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THE PEG-BOARD -- Information Superhighway Edition -- October 1994
This is a monthly posting of excerpts from THE PEG-BOARD, the newsletter
of the Motion Picture Screen Cartoonists and Affiliated Optical
Electronic and Graphic Arts, Local 839 IATSE. THE PEG-BOARD is also
published in printed format.
This file is available by anonymous ftp, along with a number of other
files about Local 839. The address is:
ftp.netcom.com:/pub/mpsc839
Local 839 IATSE is the largest local union of motion picture graphic
artists in the world. We have over 1,600 active members employed in
animation and CGI in Southern California.
In this month's issue:
* Disney agrees to 401(k) plan
* Geffen, Katzenberg and Spielberg to open new studio
* From the Business Representative
* From The President
* Q&A about 401(k)
* How 401(k)s save you money
* Don't be afraid of COBRAs
* A fond farewell
* In memoriam
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401(k) VICTORY!
Disney agrees to union savings plan;other studios may follow
Disney has greenlighted participation in the Motion Picture Screen
Cartoonists' new 401(k) plan. Disney, Local 839's largest employer,
agreed to participate in the plan after turning down the union's 401(k)
proposal in the 1993-94 contract negotiations. The company reversed its
earlier position after studio employees signed petitions supporting a
401(k) plan.
A 401(k) plan is a voluntary plan by which employees choose to have a
portion of their earnings put into a tax-deferred savings plan for
retirement. The plan, set to roll out in the first quarter of 1995, will
be administered by The Principal Financial Group, one of the largest
401(k) administrators in the country.
Local 839 has sent copies of its 401(k) proposal to every studio with
which we have a contract. We encourage all our employers to agree to a
401(k) on the same basis as Disney. Our goal is to make this a multi-
employer plan with full portability, allowing members to switch from one
union shop to another while keeping the same 401(k) provisions, much as
they now do for health and pension.
Our other union shops are studying the plan with interest, although one
employer, Warner Bros., has (so far) turned us down. Members employed at
studios not yet signed to the 401(k) plan should take a cue from the
methods by which Disney employees got the plan approved. Put direct
pressure on management -- sign petitions, talk to supervisors. If you're
negotiating or renewing a personal service contract, drop some broad
hints that a 401(k) would "sweeten" the deal. Our hope that the intense
competition in the labor market will lead other employers to follow
Disney's example -- but this will only happen if members themselves make
their feelings known.
Watch this newsletter (and separate mailings) for further developments.
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"I'm going to Disney World" -- Jeffrey Katzenberg, 10/12/94
Word reaches us that three of the most powerful men in Hollywood are
going to form a new, $2 billion studio -- and have announced that they
"will make animation a priority". David Geffen, Jeffrey Katzenberg and
Steven Spielberg will form a company to produce and distribute animated
and live-action movies, records, television and interactive projects.
Katzenberg, who will run the studio, recently left his position as
chairman of Walt Disney Studios, where he was credited with their
stellar animation successes of recent years. Spielberg, the most
successful director and producer in motion picture history, is
responsible for several successful
animated features including Who Framed Roger Rabbit? and An American
Tail. Geffen, the only partner without an animation track record, comes
from a background in the record industry.
At an October 12 press conference, the troika announced preliminary
plans to operate in five areas -- "animation, movies, records,
television and interactive" (interesting priority!) The new company will
be privately held, with Geffen and Spielberg, two of the richest men in
Hollywood, serving as primary backers.
Two hours before the press conference, the union office received its
first calls asking where to send resumes. Needless to say, this is
premature; the new studio doesn't even have an office address yet. We
will report as we learn more details.
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FROM THE BUSINESS REPRESENTATIVE
Reflections on a fifth anniversary
Next month I celebrate my fifth year as 839's Business Representative
(that's the one union officer who is paid). And if I were a better
politician (and more seasoned liar), I would tell you how the union has
grown from 700 to 2,000 members in the past five years, how the union
coffers have refilled, how we have prospered beyond our wildest
imaginings -- all due to my steady hand and inspired leadership.
And it would be, as my Aunt Clarise used to say, patented horse poop.
The truth is, most of the growth of this union has occurred because
(firstly) Steven Spielberg decided to dive into animation in the mid-
eighties and (secondly) Disney kept its feature animation division open
after CEO Ron Miller took early retirement and the company produced a
string of gargantuan animated hits. And now, of course, most of Disney's
competition is making the traditional profit-driven Hollywood stampede
into the golden fields of animation.
We have been the right labor union in the right place when the tidal
wave hit. Whatever contributions yours truly has made have been around
the edges: visiting studios, calling members, helping to expand The Peg-
Board, typing resumes, making referrals, cobbling negotiating committees
together, and so forth. All of it helpful, but most of it beside the
point. The market, and the skill of our members, have made all the
difference.
So now we stand on the cusp of record employment in animation, and I
gaze back over the past five years, and muse upon what I have learned,
and how I have changed.
I have learned that this job on its worst day is still better than
teaching the eighth grade on an average day.
I have learned to hope for the best, and then pray for it.
I have learned that union artists have much more clout at the bargaining
table than I do. Therefore I have also learned to have as many of them
at the bargaining table as possible.
I have learned that most meaningful negotiations occur in the final
twenty to thirty minutes of contract talks. And that if you don't watch
every word, comma and period of the resulting draft document, you can
get in trouble.
I have learned that the more management negotiators trumpet about
principles, the less principle is actually involved.
I have learned that the market always prevails, and it's nice seeing the
market drive up wages ... since it's usually the other way around.
I have learned that cynicism can be both a shield and a comfort.
I have learned that, if I live as long as my grandfather, I will end up
in a rest home wearing diapers, so I shouldn't take the defeats (and
occasional victories) too seriously. I am, after all, just the union
guy, and twelve months after I depart nobody will remember I was here in
the first place.
I have learned that just as I start to despair over members' cowardice
(and sometimes my own), their courage bursts forth to astound and
delight me.
Most of all, I have learned that the skills of screen cartoonists are
rare and irreplaceable, and that the employers, occasional words and
actions to the contrary, know this as well.
-- Steve Hulett, USNR retired
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FROM THE PRESIDENT
Tales of terror
This is the month for ghosts, goblins and trick-or-treaters. I can't
soap your windows and I don't know many scary stories beyond Social
Security will be bankrupt one day, so I thought I'd present for your
amusement an Animation Chamber of Horrors. Direct quotes from employers,
your friends who hire and control your pay, either heard by me or
relayed to me by other artists.
Abandon All Hope All Ye Who Enter:
The problem with animators is that they make too much money and all want
big houses. If they made less and lived in apartments they would
concentrate on their work more.
-- unnamed Dublin studio owner
Compensation? To be an Artist for Walt Disney is compensation enough!
-- unnamed contract negotiator
(not an artist)
That's a Disney problem. We're talking Steven Spielberg!
-- unnamed negotiator, in response
to being told our membership
won't stomach wage and
overtime cuts just to sign a contract
Steve, do you think it's fair that all those $100,000-a-year directing
animators and supervisors get overtime as well?
-- unnamed WB contract negotiator
A seven foot by seven foot space is all any animator wants or needs.
-- unnamed production manager
You're making good money for a girl.
-- unnamed New York studio head,
to woman recently promoted to animator
What are you, p--w--d*?!
-- *crude synonym for "henpecked"
said by production manager to artist who
refused to work any more Sundays because he
wanted to spend time with his family
Longterm? Why worry about longterm when we can always get another bunch
of CalArts-ers and burn them up!
-- unnamed studio head
I thought we had something special here. I thought you cared about
animation.
-- unnamed non-union studio head,
dressing down his staff for refusing
to work for free on weekends
I can get cel painting done for $16 a week overseas. When a computer can
do that, call me!
-- unnamed studio head
[Note: Cuckoo's Nest in Taipei
is buying ink and paint computers ...]
Before I'd sign a union contract I'd cut my wrists and move back to
Hungary!
-- unnamed non-union producer
They're animators. And you know animators know nothing about money!
-- unnamed Canadian studio owner
Animators are easy. I can always get as many as I want for as little as
I want.
-- unnamed non-union production manager
Scary, eh? If you have any bon mots like this send them in to the union
office for next years' column.
Someone asked me if I'm telling you to hate your bosses. I don't want
that.
Most of the men and women we work for are fair and love this art form as
much as we do. True, some are just passing through this current boom but
many have dedicated their lives and fortunes to it as you and me. A
studio production head once said to me about his artists: "Why don't
they want to belong to a union? The benefits are so obvious!" Another
said: "Who says the relationship between management and union must
always be hostile?"
So be loyal, efficient and productive employees. Let's all enjoy this
prosperous time together. Just keep in the back of your mind the words
spoken by the great Oakland Raiders sage John Matusak, yelling at his
coach in the film North Dallas Forty (screenplay by Frank Yablans, Ted
Kotcheff and Peter Gent):
How come every time we say it's a game you say it's business, yet when
we wanna talk business you say it's a game?!
Happy Halloween!
-- Tom Sito
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Q & A
Q: What is a "401(k)"?
A: A 401(k) plan, named after the numbered provision of the Federal tax
code, is a voluntary employee retirement plan which allows you to
shelter earned income in a tax-deferred account that grows (hopefully)
until you reach retirement age ... and then the Feds tax it. If you
choose to invest in a 401(k) plan, the money is deducted from your
weekly paycheck.
One difference between a 401(k) account and an individual retirement
account (IRA) is that with a 401(k), you can deduct and shelter up to
$9,000 a year. An IRA only allows $2,000 per year.
Q: What's the difference between a 401(k) plan and the pension plan we
already have?
A: Our pension plan, commonly referred to as a "defined benefit" plan,
is financed entirely by employer contributions (the employee
contribution was discontinued in 1990). The investments made by the
pension plan are determined by a joint labor-management board of
trustees. Federal law guarantees that the pension will be available and
paid out to vested participants.
Q: What is an "employer match"? Will the MPSC 401(k) plan have one?
A: "Employer matches" are contributions an employer makes into an
employee's 401(k) account to "match" employee contributions. Although
the Screen Cartoonists' negotiating committee fought tenaciously for an
employer match in the last negotiations, we received a resounding "no"
on the subject.
Q: Don't most 401(k) plans have an employer match? Is it worthwhile for
me to put money into a 401(k) plan without an employer match?
A: Many 401(k) plans have an employer match, but some do not. The
national average for employer matches is 50 cents for every dollar an
employee puts in; the average yearly total for employer matches (per
employee) is $711.
Often, employer matches are conditional on working at a specific
employer for a length of time -- sometimes as long as five years.
Otherwise, the employer takes back his contributions when you leave the
company.
Every dollar that you put into a 401(k) plan is excluded from federal
and state income taxes, so your "take home" pay does not drop as much as
the money you remove to put into your 401(k) account [see "How a 401(k)
saves you money", below]. And remember, the money that your 401(k)
deductions earn in their 401(k) account is tax-deferred -- so the money
grows that much faster.
Q: Who will be handling the 401(k) accounts?
A: The administrator for The Screen Cartoonists' 401(k) plan will be The
Principal Financial Group. The Principal, one of the country's largest
insurance companies, has $35 billion in assets and offered us the most
cost-efficient administration. It's one of the U.S.'s largest 401(k)
administrators, and one of the most active with small and medium-sized
funds. They offer a wide range of mutual funds from which participants
can choose.
Q: Who decides where my 401(k) monies are to be invested?
A: Unlike the pension plan, where investments are made by a joint labor-
management board of trustees, you will make your own investment
decisions for the money you defer. The administrators will offer
guidance and advice on how best to invest your money, but the final
decisions are up to you.
Q: Are the 401(k) accounts insured and guaranteed?
A: The plan's money market account (which will be one of several
options) invests in high-grade corporate and government bonds and seeks
to preserve principal. The equity funds (those investing in stocks) can
go up or down, depending on the market. Nothing in life is guaranteed,
including mutual funds. Over the last sixty years, however, well-managed
stock funds have averaged ten percent growth per year.
Q: What happens to my 401(k) account if I move to another studio?
A: We are designing this plan to be portable; that is, if you leave one
signator studio for another, your 401(k), like your health plan, goes
with you.
Q: What happens to my 401(k) if I leave the industry?
A: The money you accumulate can be rolled over into a personal IRA
account and taken with you. You can also take the money out of the
account and stuff it into your jeans, but then the Federal government
will swoop down and take a large bite out of your stash in taxes. Better
to roll it over into an IRA and keep it sheltered from the IRS.
Q: When I asked management at my studio about a 401(k), they said we
couldn't have one because we already have a defined-benefit pension
plan.
A: Wrong. Although some studios have had a policy of not allowing
employees to have both a 401(k) and a defined-benefit plan, there is no
legal impediment to having a 401(k) plan with any union employer.
Whether or not management chooses to allow Local 839 members to have a
401(k) will depend entirely on how forcefully employees make their
feelings on the matter known to management.
Q: I didn't make all that much last year. Aren't 401(k)s just for the
"fat cats" who make a lot of money in the industry?
A: Not at all. For example, many lesser-paid members in our industry
come from multiple-income families that file joint returns. If you file
jointly, and your spouse works at a job that does not have a 401(k)
plan, that may be an incentive for you to defer a high percentage of
your wages into our plan.
Q: When will this plan start?
A: We anticipate roll out in the first quarter of 1995. If you're with a
studio that has signed on, expect to get plenty of info in the mail
before and during that time.
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How a 401(k) plan saves you money
These estimates assume that you make an annual wage of $35,000, and that
you file a single income tax return with one exemption.
401(k) deferral
percentage = None 2% 4% 6%
---- -- -- --
Annual salary.........$35,000.....$35,000......$35,000....$35,000
Annual deferral.............0........$700.......$1,400.....$2,100
Amount reported
on W-2...........$35,000.....$34,300......$33,600....$32,900
Federal tax............$5,996......$5,799.......$5,603.....$5,407
California state tax...$1,501 .....$1,307 ......$1,307 ....$1,307
FICA...................$2,677......$2,677.......$2,677.....$2,677
Take-home pay.........$24,826.....$24,517......$24,013....$23,509
Minimum annual profit
from 401(k) deferral*.......0........$391.........$587.......$783
* These figures represent the amount deferred minus the amount lost from
take-home pay; they do not take into account your potential profit/loss
from investment of your deferred wages.
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DON'T BE AFRAID OF COBRAS
We're not talking about poisonous hooded snakes from India here, nor are
we referring to the bad guys from G. I. Joe. We're talking about self-
payment of health premiums under the Consolidated Omnibus Budget
Reconciliation Act (or COBRA).
What COBRA means to you is that, if you're running out of health
coverage, you have the right to self-pay the group-rate premiums -- an
amount equal to the Plan's applicable premium cost plus 2% for
administration. This may be extended up to a maximum of eighteen months.
There are two COBRA rates: Core, which includes medical, hospital and
prescription drug coverage only, or Non-Core, which includes medical,
hospital, prescription drug, vision and dental coverage. If you've had a
bank-of-hours or disability extension in the prior six-month period,
your right to self-pay will decrease by six months per extension.
The good news about COBRA self-payment is that it allows you to continue
at the same level of coverage you had when you qualified. This can save
you a lot if you have pre-existing medical conditions, a large family,
or any situation where your medical bills tend to be relatively high.
The bad news about COBRA is that it can be expensive. If you only want
major medical or hospitalization coverage in case of accident or major
illness, there are less expensive alternatives, with the tradeoff of
high deductibles. The union has information on these alternatives.
For further information about COBRA payments, contact the Motion Picture
Industry Pension and Health Plan at (818) 769-0007 or (310) 769-0007.
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A FOND FAREWELL
Jeffrey Katzenberg said his good-byes to Disney's feature animation crew
on September 23, ironically ten years to the day since Michael Eisner
and Frank Wells first toured the animation department. The event was
disguised as an Octoberfest party with no hint of the real nature of the
occasion. It is speculated this was done to keep the event private and
away from the media who exulted in reporting the tearful farewell the
Florida unit gave him.
Amongst the beer, schnitzel and kielbasa the dreaded rob-exec embraced
and joked with his former cartoon cohorts. He later gave a speech
thanking us for letting us share Camelot with him. Even for as cynical a
bunch as we animators can be, the event was moving. We all had the sense
that an era was ending. As we wished J.K. well in any new pursuits we
urged him not to forget animation. Some among us reported his leaving
them not with a shout but a whisper: "We will work together again ..."
-- Tom Sito
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POSITIONS AVAILABLE
Chuck Jones Film Productions is looking for a layout person with a
minimum of three to five years' experience in layout, for work on a
series of theatrical cartoons. Position requires expensive understanding
of the mechanics of layout, an ability to work quickly and effectively
in a graphic style, and an ability to take direction well. Position is
"on staff" and is to be filled as soon as possible. Portfolios and
resumes may be dropped off at the studio weekdays between the hours of
nine and six. All portfolios should be labeled on the outside "LAYOUT"
and be to the attention of Stephen Fossati. 3500 West Olive Avenue,
Suite 1430, Burbank, CA 91505; phone (818) 954-2655.
Walt Disney Television Animation is currently interviewing for all
artistic positions for new programs consisting of cartoon shorts and
action-oriented stories. Please submit resumes and portfolios to:
Barbara Ferro, c/o Walt Disney TV Animation, 5200 Lankershim Blvd.,
#600, North Hollywood, CA 91601.
Help wanted: I am an established illustrator that needs help with
coloring two picture books under contract to a major publisher.
Animation techniques applicable. Immediate response preferred. Flat fee.
Be prepared to show works in color. We will collaborate on finishes. You
will learn about picture book art from a pro. You will do most of the
work off premises. Barbara, (818) 784-7443.
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IN MEMORIAM
1992 Golden Award winner ANNA LOIS RAY died on September 29. Since 1941
she had worked as an inker, painter and assistant animator for MGM,
Cascade, TV Spots, Celine Miles, Filmfair, Paul Fennell, Hanna-Barbera,
Krantz, Marvel, Bakshi, Fred Niles and Archer Productions. She is
survived by her husband, Executive Board member Tom Ray, and her
children, Greg Ray and Donna Mouliot.
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MOTION PICTURE SCREEN CARTOONISTS
AND AFFILIATED OPTICAL ELECTRONIC AND GRAPHIC ARTS,
LOCAL 839 IATSE
4729 Lankershim Boulevard, North Hollywood, CA 91602-1864
phone (818) 766-7151 * fax (818) 506-4805
E-mail inquiries: mps...@netcom.com
Anonymous FTP: ftp.netcom.com:/pub/mpsc839
PRESIDENT -- Tom Sito
BUSINESS REPRESENTATIVE -- Steve Hulett
VICE-PRESIDENT -- George Sukara
RECORDING SECRETARY -- Jeff Massie
SERGEANT-AT-ARMS -- David Teague
PEG-BOARD EDITOR -- Jeff Massie
EXECUTIVE BOARD
Viki Anderson * Bronwen Barry * Sheila Brown * Jan Browning
James Davis * Earl Kress * Craig Littell-Herrick * Tom Ray
Pat Sito * Ann Sullivan * Stephan Zupkas
TRUSTEES -- Pat Sito * Ann Sullivan * Stephan Zupkas
Contents (c) 1994 by MPSC Local 839 IATSE. All rights reserved.
Publications of bona fide labor organizations may reprint articles from
this newsletter so long as attribution is given. Permission is also
given to distribute this newsletter electronically so long as the ENTIRE
--
_______________________________________________________________________________
Motion Picture Screen Cartoonists and 4729 Lankershim Blvd.
Affiliated Optical Electronic and North Hollywood, CA 91602-1864
Graphic Arts, Local 839 IATSE phone (818) 766-7151 * fax (818) 506-4805
Anonymous FTP: ftp.netcom.com:/pub/mpsc839 E-mail: mps...@netcom.com
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