🎬Creative Producing I Unit 14 – Industry Regulations and Unions in Film

Key Industry Regulations

• The National Labor Relations Act (NLRA) guarantees the right for private sector employees to organize into trade unions, engage in collective bargaining, and take collective action such as strikes
• The Fair Labor Standards Act (FLSA) establishes standards for minimum wages, overtime pay, recordkeeping, and child labor
  • Ensures workers receive at least the federal minimum wage for all hours worked
  • Requires overtime pay for hours worked over 40 in a workweek at a rate of 1.5 times the regular rate of pay
• The Occupational Safety and Health Act (OSHA) requires employers to provide a safe workplace free from recognized hazards
  • Includes industry-specific regulations for film production covering areas like electrical safety, fall protection, and hazard communication
• State and local laws layer additional requirements on top of federal regulations (minimum wage laws, sick leave ordinances)
• Union contracts establish additional terms and conditions of employment for covered workers that exceed legal minimums (wage scales, working conditions, fringe benefits)
• Copyright law grants exclusive rights to creators of original works including screenplays, motion pictures, and other audiovisual content
• The Directors Guild of America (DGA) Basic Agreement includes provisions limiting the ability to replace directors and providing creative rights

Major Film Unions and Guilds

• Screen Actors Guild - American Federation of Television and Radio Artists (SAG-AFTRA) represents actors, announcers, broadcast journalists, dancers, DJs, news writers, news editors, program hosts, puppeteers, recording artists, singers, stunt performers, voiceover artists and other media professionals
• Directors Guild of America (DGA) represents directors and members of the directorial team (assistant directors, unit production managers, stage managers, associate directors, production associates)
• Writers Guild of America (WGA) is comprised of WGA West and WGA East which represent writers in film, television, news, animation, documentaries, and new media
• Producers Guild of America (PGA) represents producers, executive producers, co-producers, supervising producers, coordinating producers, line producers, segment producers, production managers, and visual effects producers
• International Alliance of Theatrical Stage Employees (IATSE) represents various below-the-line crew members and craftspeople (camera operators, grips, gaffers, prop makers, set painters, costumers, makeup artists, sound technicians, editors, script supervisors, production coordinators, art directors, and more)
• International Brotherhood of Teamsters (IBT) represents drivers, location managers, casting directors, animal wranglers and handlers
• American Federation of Musicians (AFM) represents instrumental musicians, singers, and conductors working in film and television

Historical Context of Labor in Film

• In the early days of cinema, film production was unregulated with poor working conditions, long hours, and inconsistent pay
• The formation of unions in the 1930s, such as SAG in 1933, marked a turning point in establishing better working conditions and compensation for film workers
  • The National Labor Relations Act of 1935 bolstered union organizing by protecting the right to collective bargaining
• Strikes and labor unrest in the 1940s led to the Taft-Hartley Act of 1947 which restricted some union activities but also enshrined the right to collective bargaining
• The Hollywood Black List era of the 1950s saw many union members targeted for their alleged communist sympathies, weakening labor's power
• The rise of television production in the 1950s expanded work opportunities but also created new labor challenges around residuals, reruns, and typecasting
• The emergence of independent producers and packaged deals in the 1960s and 1970s shifted power dynamics between studios, talent, and unions
• Union concessions and the growth of non-union production in the 1980s and 1990s coincided with rising production costs and increased outsourcing of jobs
• Labor unrest in the 2000s centered around DVD residuals, reality TV, product integration, and new media compensation

Union Contracts and Agreements

• Collective bargaining agreements (CBAs) are negotiated between unions and employers to set the terms and conditions of employment
  • Union contracts cover minimum pay rates, working conditions, fringe benefits, and grievance procedures
  • Agreements are typically renegotiated every three years, though some have longer terms
• The SAG-AFTRA Codified Basic Agreement and Television Agreements establish day rates, weekly rates, and residuals formulas for performers
  • Residuals are ongoing payments to performers for reuse of their work in secondary markets (streaming, syndication, home video)
• The DGA Basic Agreement and Freelance Live and Tape Television Agreement specify minimum salaries, creative rights, and residuals for directors
  • The DGA underlined the importance of "one director to a picture" and the right to a "Director's Cut"
• The WGA Minimum Basic Agreement (MBA) covers minimum compensation, credit determination, creative rights, and residuals for writers
  • The WGA MBA gives writers the right to participate in the credit determination process to resolve credit disputes
• IATSE term agreements and the IATSE Area Standards Agreement (ASA) outline wage scales and working conditions for below-the-line crew
  • Low budget agreements allow for reduced rates on smaller productions to encourage union work
• The Basic Crafts Unions each have their own agreements that are negotiated separately from the IATSE term agreements
  • Basic Crafts Unions include Teamsters Local 399, IBEW Local 40, LiUNA! Local 724, and Studio Utility Employees Local 724

Impact on Production Budgets

• Union contracts establish minimum pay rates that form the basis for budgeting labor costs on union productions
  • Union scale rates vary by job classification, budget level, and type of production (feature film, TV, commercial, new media)
• Fringe benefits required under union contracts add significant labor costs beyond base wages
  • Fringes include payments for pension and health plans, payroll taxes, vacation and holiday pay, and other contributions
  • Fringe rates are calculated as a percentage of gross wages and can add 25-40% on top of base pay
• Overtime, night premiums, meal penalties, forced calls, and other penalties required by union contracts can significantly increase labor costs
• Residuals payments to union members for reuse of their work are an ongoing cost that must be budgeted based on the applicable formulas
  • Residuals can be a substantial line item for projects with strong aftermarket potential in secondary distribution channels
• Union staffing requirements specify minimum crew sizes and positions that must be filled, limiting a producer's flexibility
• Paying union rates and benefits can be cost-prohibitive for low-budget independent films, leading some to shoot non-union

Rights and Protections for Film Workers

• Union contracts secure various rights and protections for members that go beyond the legal minimums afforded to all workers
• Unions establish minimum wage scales to ensure members are fairly compensated and to prevent downward pressure on wages
  • Step increases in pay rates reward experience and seniority
  • Penalties for violations of minimum pay rules help enforce compliance
• Work rules around maximum hours, mandatory breaks, and turnaround time between shifts promote safe and humane working conditions
  • Meal penalty payments incentivize productions to properly feed crew and talent
• Unions secure employer contributions to pension and health plans to provide retirement and medical benefits for members
  • Portable plans allow workers to earn benefits while working for multiple employers across various projects
• Many union contracts include grievance and arbitration procedures to resolve disputes and protect members from unjust discipline or termination
• Anti-discrimination clauses in union contracts prohibit discrimination and harassment based on protected characteristics
• Unions provide members with access to training programs, career development resources, and networking opportunities
• Some union agreements restrict the use of non-union workers or subcontracting to protect jobs and maintain standards

Non-Union Productions: Pros and Cons

• Non-union productions are not bound by the wage scales, fringe benefits, work rules, and staffing requirements of union agreements
  • This gives producers greater flexibility in budgeting and scheduling but may result in lower pay and fewer protections for workers
• Non-union shoots can hire any performer or crew member regardless of their union status
  • This opens up a wider pool of talent but also enables the undercutting of union standards
• Producers can realize significant cost savings on labor by shooting non-union, making it attractive for low-budget projects
  • However, non-union workers may be less skilled or experienced, which can impact the quality and efficiency of the production
• Non-union sets are not subject to the same safety standards and oversight as union productions
  • This can lead to cutting corners and increased risks of accidents and injuries
• Working non-union can provide a pathway for new entrants to gain experience and credits to later qualify for union membership
  • However, it can be challenging to transition to union work once pigeonholed as non-union talent
• Some high-profile actors and directors work non-union to participate in passion projects or support emerging filmmakers
  • However, union members can face disciplinary action for working on non-union productions
• Non-union productions may have more flexibility to innovate with new technologies and workflows
  • However, they may also lack the standardized protocols and labor stability that comes with union contracts

Future Trends in Film Industry Labor

• The growth of streaming platforms and digital production is changing the landscape of film and TV work
  • Unions are negotiating to secure fair compensation and benefits for members working in new media and on evolving distribution models
• The increasing globalization of film production and rise of foreign tax incentives is leading to more "runaway production" outside of traditional entertainment hubs
  • Unions are advocating for measures to keep jobs in the U.S. and to organize workers at international locations
• The gig economy and use of independent contractors is becoming more prevalent in the entertainment industry, raising concerns about worker misclassification
  • Some unions are pushing for legislation and enforcement actions to ensure workers are properly classified and receive employee protections and benefits
• Calls for greater diversity, equity, and inclusion in the entertainment industry are shaping hiring practices and storytelling
  • Unions are partnering with studios and advocacy groups on initiatives to increase opportunities for underrepresented groups both in front of and behind the camera
• The COVID-19 pandemic has accelerated changes in the industry, from remote work to virtual production technologies
  • Unions are adapting to these changes and negotiating safety protocols, compensation structures, and job training programs to support members
• Labor unions are exploring new organizing strategies and partnerships to build power and maintain solidarity in a rapidly evolving industry
  • This includes increased coordination between unions, alliances with social justice movements, and engagement with rank-and-file members
• Emerging technologies like artificial intelligence, virtual reality, and blockchain are poised to disrupt traditional film production and distribution models
  • Unions are monitoring these developments and seeking to proactively shape their impact on members' work and intellectual property rights