The Secret: Georgia Production Partnership - Southern Screen Report
The Secret: Georgia Production Partnership - Southern Screen Report
The Secret: Georgia Production Partnership - Southern Screen Report
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Legalizations<br />
Union or Non-Union: That is the Question!<br />
By Cliff Lovette, Esq.<br />
One of the many questions facing independent<br />
film producers is whether to sign<br />
collective bargaining agreements with the<br />
various unions/guilds that represent film<br />
talent, crew, and other filmmaking personnel.<br />
<strong>The</strong> main ones are:<br />
• <strong>Screen</strong> Actors Guild (SAG) - represents<br />
actors, extras, dancers, choreographers,<br />
stunt coordinators, and stunt<br />
doubles<br />
• International Association of <strong>The</strong>ater<br />
and Stage Employees (IATSE) - represents<br />
technical crew such as cinematographers,<br />
camera crew, production<br />
designers, and grips<br />
• Teamsters - represents the transportation<br />
workers<br />
• Director’s Guild of America (DGA) -<br />
represents directors, assistant directors,<br />
and directors of photography<br />
• Writer’s Guild of America (WGA)<br />
– represents screenwriters<br />
<strong>The</strong>re are no union rules that would<br />
force a producer who signs with one union<br />
to sign with all other unions. So, a producer<br />
can make a separate decision to sign with<br />
each union or guild on a case-by-case basis.<br />
This article focuses on practical considerations<br />
in making that decision as related to<br />
the <strong>Screen</strong> Actor’s Guild (SAG).<br />
(For convenience, this article will use<br />
“union” and “guild” interchangeably.)<br />
SAG Agreement<br />
To use SAG actors in your production,<br />
you must sign a SAG guild agreement. <strong>The</strong><br />
SAG Codified Basic Agreement for Independent<br />
Producers (“Basic Agreement”)<br />
covers matters such as minimum pay for<br />
actors, working conditions around the set,<br />
credits, and residual payments for TV telecasts,<br />
DVD sales, merchandising, and other<br />
non-theatrical exploitation of the film. SAG<br />
provides the minimum terms and conditions,<br />
but many ‘stars’ and established actors<br />
can negotiate terms that are much more<br />
favorable to them than those in the Basic<br />
Agreement.<br />
In 1997, SAG created SAGIndie to encourage<br />
the use of SAG members in independent<br />
films. Under SAGIndie, there are<br />
four major classes for low budget agreements,<br />
depending on the amount of the production<br />
budget (see table).<br />
Benefits of a SAG Agreement<br />
Virtually all professional motion picture<br />
and television actors belong to SAG or<br />
AFTRA (the sister guild which shares jurisdiction<br />
over TV production with SAG).<br />
<strong>The</strong> quality of SAG actors and other talent<br />
is likely to be much better in terms of experience<br />
and performance than non-guild talent.<br />
Some experienced directors and other<br />
key personnel may not be willing to work<br />
on a project if the key cast for a project is<br />
filled with non-SAG actors.<br />
Independent producers attach key elements<br />
to their project, such as a known<br />
director or actor, to attract production funding<br />
and distributor interest, and to secure<br />
presales of certain exploitation rights. Creating<br />
a commercially viable project often<br />
requires the use of known talent, which necessitates<br />
becoming a SAG signatory. However,<br />
not all independent producers choose<br />
this route. Recently, <strong>The</strong> Signal was produced<br />
in <strong>Georgia</strong> as a non-SAG production<br />
and still secured a significant domestic distribution<br />
deal at Sundance in January.<br />
Using inexperienced performers who<br />
are not familiar with working on a film set<br />
can easily translate into longer rehearsals<br />
and more ‘takes,’ which increases production<br />
costs. Established SAG actors also<br />
offer the advantage of name recognition<br />
and ‘marquee’ value that an unknown non-<br />
Short Film<br />
Agreement<br />
• Total budget less<br />
than $50,000<br />
• Length of film must<br />
be 35 minutes or<br />
less<br />
• Salaries are deferred<br />
• No consecutive<br />
employment (except<br />
overnight location)<br />
• No premiums.<br />
• Allows the use of<br />
both professional<br />
and non-professional<br />
performers<br />
• Background performers<br />
not covered<br />
SAG Low Budget Agreements*<br />
Ultra - Low<br />
Budget<br />
Agreement<br />
• Total budget less<br />
than $200,000<br />
• Day rate of $100<br />
• No step-up fees<br />
• No consecutive<br />
employment (except<br />
on overnight<br />
location)<br />
• No premiums<br />
• Allows the use of<br />
both professional<br />
and non-professional<br />
performers<br />
• Background performers<br />
not<br />
covered<br />
SAG actor will not provide. Such high<br />
profile talent may generate increased box<br />
office revenues.<br />
If the production requires the use of<br />
stunt performers, using non-SAG stunt<br />
performers can greatly increase the risk of<br />
injury, increase the number of ‘takes’ because<br />
of inexperience in working with film<br />
crews, and increase the amount of liability<br />
insurance premiums.<br />
If a producer doesn’t sign a SAG agreement<br />
and ends up hiring SAG actors, the<br />
SAG actors will be forced to quit if the<br />
guild finds out. This could be devastating<br />
for an unfinished project.<br />
Drawbacks of a SAG Agreement<br />
A SAG production will require a higher<br />
production budget because minimum salaries<br />
may be higher and they bear fringe<br />
benefit payments. Also, the producer will<br />
have to observe SAG’s working condition<br />
restrictions, including the length of time a<br />
performer may work on the set. Additionally,<br />
SAG requires the payment of residuals<br />
for exploitation of the film in ancillary markets<br />
such as TV and DVD (‘supplemental<br />
markets’).<br />
SAG also requires that producers tender<br />
a security deposit (the ‘SAG bond’),<br />
which equals about 40% of the budgeted<br />
See SAG on page 8<br />
Modified Low<br />
Budget<br />
Agreement<br />
• Total budget less<br />
than $625,000<br />
• Day rate of $268<br />
• Weekly rate of<br />
$933<br />
• No consecutive<br />
employment (except<br />
on overnight<br />
location)<br />
• Six-day work week<br />
with no premium<br />
• Reduced overtime<br />
rate<br />
Low Budget<br />
Agreement<br />
• Total budget less<br />
than $2,500,000<br />
• Day rate of $504<br />
• Weekly rate of<br />
$1752<br />
• No consecutive employment<br />
(except on<br />
overnight location)<br />
• Six-day work week<br />
with no premium<br />
• Reduced overtime<br />
rate<br />
• Reduced number of<br />
background performers<br />
covered<br />
* http://www.sagindie.org/resources/contracts, 2007<br />
www.screenreport.com May 2007 Page 5