Viacom adds benefits for gay partners
Four months after MCA Inc. took a similar step (Daily Variety, May 18), the parent of MTV Networks, Showtime, Viacom Entertainment and Viacom Cable has agreed to establish a policy of offering gay and lesbian workers the same rights as married employees. Viacom is estimated to have some 5,000 employees. The policychange takes effect Jan. 1.
Viacom officials involved in the decision-making were in a management meeting and unavailable for comment. A company spokeswoman confirmed the policy has been adopted, saying the decision was made by senior management of all Viacom divisions. She refrained from elaborating on the philosophy behind the move.
Hollywood Supports, an entertainment industry organization whose mission is to end discrimination in the workplace against gays and people with HIV and AIDS , played a behind-the-scenes role in the adoption of the new insurance policy. Exec director Richard Jennings said Viacom is using his organization's model in establishing the new policy.
Jennings said Showtime chief exec Tony Cox was the champion of the policy change, which took about six months to be accepted.
According to the Hollywood Supports model, employees seeking the coverage must file an affidavit of "spousal equivalency." It defines spousal equivalency as two adults of the same sex living together, with plans to do so indefinitely, in an intimate relationship and are financiallyinter-dependent.
By making the change, Viacom joins a small, but growing number of employers that have adopted similar policies, such as Levi Strauss and Lotus Development Corp.
In the entertainment industry, MCA took the lead in July. According to Jennings, 20th Century Fox and the Walt Disney Co. are also looking at such a move. A spokesman for Fox confirmed the studio is considering the possibility.
A Disney spokesman denied the company is moving in that direction. Disney bases its benefits on competitive practices. Unless more than half of all U.S. companies are offering a particular benefit, Disney won't consider making such a change, the spokesman said. Jennings also said members of the Writers Guild of America, the Directors Guild and the Screen Actors Guild have also been campaigning for this benefit.
Hollywood Supports argues that companies should adopt such policies in the interest of fairness. It can also provide significant benefits in boosting company morale and as a recruitment tool.
But how much will this cost Viacom? Jennings maintains that extending coverage is not as costly as it seems since relatively few employees opt for it. One of the key disincentives is that, unlike the benefits extended to spouses and dependents, same-sex health benefits are taxable.
According to a Stanford U. study of companies offering such plans, only .3% to .7% employees take advantage of the added benefit when offered. In Viacom's case, that translates into 10 to 35 persons. Based on the study, Viacom's maximum possible exposure would be $ 20,000 to $ 100,000.
In the four months in which MCA has offered the benefit, less than 10 employees have signed up for it, according to Jennings.
MCA officials were not available, but a spokeswoman issued a statement saying the company has been "pleased with the response to the program in terms of community and employee reaction and enrollment to date."
