Member Referendum 2005 SAG Basic

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Member Referendum 2005 SAG Basic TV
Agreementsand AFTRA Exhibit A
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This presentation is constructed from several
presentations that were shown to the
TV/Theatrical Wages and Working Conditions
Committee, the Negotiating Committees as well as
the Joint Boards of Directors of SAG and AFTRA.
They have been updated as new data has been
attained and presented here to give you, the
voting member, the same information.
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Why Bargain in the Fall? Too early or not?

• Reality of production schedules has changed.
• Maximum leverage exists at the moment before
  producers prepare for a strike (stockpiling and
  reality) NOT when they have done so.
  
• Stockpiling causes producers to shorten schedules
  and compress work opportunities.
  
• Stockpiling creates a void of work after contract
  resolution remember the summer and fall of 2001.

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Key ObjectivesBased on Open Member Caucuses
Committees

• Single set of terms for television work at the
  highest level
  
• Funding of Pension and Healthcare
• Single set of terms for Background Actor work at
  the highest level
  
• Residuals, including DVD, Pay TV, Made for Basic
  Cable

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Landscape of American Labor

• Anti-labor administration
• Last year private-sector workers in unions fell
  to 7.9 percent from 8.2 percent - lowest since
  1900's.
  
• Grocery Workers- No raises --only bonuses. New
  employees get 25 pay cut.
  
• NHL- Locked out. Imposing Salary Cap- Union
  proposed a 24 pay cut and was rejected.
  
• Airline Pilots- 15 cut 30 cut Terminated
  pension.
  
• Hotel Workers- Working without a contract.

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Landscape of Television

• Falling network ratings Average drops to 3.9 in
  the 03/04 season
  
• Five of the top 10 series in the 2003-04 TV
  season are reality programs
  
• Digital production of half hour sitcoms
  pervasive
  

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• The 2005 Agreement
• and the
• 2004 Extension Agreement
• must be viewed together as representing the
  achievements of this Bargaining Cycle.

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The Deal on Minimums

• 2005 Agreement
• 3 - 10/1/05
• 3 7/1/05 (Bkgrd)
• 3 - 7/1/06
• 3 - 7/1/07

• Extension Agreement
• 2.5 -7/1/04

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Compounding Minimums--225 million in Actors
pockets over 4 years
2005 CY means the Contract Year for the 2005
Contract 1, 2, 3
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Challenges Facing Benefit Plans

• Costs increasing at 11
• Boomer retiree health coverage
• Pension plans are dependent on market returns
• Over the last 3 years industry plans have cut
  benefits, raised deductibles, raised eligibility
  and implemented employee premiums

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The Deal includes More Producer Money into the
Benefit Plans

• 1.5 increase in PH rate
• Extension Agreement .5
• 2005 Agreement 1
• 1.5 increase in HR rate, IAP
• Theatrical cap increased to 232,000 per picture
• Series performer earnings bank for extended
  coverage
  
• PH for choreographers

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Pension Health Contributions Almost 80 million
Over 4 Years
2005 CY means the Contract Year for the 2005
Contract 1, 2, 3
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Increased Background ActorJobs in LA Zones

• 5 covered jobs per day on feature films
• 4 covered jobs per day per episode in TV
• 1 Background Actor job gained in the Extension
  Agreement
  
• 3 Background Actor jobs gained in 2005 Agt
• 25,000 new union jobs in features
• 50,000 new union jobs in television

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Covered Background ActorsTelevision in the LA
Zones
Tough negotiations on this issue have yielded
nothing for more than a decade for background
working in TV -- until this bargaining cycle
where we added 4 jobs. NY keeps 25 jobs in TV.
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Background ActorsTheatrical in the LA Zones
Not just TV.Weve continued to make progress in
features as well. Five new feature jobs on each
set in this bargaining cycle. NY keeps 85 jobs in
features.
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Improved Safety Rules

• Increase Rest Period from 8 to 10 hours for Stunt
  Coordinators
  
• Better Definition for Dancers Hazardous
  Activity
  
• Work in Tobacco Smoke to the Industry Union
  Safety Committee

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Single Set of Television Terms at the Highest
Level

• The advent of digital production in television
  and its pervasive adoption opened a contract
  loophole for producers.
  
• During the late 80s and 90s film was the medium
  used for dramatic television.
  
• But Digital happened and the lower terms
  applicable to tape were the contract terms
  applicable to new digital production.
  
• The Extension Agreement began by raising initial
  compensation and the 2005 agreement makes the SAG
  and AFTRA agreements equal for Network digital
  work and addresses residuals for WB/UPN 1 hour
  programs.

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Single TV Agreement

• AFTRA Exhibit A (Network) SAG TV
• AFTRA Exhibit E (Pay TV) SAG TV
• Overtime at 2x instead of 1.5x
• HR rate higher PH rate
• Cast credit provisions with penalties
• Background Actors under Schedule X almost a 25
  increase in salary rates 92 ? 122
  
• One hour WB/UPN reruns _at_ higher SAG TV

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The WB UPN Terms
Paid as day performer 716 per day

• 5 lines or less rate (approx. ½ of a day rate)
• Overtime _at_ 30/hour
• Rest Period Violation at 15/hour
• No caps on Background - rate of 90/day
• No Stunt Coordinator coverage
• Reruns based on the Network Code

Overtime based on contracted rates - 130/hr at
scale
Rest Period Violations paid at a days pay
No Bkgrd caps -- rate of 92.25 per day 16 hr
rule
Stunt Coordinator coverage
1 hour reruns based on SAG TV
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5 Lines or Less Day Performeron a 1 hour WB/UPN
show
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5 Lines or Less Day Performeron a 1 hour WB/UPN
show
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5 Lines or Less Day Performeron a 1 hour WB/UPN
show
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Major Role Performeron a 1 hour WB/UPN show
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Major Role Performeron a 1 hour WB/UPN show
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Major Role Performeron a 1 hour WB/UPN show
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So what happened to ½ hour programs and moving WB
and UPN to network residuals?The economics, as
driven by the WB and UPN ratings, just dont
justify moving to the higher paid residuals here
is the data ?
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The Deal includes Improved Residuals

• Pay Television Residuals Increase
• WB/UPN digital 1 hours - pay at higher film
  residual
  
• Network Ceilings Increases
• Residuals based on minimums increase
• Syndication, Foreign,Theatrical, Network
• Foreign Telecasting Thresholds
• Tri-Guild Audit Fund to assure proper payment
  continues

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The Negotiating Committee confronted the
reality of Reality Television and its
devastating impact on actors working in scripted
television.
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Breakdown of Primetime HoursFall of 2003 vs.
Fall of 2004
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Top 10 Series 2003-04 TV Season
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Top 10 Series in 18-49 Week of Jan 17 - 23
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The Reality04/05 Season v. 03/04 Season

• Comedies lost 5.5 Hours - 11 shows
• Dramas lost 4 hours
• Projected loss of over 9,000 Union Jobs.
• What will replace a failed show on the air

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Confronting the Reality Challenge
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Launch

• Joined with DGA and WGA to regain the lost
  scripted hours
  
• Rerun 1st 3 episodes once each within new 2 month
  window without residuals for the series
  performers
  
• Successfully argued that day performers and guest
  stars do not have same immediate economic
  interest in an individual shows success.

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Do Series Performers Lose 10,000 on the Launch?

• No most series performers have one, two or
  three reruns pre-paid.
  
• If the show fails theyve gotten paid
• If the show succeeds they have a series
• Is this money that series performers have been
  receiving? No no traditional reruns within the
  first couple of months.

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Supporting Scripted Programming

• PH contribution for pilots and new 1 hour series
  will stay at 13.5 for the term of this
  agreement.
  
• Scripted TV series will be able to be promoted by
  reusing clips for six consecutive weeks
  
• Clips may be used from one episode into another
  provided the performer is employed for both
  episodes

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Changing Times in TV

• Before -- overnight location work meant Guest
  Stars stayed home -- Now Major Role Performers
  will work in establishing shots
  
• Before -- episodes shot in sequence and you got
  paid for the episode in which you worked Now
  the episodes are more frequently intermingled and
  you still get paid for the episodes in which you
  work.

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More Changing Times in TV

• Before the TV season started in Sept and your
  series option got picked up in June --Now HBO
  shoots year round but your option language is
  still for one year.
• Before A show was 30 or 100 Now theres 43
  episode of Scrubs and new residuals benefits
  structure for supersized episodes

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But why no DVD?

• As of 2000 producers were paying residuals on 62
  of their revenue (and that percentage is
  increasing)in the early 80s when they agreed to
  the existing formula, residuals were paid on only
  35 of their revenue. They argue Video is a
  primary market. Primary market no residuals.
• Producers currently pay residuals on all pictures
  in DVD-- winners and losers. They argue if pay
  at all, pay only on winners like Titanic. Loss
  of income to thousands of actors.
• Producers did not give an increase to the WGA or
  the DGA.

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1980 Studio Revenue Subject to Residuals
20 million in theatrical residuals
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2000 Studio Revenue Subject to Residuals
195 Million in Theatrical Residuals
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2004 Studio Revenue Subject to Residuals
290 Million in Theatrical Residuals
Source NY Times 11/14/04
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Projected Actors Residuals in Video (DVD VHS)
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What about Basic Cable?

• Separate negotiation scheduled for early 2005 to
  deal with Made for Basic Cable
  
• Bargaining notice sent to Universal, Paramount,
  Warner
  
• Proposal to increase residuals on the table

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What does a No Vote Mean? Starting from Ground
Zero

• Going back to the table - starting point
• No increase in minimums
• No increase in PH on that table
• No increase in residuals on that table
• Producer proposal to decrease residuals
• Producers prepare for a strike or lockout
• Stockpiling
• Increased reality programs on the schedule

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What does a Yes vote mean? 200 Million in
Actors Pockets

• Principal performer minimums 133.4 M
• Background actor numbers 10 M
• Background actor minimums 10.8 M
• PH 1, on new , TH cap 60 M
• Network ceilings 2 7/1/07 1M
• PH IACF on pilots 1 hrs -1.4M

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A yes vote also means these benefits for
Performers

• PH for Choreographers
• PH Bank for Series Performers
• Single Television Agreement
• Improvements in hazard activity and increase in
  hazard money for dancers
  
• Increase from 8 to 10 hour rest period and
  increases in salary for stunt coordinators
  
• Industry Union Cooperation

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Vote Yes

• If you have any other questions, please call the
  hotline
  
• 1-800-217-6121 (9-5 PST)