A strike hangover
Last year's work stoppage dogs SAG plans
With negotiations expected to go down to the Saturday deadline, SAG is going to the table in less-than-ideal circumstances: strike fatigue among members and leaders, coupled with an ongoing slump in the ad industry.
Negotiations resumed Monday afternoon at the Alliance of Motion Picture & Television Producers with talks expected to continue today. The AMPTP, SAG and the American Federation of Television & Radio Artists continuing to adhere to a news blackout except for saying that the actors had responded to with a "comprehensive" package.
Due to the blackout, SAG officials have no comment about the impact of last year's strike on this year's negotiations. But SAG's position has been complicated by two crucial developments: a $50 million decline in SAG members' Pension and Health Fund contributions from ad work during the first four months of this year; and an aversion to any strike preparations within the union.
The decline in P&H contributions has not led yet to any decision by the joint industry trustees to tighten eligibility or reduce services. But the shortfall is ill-timed as it comes after SAG earnings from commercials fell 15% last year to $530 million.
Thomas Short, president of the Intl. Alliance of Theatrical Stage Employees, said in an interview Monday, "Our members are seeing significantly lower work from commercials this year, so I'm not surprised that SAG's work is down."
Short said the decline -- which has hit mostly in New York and Los Angeles -- is likely due to a combination of the recession and commercial producers fleeing for less expensive overseas locations. "During the strike, the advertisers and the ad industry found other places to film," he noted.
Short also said he is troubled by the prospect of even less work for actors and IATSE crews if producers increase their use of virtual reality technologies for ads.
Another statistical guage shows off-lot production days for ads in Los Angeles have declined 15% since February, according the Entertainment Industry Development Corp.
"It's unfortunate that the end of the SAG strike coincided with slowdown of the economy," said Matt Miller, prexy of the Assn. of Independent Commercial Producers. "What's happened is that no one has ever been able since then to get into a groove. However, production has been showing signs of recovery in recent weeks."
Defenders of SAG's commercials contract point to several key gains in the pact, including a doubling of cable fees and Internet jursidiction along with advertisers dropping the demand to ditch network residuals. But no one, including SAG, has calculated the value of the three-year commercials deal and that has left the deal open to attack.
As a result, SAG's leaders continue to turn away from efforts to mount a contract campaign or schedule a strike authorization vote. Instead, chief negotiator Brian Walton has stressed that a strike is a "last resort."
Walton was named to the post in February after SAG's national board refused to back prexy William Daniels' suggestion of Robert Hadl, a former MCA exec who was negotiating for the Writers Guild. That appointment has been seen as reflecting the view within SAG that the strike went on for too long and that SAG needed to take a less militant stance at this year's negotiations.
