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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

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