Issue link: https://digital.copcomm.com/i/775482
F E B R U A R Y 2 0 1 7 I 3 Dear Members: On December 29, 2016, the DGA's National Board voted unanimously to approve and recommend for ratification a new three-year collective bargaining agreement negotiated with the Alliance of Motion Picture and Television Producers (AMPTP). The vote took place at a special meeting that had been called in order to present details of the contract to the Board. We would like to take this opportunity to thank the dedicated work of the BA-FLTTA Negotiations Committee, made up of more than 70 members representing all categories, across the nation and internationally. In addition, we would like to give our heartfelt thanks to our amazing chief negotiator, National Executive Director Jay D. Roth, for his wisdom and guidance. The DGA entered negotiations with two major priorities: seeking a significant and meaningful increase in residuals for programs made for high budget subscription video on demand services (SVOD) such as Amazon Prime Video, Hulu and Netflix; and obtaining additional funding for the DGA Basic Pension Plan. We are pleased to announce that we accomplished both these goals and then some. In regards to high budget SVOD, the DGA achieved unprecedented increases that more than triple the residual payment for one-hour programs made for the largest SVOD platforms, increasing the payment from approximately $15,000 to more than $50,000 for the first three years of use, with an even larger increase for feature length projects made for SVOD, boosting the residual for projects with a budget greater than $13 million by 294%. And, for the first time, these residuals will be shared with our UPM and AD members. While the DGA Basic Pension Plan remains the best funded retirement plan in the industry, it has not been immune to the risk of lower investment returns or market volatility in the future. Under the new agreement, the Employer contribution rate will permanently increase by 0.5% in the first year of the agreement, from 5.5% to 6.0%. This will provide an additional $3.5 million per year to fund your retirement benefits. The DGA will also have the right to divert up to 0.5% of salary increases in the second and third years of the agreement to either the DGA Pension or Health Plan. This new agreement also includes a significant raise in wages and residuals with the minimum salaries for most members increasing by 2.5% in the first year of the agreement and by 3% in the second and third years of the agreement. We also obtained an outsized increase in the first season rate for Directors of one-hour basic cable dramatic programs. Other highlights of the new agreement include: provisions establishing a mandatory orientation program for First Time Dramatic Television Directors; establishing for the first time residuals for Directors of High Budget Basic Cable Variety Programs; an outsized increase for Unit Production Managers and Assistant Directors employed on low budget basic cable programs; language strengthening the hold harmless provision in the agreements; and nationwide mandatory safety training for all Unit Production Managers, Assistant Directors, Associate Directors and Stage Managers. This historic agreement protects our members' futures, not just for the next three years, but for many years to come. On December 29, our DGA National Board voted unanimously to recommend that members vote YES to ratify the Agreements. The deadline to vote on this ratification of the contract is Wednesday, January 25, 2017, 6:00 p.m. PST. (See more details on the following pages.) Results will be announced on Thursday, January 26, 2017. Michael Apted & Thomas Schlamme Negotiations Committee Co-Chairs A Message From Negotiations Co-Chairs Michael Apted & Thomas Schlamme DGA 2017 NEGOTIATIONS Michael Apted and Thomas Schlamme