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The Peg-Board (October 1994), Animation Guild Newsletter archive

Original link: https://groups.google.com/g/comp.graphics.animation/c/whO1SRdd_Go/m/uO5Bg4i_vwwJ


 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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