Off Broadway Negotiations Break Down

Taken from detailed notes kept by the Union negotiators, the following is a recap of events which culminated in the final breakdown of talks between ATPAM Local 18032/IATSE and the League of Off Broadway Theatres and Producers during the housekeeping phase.

ATPAM Committee – Robert Reilly (Lead Negotiator), Barbara Carroll, Laura Heller, Nick Kaledin, David Gersten, Theresa Von Klug (Field Representative)

Off-Broadway Committee – Ben Sprecher (Lead Negotiator), Terry Byrne, Eric Krebs, Jon Pollard, George Forbes, Margaret Cutler, Kristin Kotz (Note Taker)

Talks began on Tuesday, June 5, 2001. The Union brought to the table a list of items and had been prepared to exchange lists. However, the Off-Broadway League Lead Negotiator, Mr. Sprecher, refused to put their demands in writing. Among the main issues of concern voiced by the League was the subject of Press Agents: their status as employees vs. independent contractors. The meeting ended with little resolved other than the next meeting date.

In our next meeting on Tuesday, June 12, 2001, the League finally expressed in detail their concerns regarding Press Agents and Press Agencies being employed on union contracts. The League wanted the Press Agents declared independent contractors. The League and ATPAM discussed numerous alternatives. ATPAM gave the League their list and the League said they would also bring a list to the next meeting.

ATPAM’s original list requested a five year contract, wage increase of 5 ½ % each year, increased union jurisdiction language, both a Manager and Press Agent employed in 100-199 seat theaters, in Local #1 theaters a House Manager must be employed, increased additional compensation for seventh day work, transportation reimbursement for Managers, working computers must be supplied for Managers (or reimbursement to use their own computer), increase bond amount for Press Agent expenses, additional language and jurisdiction for recording a cast album, holiday pay, introduce an Annuity Fund, biographies, indemnification language, IA strike/picket line language and meal money. In addition, ATPAM had two items on their "housekeeping" list, which included listing the current working dues amount in the contract and the yearly Actuaries recommendation for the welfare contributions.

In subsequent meetings, the League did supply ATPAM with a list and we discussed other issues, however the main topic of discussion was whether or not Press Agents should be classified independent contractors.

The League’s list requested; the return of the entire amount of interest earned on their bonds, transfer language for shows moving to a another Off-Broadway house with only two weeks rehearsal before opening then the ATPAM employees minimum employment period before opening would be the two weeks instead of the usual four weeks, language for out-of-town tryout productions coming into New York where the out-of-town rate of pay would not prevail in the Off-Broadway location, a time line for Press Agents to submit reimbursement bills, paying lower Welfare contribution amounts than Broadway and the ability to terminate the Press Agents at any time with no replacement required.

After several meetings between ATPAM and the Off Broadway League, a marathon bargaining session was held at the ATPAM Founders Room on Friday, June 29, 2001 from 11 a.m. to 1:00 a.m. the following morning. The above-mentioned items, as well as other topics, were debated at great length. At the conclusion of the session, and after recapping the many clauses, the Union negotiators left the table with the belief that all items had been agreed-to in principle and the remainder of the work was minor housekeeping items.

ATPAM sent the Off Broadway League a contract reflecting the agreed-to clauses on Monday, July 2, 2001.

These next events occurred during what is considered in negotiations as "the housekeeping phase." This phase is when the two sides review language for each of the articles in the contract to determine whether or not the language accurately reflects the intention of the article and its clauses. Major negotiations on items are not done during housekeeping.

Having not heard from the Off-Broadway League, ATPAM called Mr. Sprecher on Tuesday, July 10, 2001. Mr. Sprecher returned the call. The Union reminded Mr. Sprecher that both parties had agreed that language modifications would be completed by Friday, July 13, 2001 so the contract could be presented to ATPAM’s Board of Governors at their July 14th meeting and the membership after that. Mr. Sprecher promised to send his changes by the afternoon of the 10th and proceeded to outline during the telephone conversation some of his concerns. Calls were placed to his office on Wednesday, July 11th because the promised changes did not arrive the previous day. However, contact was not made with Mr. Sprecher until Thursday, when he promised to send the changes that afternoon. While he pointed out he would not be pressured by the Union’s timeline; he did, in fact, send his changes as promised. The Union negotiators sent out their response and proposed they meet again on Friday, July 13th.

The meeting was held on Friday, July 13, 2001 and Mr. Sprecher described his concerns to Mr. Reilly and Ms. Von Klug.

The Welfare language for the 4th and 5th years of the agreement needed to state that the contribution amount would be re-negotiated. Mr. Sprecher requested there be no references to the Actuaries’ recommendation. He also wanted more time to re-negotiate this amount and less time for an arbitrator to hear and decide (if an arbitrator was needed, due to the fact that both parties would not be able to agree on an amount).

Complex language for the annuity clause stating the intention of both parties is that the annuity contributions will continue in future years to come from the wage increases.

Questions regarding the out-of-town language. Currently Equity has one out-of-town contract that states the out-of-town rate (which is considerably higher for the Stage Managers, than the amount they would receive in any size house on Off-Broadway) continues for the Off-Broadway engagement. ATPAM insisted on parity with the Stage Mangers agreement. Mr. Sprecher would not agree that if the Stage Manager came in at a higher salary, then the Company Manager would receive the same. Mr. Sprecher said he plans to eliminate this contract during his Equity negotiations.

Delete the July 1, 2001 date for the termination clause for Press Agents. This clause states that for all productions opening after July 1, 2001, a Press Agent can be terminated upon giving notice to the theater, if the production has run 26 weeks or more. The League wants this clause to be eligible for all productions, including the ones that opened before July 1, 2001.

Delete the retroactive payment requirements if the Press Agent is required to perform work after termination, he/she will then be eligible for retroactive salary from the date of termination to the closing date.

Mr. Sprecher proposed indemnification language that only covered the employees for credit card purchases.

We also discussed a few other minor issues, but these were resolved in this meeting and not brought up again.

The Union finally agreed to the Welfare requests made by Mr. Sprecher and crafted a compromise for the Annuity language. They also drafted language for the out-of-town clause. The two sides debated the Press Agent termination issue. The Off Broadway League stated this was a major issue for them. Indemnification was also discussed and the Union felt their points were heard and accepted by the other side, until they received a fax from Mr. Sprecher late in the day on Friday, July 13, 2001 that proposed full indemnification for Managers, but only credit card indemnification for Press Agents.

Mr. Reilly and Ms. Von Klug discussed Mr. Sprecher’s concerns with the ATPAM Off-Broadway Negotiating Committee. There was a disagreement regarding the July 1st date being removed. It was agreed that this date was clearly discussed in the negotiations on Friday, June 29, 2001.

The Union sent via fax and email on July 13, 2001 the contract and back up on these and the other issues to the Board for review.

The ATPAM Board of Governors meeting was held on Saturday, July 14, 2001, in Chicago, prior to the IATSE 64th Triennial Convention. The Board as a whole reviewed all the documents sent by the Lead Negotiators. Board Members, Nick Kaledin and Barbara Carroll, who also serve on the negotiating team, spoke to the various issues that had arisen during the negotiation. They also answered the numerous questions posed by other Board Members. At the end of a lengthy discussion, it was the sense of the Board it should approve the contract in its July 13th form with a couple minor adjustments and to send the contract to the entire membership for ratification.

Because both Ms. Von Klug and Mr. Sprecher were away for the week of July 16th, Mr. Reilly discussed the four remaining items (designated by the ATPAM Board of Governors in their meeting on July 14, 2001) with other members of the Off-Broadway League Committee; a side letter designating the IATSE Annuity Fund for Off-Broadway (whether this is temporary or permanent), the indemnification language going beyond credit card purchases, the out-of-town language and the Press Agent termination date and retroactivity clause. These committee members indicated to Mr. Reilly that they believed we could jointly resolve these issues.

On Tuesday, July 24th, the Union initiated a telephone conversation with Mr. Sprecher and Ms. Byrne. Mr. Sprecher stated the termination language for the Press Agents was "a major issue". He stated there was "no middle ground". Mr. Reilly and Ms.Von Klug offered numerous times to meet with Mr. Sprecher and Ms. Byrne to discuss and find a compromise for these outstanding issues (particularly the Press Agent issue) but Mr. Sprecher refused. He stated that we must remove the July 1st date on the termination language or there would be no contract.

The Union sent a follow up letter to Mr. Sprecher, stating the Union felt a meeting would be both productive and important. The letter requested Mr. Sprecher call at his convenience.

After no response from Mr. Sprecher, on Wednesday, July 25, 2001, Mr. Reilly again initiated an off-the-record with other Off-Broadway League Committee members, who indicated Mr. Sprecher would accept a telephone call from the Union.

A meeting with the entire ATPAM Negotiating Committee was held on Thursday, July 26,2001 in which the current state of the negotiation was discussed. It was decided that the Union would agree to delete the July 1, 2001 date from the Press Agent termination language, if the League would agree to the Union’s requests on full indemnification for all employees, a side letter stating the IATSE Annuity Fund is our designated fund and a re-opener request for the out-of-town language (if Equity, or another union, negotiates a better deal, both parties agree to re-open the subject for further negotiations).

A call was placed to Mr. Sprecher on Thursday, July 26, 2001, who accepted the removal of July 1st in the termination language but refused to accept full indemnification for Press Agents, a side letter regarding the IATSE Annuity Fund and he withdrew the out-of-town clause. Several more telephone conversations ensued and Mr. Sprecher agreed to the IATSE side letter and full indemnification for both Press Agents and Managers. However, he brought back the out-of-town clause, stating the clause would give parity with Equity to Managers but not Press Agents and that he would agree to a side letter stating such. The Union refused, reiterating the Union negotiators had accepted in good faith that the July 1, 2001 termination date was his "deal-breaker" and had presented his argument to the Board and the Committee, gaining acceptance of his terms. The Union offered again the re-opener language as a suitable compromise, which he refused. Mr. Sprecher then changed his mind and insisted on the language generated on Friday, July 13, 2001 that states there would be no parity with Equity.

On Friday, July 27th, Mr. Sprecher placed a call to Mr. Reilly stating he would not give in on the out-of-town clause. Mr. Reilly and Ms. Von Klug called Ms. Byrne and Mr. Sprecher back and Mr. Sprecher stated he wanted the original language drafted on July 13,2001. He again gave an ultimatum that the Union was to accept his demands or there would be no contract. When asked for a letter outlining his position, Mr. Sprecher stated that he "did not put ultimatums in writing."

On Friday, July 27th the Union sent a letter requesting he consider ATPAM’s original offer that the July 1st date would be removed, if the indemnification was expanded to both Managers and Press Agents, a side letter would be generated designating the IA Annuity Fund and the out-of-town language would include a re-opener.

On Tuesday, July 31st, Mr. Sprecher and Ms. Byrne called at 11:00 a.m. to say that as representatives of the Off Broadway League they refused ATPAM’s offer and they were prepared to accept the consequences.

It was the sense of the Union and the Off-Broadway Committee that the telephone call was a clear indication from the Off Broadway League that they would not return to the table and that talks had broken down.

As a result, ATPAM has sent out Interim Agreements to all of the Off-Broadway employers and the ATPAM members employed on Off-Broadway that must be signed and returned to the Union office. This Interim Agreement incorporates ATPAM’s last and best offer to the League. It is imperative that these contracts are signed, to ensure continued coverage for the ATPAM members employed on Off-Broadway. In addition, it states that all terms and conditions are retroactive to July 1, 2001 (the expiration date of the Off-Broadway League contract).