As we wrapped up Part One of this series, NED Doug Allen talked about the AMPTP’s Boulders blocking a deal between SAG and intransigent employers.
After talking about ad supported streaming where the AMPTP wanted the right to rerun network shows on the internet where scale actors get 23 dollars for the first year, and series regulars get a whopping 105 dollars for the first years use, he talked about non-negotiable, unfettered use of clips for which the actor, would get between 25 and 75 dollars.
He then talked about employers proposal that would allow them to do new content on the internet non-union which would include union actors working with non-union actors, he continued with other AMPTP boulders blocking the road to a deal.
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Another part of the new media road block; He explained that for the most part, what managements proposal would mean is that there would be NO residuals for new content for the Internet.
They said we can’t share now, but we’ll share later. (Hmmm, I can’t be sure but it seems that they have said that before,) He continued that very few of the DGA/WGA proposals work for actors. And if this is an experiment, as management keeps describing it, then let’s make it an experiment in a way that protects actors. (Thunderous applause)
Doug: We have an experiment that works for actors. A project bugeted up to a rate of about 2000 dollars a minute, would allow free bargaining of initial compensation, (P&H and residuals included,) and then above that level, SAG would have varying degrees of scale until the 15,000 dollar a minute threshold was reached. This is the same model that SAG has used in low budget films! By doing this, all productions would be done union. Otherwise, signatories would be making union and non-union productions of their choice.
Another Boulder: Product Integration. Actors would be involved with product integration, which didn’t move the story along. Actors should be asked, and not ordered with no chance to decline—and they should be paid to do it, if they choose to speak the line.
Product integration he pointed out limits actor’s commercial opportunities, and may put them in conflict with a product that they are currently endorsing. Or they may have a moral issue with pushing the product. He said that SAG is not arguing that product integration should not be done, it helps pay for some of these productions, and that is a good thing. SAG just wants to make sure that actors are treated fairly, and protected by the collective bargaining agreement.
Before wrapping it up, he had two more important issues that he wanted to discuss. One was DVD. He said management refused to improve a formula on DVD’s that was decades old, although at the time, they promised that there would be an adjustment that would fairly compensate actors. (It never happened.)
SAG’s initial proposal was that Producers get to keep 60 percent, instead of the 80 percent that they currently keep, before paying actors percentage out of the remaining 20 percent.
He added that SAG had come off that proposal, and SAG’s proposal now amounts to a 15 percent increase. (Basically, that means instead of getting a penny increase, up to 2 cents on the dollar, SAG would get a 15 percent increase on that penny that would be incorported into the P&H plan.) He said, SAG thinks that’s a fair way to get an increase with out disturbing the 80/20 formula that the AMPTP is fiercely holding onto. And, he added, SAG believes it would be an important way not to give up on the DVD issue. The fact is that there would be Billions and Billions of DVD dollars during the next 5 to 10 years before attrition diminishes DVD sales.
Final Big Boulder in the way of an agreement: It is Force Majeure. This was something that management brought to the negotiating table, without communicating ahead of time. Something that they were making a critical issue of. He thinks that it was a mistake on employer’s part, because of the fierce response of actors.
He explained that Force Majeure is something we’ve had for a long time in our collective bargaining agreement. It stipulates that if something happens out of actors control, like a strike by another union, that if actors contracts are not terminated then certain payments are due to the actors. For instance, half salary for the first five weeks. SAG has filed claims for the casts of over 80 shows, and management has denied those claims. (Surprise! Surprise!)
Those claims are currently in arbitration on behave of those casts. (Hey, those of you who would choose your agent over your union, I’m sure if SAG hadn’t stepped in on behalf of those actors, their agents would have done so. You think?) 
First management wanted SAG to eliminate Force Majeure from our bargaining agreement. SAG rejected that, and said that we were not interested in discussing it! (More Applause)
They want to eliminate Force Majeure because it is a tremendous liability, more than 
TEN MILLION DOLLARS A COMPANY. He added that they wanted SAG to completely withdraw those claims--and SAG certainly was not going to do that! (More Applause)
Finally, Doug stated, that SAG believes they can close the gap on traditional media, but SAG can’t ignore the boulders the AMPTP has put in the way of an agreement. SAG has to resolve those problems through leverage not just debate.
The issues he reiterated are, DVD, new media issues including Clips, jurisdiction, and residuals for made for new media products, product placement, and Force Majeure.
He also wanted to say that we aren’t as far apart as management has said we are. But that we need to create leverage for good faith bargaining on the part of management, so that we can get a fair deal for both sides.
According to Mr. Allen, SAG and management are scheduled to get back to the table May 28, if not sooner. We can go back and make a deal, he advised--but we can’t do it ALONE! Management has stonewalled on SAG’s economic package, and has refused to budge on new media issues.
He asked members to stay informed, stay involved, and talk to fellow actors, and have confidence in their negotiting team; staff and elected leadership! Together we will weather this storm and achieve an agreement that we will be proud of, and one that will be ratified by the members.
He then thanked the audience for attending the meeting and for their support.
He received a standing ovation with extended thunderous applause. 
Ah, okay, the Ol’ Dog is getting tired. Hey, you try and read my notes, Okay? 
Anyho’ I will try and finish up in Part Three with “Members at the Mike.” It was very interesting.
It’s post time. 
A.L. Miller SW Editor & Chief 
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