A resumption of negotiations between the actors’ unions and the advertising industry doesn’t appear to be in the immediate offing. Federal mediators met with representatives from both sides in New York last week (6/13) in hopes of reviving talks that broke off in April, leading to the current strike which began on May 1. However, mediators determined that the two parties still remain far apart, with not enough movement realized to even warrant a return to the bargaining table.
Mediation, though, will continue to play a role in the spot actors’ strike, according to John McGuinn, chief negotiator for the Joint Policy Committee (JPC) of the American Association of Advertising Agencies (4A’s) and the Association of National Advertisers (ANA). The two federal mediators who participated in the recent session informed the JPC contingent and representatives from the Screen Actors Guild (SAG) and the American Federation of Television and Radio Artists (AFTRA) that they are subject to recall. McGuinn related that the mediators said they would be in touch with the lead negotiators for the actors and the ad business in a couple of weeks.
SAG and AFTRA released a statement declaring that they remain open to the possibility of restarting talks once the JPC "removes its [residuals] rollback proposal and demonstrates a willingness to address the key components of the unions’ proposals." In the meantime, SAG and AFTRA said that they will continue their effort to impact commercial production. According to the unions, this has already translated into a 25 percent decline in California spot shoots since May 1.
As earlier reported (SHOOT, 6/9), that claim was substantiated in film permit statistics released by the Entertainment Industry Development Corporation (EIDC), the public/private sector partnership that oversees the joint Los Angeles County/City Film Office. However the key question is whether that drop-off is indicative of a halt to spotmaking or instead reflects a runaway situation whereby much of that business is merely being diverted elsewhere such as right-to-work states and/or foreign countries.
SHOOT learned of several U.S. commercial projects underway or scheduled to be shot in Australia. Though it could not be confirmed at press time, it’s believed a couple of those ads are slated to debut during NBC’s coverage of the Summer Olympics (9/15-10/1) in Sydney. Additionally, American spot production seems to be picking up significantly in Vancouver, B.C., Canada
Though the extent of strike-prompted runaway production is subject to debate, certainly enough is taking place to have adversely affected many U.S.-based artisans and support service companies that are caught in the middle. Indeed a cross-section of people other than spot actors currently finds itself out of work.
"One out of every three phone calls I’m getting is from crew members here [in Los Angeles] asking me if there’s any work," said an executive producer who has begun producing jobs outside the U.S. due to the strike. That comment was typical of the feedback SHOOT received from assorted commercial production company executives.
"And it’s only going to get worse," chimed in another who requested anonymity, seeking to avoid the formation of actors’ picket lines in front of his company. "Crew people in the U.S., particularly Los Angeles and New York, are really feeling the pinch. And as advertisers have good experiences overseas and realize cost savings, the long-term impact on American workers could be quite negative. The work overseas is additionally helping to develop deeper pools of crew talent outside the U.S."
Word is that a number of Southern California-based equipment houses, stage rental facilities, set construction firms and other support companies reliant on commercials are also getting hit hard.
Additionally, several commercial production houses in major U.S. markets acknowledged that the strike is taking its toll. While many shops remain busy during the strike, some noted that even before the labor unrest, they were very much impacted by workflow or the lack thereof. With declining profit margins and significant overhead, a few companies admitted that the strike-related slowdown has exacerbated their situation. Though it remains to be seen, some pundits believe that the strike will accelerate the much predicted production house shakeout in a market that has long been marked by limited work and an excess of production companies and directors.
A principal in a production house that has been hurt by the strike said, under the condition of anonymity, that his company and others are, like crew members, caught in the middle. "We’re not at the negotiating table-that is if and when negotiations resume," he observed. "Those [commercial production] companies that are working are just trying to serve their clients. And companies like mine that have seen board flow drop dramatically are having their very existence threatened."
