty of drama in states and cities this year. But do not look for a movie about it — Hollywood will be too busy dealing with a labor crisis of its own.

After three relatively peaceful years, the entertainment industry is bracing for a showdown next spring. At issue is an enormous projected shortfall in financing for some of the most jealously guarded perks in show business, the heavily gilded health and pension plans.

No one is talking of a strike yet. In fact, no one with official standing is talking publicly. Leaders of the industry’s craft and blue-collar unions and officials of the Alliance of Motion Picture and Television Producers, which represents the studios and other production companies, have all declined to discuss what will happen when several contracts expire July 31.

But in town hall meetings over the last two months, union leaders have told members that weak industry economics, a tough investment climate and, above all, sharp increases in health care outlays are expected to create a $500 million shortfall by 2015.

“We’re going to be asking for money, lots of it,” Matthew Loeb, the president of the International Alliance of Theatrical Stage Employees (I.A.T.S.E.), told a gathering at the union’s Local 80 here in late September. His union represents about 50,000 set designers, makeup artists, grips and other film workers.

To put things in perspective, the contract that in 2008 settled a three-month strike by Hollywood’s writers was estimated to include total pay and benefits increases of less than a third that amount over three years. A subsequent, hard-fought three-year deal with the Screen Actors Guild, with about 120,000 members, cost the companies only about $250 million. One person involved with the pension and health plans, who spoke on condition of anonymity because of the delicacy of the situation, called the looming half-billion dollar shortfall “staggering.”

The workers represented under the stage employees’ contracts have been known more for making deals than picking fights. In years past, the union might have been at the bargaining table a year before the contract deadline; this time talks may not start until spring. The last full-blown craft strikes occurred more than a half-century ago, and involved a different configuration of unions; Hollywood’s Teamsters, the other major union headed for a 2012 showdown, have not staged a major strike since 1988.

But the current situation is volatile, partly because the Teamsters and some allied unions who share health and pension plans with I.A.T.S.E. aligned the expiration of their contracts with those of the larger theatrical workers alliance by shortening their last contract cycle to two years.

This time, those unions are expected to bargain jointly on health and pension issues. A walkout would instantly stop film and television production in the Los Angeles area, and would affect production in New York and elsewhere, because editors, camera crews and some others are represented on a national basis.

Hollywood’s guilds largely resolved their health and pension problems, at least for now, in several agreements over the last year or two. But the craft workers and other film laborers got caught in a whipsaw that involved the financial markets, changes to federal health care law, and some features that are peculiar to the financing and benefit structure of their plans.

In some ways, Hollywood’s blue-collar health plans are more generous than those covering actors, writers and directors, who are usually regarded as being higher in the pecking order.

At the gathering in September at Local 80, John Garner, a health care consultant with Levey, Garner & Isaacs, told I.A.T.S.E. members their plans matched or exceeded those of the guilds and others in deductibles, office visit co-pays, member contributions and other measures.

One chart showed that entertainment industry workers pay just $300 as a median per person deductible for services from a preferred provider group. But those in the plan covering craft workers and Teamsters pay no deductible for the same services.

Such generous coverage has come at a cost. The craft workers contribute their residuals payments from the rebroadcast of films on television and elsewhere to their benefits plans, while guild members typically receive the residuals as cash. At the same time, the blue-collar workers for years have been draining an enormous cash reserve in their own plans — once enough to finance 30 months of benefits — to meet outlays that have increased as the population has aged and more sophisticated medicine has raised costs.

But what advisers had said was a surplus in the reserve is almost spent. Investments never quite recovered from the market collapse of 2008. Hollywood’s residuals payments flattened as the DVD boom ended. Meanwhile, federal health care legislation required plans to cover children to the age of 26, and eliminated lifetime coverage maximums.

It added up to what David Wescoe, the executive administrative director for the health and pension plans for the craft and blue-collar unions, told union members was “a very dicey picture for the next three-year cycle.”

Speaking at Local 80, he put the pension financing shortage at $190 million. Increased health expenses, he said, would require an additional $180 million to stay even with current benefits. About $75 million would be needed to keep the reserves at a safe level of six to eight months. And falling contributions, if industry economics remain soft, will also hurt.

To some extent, the size of the shortfall may be affected by the decisions of the Supreme Court, which will hear oral arguments on a challenge to the federal health care plan in March. “It’s in their hands,” read the legend of a photo of the justices in Mr. Wescoe’s presentation in September.

But even if the court were to overturn the new law, something must give when the companies and unions meet. “To leave it the way it is today, we need half a billion dollars,” Mr. Loeb said.

Intiman Theatre Outlines New Model for Comeback in 2012

Intiman Theatre Outlines New Model for Comeback in 2012

2011 Subscribers Offered Complimentary Tickets

Intiman Theatre today announced plans to relaunch the theatre in 2012 for its 40th season. Artistic Director Andrew Russell will lead Intiman in producing a four-play summer festival season curated from the ideas of a collective of local artists and performed by a repertory company of 12 local actors. Additionally, Intiman Theatre’s Board of Trustees has outlined steps to ensure continued operation in the theater space at Seattle Center; an operating budget of one million dollars for the 2012 season; a collaboration with local artists and organizations; and a fundraising plan to make this vision a reality.

“During months of engaging artists and audiences on the subject of Intiman’s future, one point echoed loud and clear: we must try something new. If we’re going to commit to a significant amount of work, not to mention fundraising, Intiman must be fresh, forward thinking, different and worthy of a relaunch,” said Andrew Russell, Artistic Director of Intiman Theatre.

ARTISTIC VISION

“The collective represents Intiman’s commitment to local artists interested in challenging and groundbreaking work that will resonate in and outside of Seattle,” said Russell. The collective includes a multi-disciplinary group of talented directors, actors, writers, choreographers, activists, organizations and musicians. These artists include:

  • Donald Byrd (choreographer, director)
  • Valerie Curtis-Newton (director, educator)
  • Sheila Daniels (director)
  • Nick Garrison (actor)
  • Jose Gonzales (actor, musician)
  • Yussef el Guindi (playwright)
  • Marya Sea Kaminski (actor, writer, educator)
  • Etta Lillienthal and Ben Zamora (visual and performance design team)
  • Ludovic Morlot (conductor, music director)
  • Allison Narver (director)
  • Michael Place (actor, director, producer)
  • Queer Teen Ensemble Theatre (local theatre program for LGBTQ youth)
  • Dan Savage (director, writer, activist)
  • Tommy Smith (playwright)
  • Olivier Wevers (choreographer)
  • Richard E.T. White (director, educator)
  • Robertson Witmer and the band “Awesome” (sound designer, band)
  • Jen Zeyl (designer)

This collective is unified by its commitment to five core values central to Intiman’s artistic vision as we move forward:

  • Cultural diversity in artists and audience.
  • Local artists addressing global concerns.
  • Cross-pollination of the performance arts.
  • Provocative and inventive storytelling.
  • Cultivating an artistic home for artists, using the institution to support the artist.

The four plays selected by this collective for production in 2012 will provide a mix of classic work done with a twist, world premieres that are challenging, epic and thoughtprovoking, multi-disciplinary work incorporating dance, music and theatre, and work that connects the local with the global. Productions will also be designed to take advantage of the theater’s unique space at Seattle Center, including the studio space and courtyard areas.

Shows under consideration for the 2012 summer festival include:

  • a vibrant production of Shakespeare’s Romeo and Juliet, adapted to the Palestinian-Israeli conflict directed by Allison Narver;
  • Henrik Ibsen’s Hedda Gabler, which bursts open in dance, directed by Andrew Russell and choreographed by Olivier Wevers, starring Marya Sea Kamanski;
  • a new outlandish production conceived by Dan Savage; and,
  • Valerie Curtis-Newton directing a play in two acts split between the studio theater
    and courtyard.

The plays will be performed in repertory by 12 local actors. Artistically, this is challenging and fulfilling for performers, and benefits the theatre community at large as it allows the acting company to deepen their craft. For audiences, the repertory company means the pleasure of returning to see diverse performances from the same artist and an investment in the development of individual artists. “What a treat it will be for our audiences to see some of Seattle’s best performers tackle back-to-back everything from Shakespeare to new-work,” said Russell.

“The trustees are proud to champion the work of these artists in this unique programming model,” said President of the Board of Trustees Terry Jones. By launching a theatre-festival curated from the impulses of local artists, performed by a repertory company, in a model that is sustainable and flexible, Intiman intends to break new ground while honoring its 40-year history.

After much discussion and deliberation, the Board of Trustees chose Andrew Russell to lead the relaunching of Intiman under this new model. “We are excited by Andrew’s vision, are confident in his capacity to deliver on it, and believe in the board’s capacity to work with him effectively to achieve the maximum intersection of artistic excellence and financial viability.”

Another element of artistic vibrancy of the new Intiman model is collaboration with Cornish College of the Arts. In 2012, Intiman Theatre will work with Cornish to provide internship and other educational service opportunities to enrich the local arts community and provide expanded opportunities for local artists to learn or teach their crafts.

MANAGEMENT OVERSIGHT

To deliver this new artistic model, along with Andrew Russell’s artistic leadership, the board of trustees has restructured the management of the theatre from financial controls to governance and oversight. There is a strong commitment to ensuring that the operational side of the theatre is managed with discipline and transparency. The Board will implement a new strategic business plan; operate with increased financial controls and oversight; and collaborate with other leading arts organizations and artists.

As a part of this shift from plan development to program implementation, the Board of Trustees elected Terry Jones as its new president. With a strong operational and financial background, Jones is ideally suited for the implementation phase of the new Intiman. Jones follows Bruce Bradburn who saw the board through the development of this new strategic business plan.

“In the past six months, we listened to artists, audiences and donors; reconciled and audited our books; implemented financial controls; made payments to reduce our debt; explored artistic and business options; reached out to potential collaborators; and worked with consultants to identify our path forward,” Jones said.

“We recognize that the buck stops here, and we sincerely apologize that Intiman’s business side went so off course,” said Jones. “We are correcting our course. The Board of Trustees is committed to stewardship and smart leveraging of Intiman’s resources to support and realize this exciting artistic vision for the benefit of the community.”

In the 2012 plan, Intiman Theatre is acting in response to what it has heard from artists, audience members, subscribers, patrons and the public at-large and developed in analysis of non-profit theater models, artistic visions, needs, financial resources, and opportunities. The new Intiman is:

  • Not spending money we don’t have. Intiman will not produce a single 2012 show until we raise or obtain pledges for 2012 contributions sufficient to cover all 2012 expenses. When we reach our goal, we will collect on pledges and release escrowed funds.
  • Honoring 2011 subscribers with complimentary tickets to our 2012 season. We intend to offer our season subscribers, on whom we closed our doors, complimentary tickets. “We owe our subscribers this, and we owe them the opportunity to see what a revitalized Intiman can be,” said Jones. “We hope this will -4- excite them enough that they will come back to support us in future years.”
  • Empowering and enriching local arts through increased collaborations. The collective and repertory company and the educational collaboration with Cornish College of the Arts will make good, local use of Intiman’s fiscal and artistic resources.
  • Taking responsibility and implementing stronger oversight. The board took what it heard in the planning process and is implementing the management controls recommended by its consultants and auditors. New leadership and board members will set the new course.
  • Planning with deliberation and care to produce vibrant plays and pay off debt. The retooled and artist-focused business model combined with a tailored budget, close board oversight and cost containment measures will enable delivery of dynamic theatre while we continue to retire Intiman’s remaining debt.

“The Intiman board and some stalwart friends have worked tirelessly to develop a plan that is viable, reflective of Intiman’s excellent artistic reputation, and deserving of the community’s support,” said Susan Trapnell of Arts Consulting Group, Inc., management consultant to Intiman Theatre.

FUNDRAISING

“The Board believes the planned 2012 summer theatre festival will continue Intiman’s tradition of delivering thought-provoking and engaging theatre to this community,” said Sue Leavitt, co-chair of Intiman’s fundraising and development committee. “But, this plan will only be realized if Intiman’s patrons, audience members and community, corporate and foundation supporters come alongside the Board to provide the necessary resources.”

Intiman has already raised twenty percent of its one million dollar operating budget to produce the summer festival–$100,000 from board pledges and an anonymous gift of $100,000 to jump-start the campaign.

Intiman has also been paying down its debt and talking to its vendors to develop payment plans. The board will continue to work with vendors and donors to settle Intiman’s remaining debt.

The 2012 season will be Intiman’s 40th and the summer festival will coincide with the Next Fifty Seattle Center celebrations.

Update on test for City of Seattle intermittent stagehands

The 34 people who are scheduled for tests on November 16th have all been called by ‘phone. In addition, Mike D’Aberle reports that he has been able to secure an additional 26 slots, and a second round of tests will be given in mid-December.

The 26 people who will be tested in December have been contacted by email. If you have not received either a telephone call or an email, then you will not be tested at this time. However, Mike has also gotten a verbal commitment for additional slots to open up in the spring; so if you didn’t make the cut this time, you may be able to get a city card within another six months.

March for Medicare, Medicaid and Social Security

PLEASE NOTE: THIS POST HAD THE WRONG DATE FOR THE RALLY-  THE MARCH WILL BE ON SATURDAY, JULY 30TH, AS BELOW (NOT THE 23RD)

March for a Decent Future

on Medicare’s Birthday

No cuts to Medicare, Medicaid and Social Security

Saturday, July 30th, 12:00 n – 2:00 pm

Safeco Field (1st & Atlantic)

We’re facing an unprecedented attack on Medicare, Medicaid and Social Security – just at the point when our health care is most at risk.

Not only the right wing, but President Obama and some Congressional Democrats are talking about balancing the budget by raising the retirement age at which we can collect Medicare and Social Security, reducing benefits or eliminating cost-of-living increases and other mechanisms to place the burden for the national debt on working people.

Local 15′s membership has endorsed single-payer healthcare as the best solution for the problems that we’re facing in maintaining our own benefits, and extending affordable quality healthcare to all.

As with the hotel workers’ rally, let’s make sure that Local 15 has a visible presence at this action, part of a national campaign with rallies all over the country.  If you’re planning to come, please let me know (206-441-1515, ext. 225; stagerep@ia15.org) so that we’ll have enough Local 15 signs to show everyone that we’re in the house.

This event is sponsored by United for Single Payer-Seattle, Physicians for a National Health Plan-Western Washington, Health Care for All-Washington, and Washington State Alliance for Retired Americans.

Two important actions on July 22 and July 30

There are two important actions coming up that Local 15 members should support if possible.  There will be a separate post for the second rally, but on Friday:

Rally for Worker Justice at Seattle Luxury Hotels

Friday, July 22nd 4-6pm

Westin Hotel(1900 5th Ave, corner of Virginia, Seattle)

This rally is led by the members of UNITE HERE 8, the hospitality workers union. These workers have already staged one picket at the Westin. We will be joined by unions and members visiting and working in the hotel.

This summer, 1400 hotel workers whose union contracts have expired are joining together to fight for a better life. Most are workers of color, immigrant, women, or LGBT who are uniting to demand a share in the economic recovery that hotels have enjoyed.  They are trying to transform hospitality jobs into middle class jobs for themselves and many thousand yet to be organized workers.

During the recession, hotels protected their profits by cutting staff and increasing workloads for already overburdened workers. According to the industry’s own projections, hotels will be returning to record profit levels by 2012.

Background

Union contracts covering over 1,400 workers have expired in hotels and restaurants including the Westin, Edgewater, Seattle Hilton, Washington Athletic Club, Space Needle, SeaTac Hilton, and the Doubletree.

“Hotel workers can sometimes seem invisible,” says Erik Van Rossum, Secretary-Treasurer of UNITE HERE Local 8, the union representing the workers in the campaign. “They create luxury in Seattle’s hotels by cleaning the rooms, washing the dishes, and cooking the food, among other thankless jobs. But now they are standing up with one voice to demand respect and fairness.”

Local 15 is hoping to work with UNITE HERE Local 8 to encourage more Union AV work in the hotels represented by Local 8, including the Westin.  It’s important that we have a good showing with Local 15 signs, to let our sisters and brothers in Local 8 know that we support them! If you’re planning to go, please let BR Paul Bigman know (206-441-1515, ext. 225; stagerep@ia15.org) so that we’ll have enough Local 15 signs.

More pickets and rallies are planned including one  on August 4 at 4:30pm in SeaTac. Stay tuned for more details

For more information, contact Jasmine Marwaha of Local 8 at 206-470-2993