SAG-AFTRA

Fall 2016

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60 SAG-AFTRA | Fall 2016 | SAGAFTRA.org Dolores — not her real name — is in good company. SAG-AFTRA has lately seen an increase in the unsettling trend of employers putting restrictive language into their broadcast personal services contracts. Employers refer to this language as "boilerplate" and often refuse to agree to modifications. Employees often sign contracts with this language not even understanding what it means, only to find out when the employer seeks to enforce it. "SAG-AFTRA has always advocated for its members and others who find themselves in difficult situations because of these provisions," said Vice President, Broadcasters Catherine Brown. "However, recently, we have seen an uptick in the nature of the restrictions, found that they are now being applied to off-air and lower-wage employees, and seen them enforced in situations that are particularly egregious." For example, there's the case of William — also not his real name — whose employer demanded he sign a renewal of his contract a full six months in advance of its expiration date. He signed the new contract and didn't look for other employment, since he thought his job was secure. Then, just before the new contract took effect, the company abruptly terminated him. It's a practice that's known as "parking": locking someone into a contract so they don't look for a new job — only to let them go once the company makes a decision. Both Dolores and William were fortunate to be SAG-AFTRA members and to be able to turn to the union to advocate on their behalf. In both cases, union staff intervened and assisted members with their issues. "The union is constantly vigilant against some employers taking advantage of our members though extreme and unfair employment contract provisions," said SAG-AFTRA President Gabrielle Carteris. "But when it happens, the union is here to help." Employers seem to be including absurdly one-sided provisions with increasing frequency. For instance, an employer will sign an employee to a three-year contract that they can terminate at any time, but one from which the employee will be penalized or sued for leaving. Employers might demand liquidated damages of anywhere from $2,000 to $20,000 from employees who try to leave a contract early. In some cases, even $15-an-hour employees are being asked to sign these kinds of contracts. Unfair provisions such as these can put employees in a bind, and it's been made possible in part by the massive media consolidation. This year marks two decades since then-President Bill Clinton signed the Telecommunication Act of 1996, which relaxed media ownership rules and opened the floodgates to media mergers. Twenty years on, 90 percent of American media is owned by six corporations. The fact that a small number of employers own a large number of stations already places limits on an employee's options if they want to leave their employer. These restrictive provisions are just another way to stack the deck against workers who are simply trying to improve their standard of living or make a career move. Some employers take advantage of the fact that our members have limited options and do what they can to prevent employees from exploring their options, let alone taking a new job. When the employer controls the movement of the employees, they are also able to keep wages low. SAG-AFTRA strongly recommends that members and their personal representatives consult with union staff to get advice before signing their contract. "When SAG-AFTRA members are confronted with onerous contract provisions, our members can contact the union for an analysis of the contract and possibly to seek some relief," said Chief Broadcast Officer Mary Cavallaro. "Our knowledgeable staff can talk to members about their rights and options." In addition, if the employer violates the terms of an employment contract or tries to enforce them in a way that may violate the collective bargaining agreement, the union may be able to litigate the claim through arbitration. The union has also been fighting on the legislative front. In large part because of legislation pursued by SAG-AFTRA, non-compete clauses are not enforceable or limited for broadcasters in a number of states: Arizona, Connecticut, Illinois, Maine, Massachusetts, New York, Washington state and Washington, D.C. In California, non-competes are not enforceable in any industry. That means that a member might think they are bound to certain restrictions that are actually not legally enforceable under the law. That's why it pays to be informed. In addition, the Obama administration has recognized the harmful effects of non-compete agreements and has issued a national call to action to ban these provisions in certain circumstances. However, employers still find ways to limit an employee's ability to leave their current job. For instance, a company might threaten legal action against a competitor who is interested in hiring one of its employees, claiming it interferes with the existing contractual relationship between the current employer and the member. Another example of a restrictive provision common to broadcast contracts is a "right of first refusal." This a clause that states that for a period of time following termination of employment — whether the employee left voluntarily or not — he or she is obligated to give the former employer a chance to match the terms of any new job offer before accepting new work. All of this underscores the need for members to be informed, call the union before they sign and remember that SAG-AFTRA is available should they need assistance. "In an industry dominated by just a few players, it's easy to feel powerless against the giant media conglomerates. But you're not out there alone," said Cavallaro. "You have a union with an experienced staff on your side, and we are here to fight along with you." What's a PSC? A personal services contract, or PSC, is an employment agreement negotiated between an employer and an employee in the broadcast industry. Whereas the collective bargaining agreement is a contract covering a group of employees and negotiated by the union, the terms of the PSC are supplemental to the CBA and are negotiated between an individual and his or her employer. Note that the CBA can supersede provisions of the PSC.

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