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ATPAM: News: HL0402D

LETTER TO MEMBERSHIP

STATE OF THE UNION

January is the month when America’s President gives a "State of the Union" address. It is also the month when ATPAM’s elected officers and Board report to the membership on the state of our Union.

We are pleased to report that, notwithstanding ongoing challenges and even some disappointments, the state of our Union is strong and we are making progress on several fronts.

The past season was a banner year for ATPAM. Along with production in New York and on the Road, employment levels nationwide reached an all-time high. All of our major collective bargaining agreements have been renewed and continue in effect. Notably ATPAM successfully completed negotiations with Manhattan Theatre Club to represent Managers and Press Agents at the newly restored Biltmore Theatre on Broadway. Off –Broadway ATPAM entered into an agreement with Dodger Stage Holdings for their soon to be opened Off-Broadway theatre complex on 50th Street in close proximity to the Theatre District. That agreement is important because for the first time ATPAM will represent a House Manager in an Off-Broadway Theatre. This is a major breakthrough and will set a pattern for future negotiations as Off-Broadway continues to mature and change. ATPAM is working to develop special contracts for unique employment situations in the not-for-profit sector and other small theatre/ low budget productions. ATPAM has reached agreement with the new operator of the Post Street Theatre and Marines Memorial Theatre in San Francisco to allow use of the Off-Broadway MBA in those venues. The Union is near completion of contract renewal talks with the Music Center in Los Angeles. Under the new agreement ATPAM will represent the House Manager of the spectacular new Disney Hall which opened this season. The agreement will also be expanded to include a contract for the Press Agent engaged to service the new Dance Series presented by the Music Center.

The Union’s finances are strong. Effective management of the budget and investment portfolio have increased the value of the Union’s assets, while also providing adequate funding of the daily operation of the Union’s business. The audited "Statement of Activities" will be posted shortly on the Union’s web site and the entire audited financial statement prepared by the Union’s independent auditors, Lutz and Carr, will be available from the Union office to all members in good standing.

ATPAM is aggressively pursuing grievances and arbitrations in the interest of the membership. During the past season, ATPAM prevailed in an arbitration brought against the Union by the League of American Theatres and Producers regarding the right of the Union to hold surety bonds pending completion of an employer compliance audit of the show by the Union’s Pension and Welfare Funds. (the complete opinion and award is posted on atpam.com.) ATPAM recently settled an arbitration and court case brought against the Union and the Union’s benefit funds by the Nederlander Organization and an ATPAM Member with regard to her employment status as a member of the collective bargaining unit represented by ATPAM. The terms of the settlement will position ATPAM well in future negotiations to deal with members of upper-management being inserted into the ATPAM unit without the agreement of the Union solely for the purpose of creating benefits eligibility and vesting free pensions out of the .045. As a result of this settlement Nederlander will also file delinquent house manager contracts for venues operated in Los Angeles and Detroit. ATPAM has filed for arbitration with regard to the failure of a League Producer to recognize ATPAM and file appropriate contracts for the Las Vegas production of the Broadway show MAMMA MIA. That arbitration is scheduled to be heard later this year. ATPAM has filed for arbitration regarding the failure of certain League employers, including Shubert, to pay contractually required payments related to the filming of "B-Roll." That arbitration is also pending. ATPAM is aggressively pursuing failure of the new management of the Tony Awards Production to file appropriate contracts in connection with the presentation of that show despite a long history of ATPAM jurisdiction. In addition to the television broadcast, The Tony Awards is a theatrical production that sells tickets to the public and employs ATPAM members working in their craft in a major venue in Midtown Manhattan. The seriousness and high visibility of this situation may cause it to erupt into a full-blown labor dispute later this season. It may also lead to disciplinary action against certain ATPAM members for engaging in anti-union activity. The Union is making every good effort to resolve this matter but is currently receiving no cooperation from the employer or the League. In fact the League has denied ATPAM jurisdiction all together and has claimed, speciously, that ATPAM has no standing to arbitrate this matter.

The Union has made significant progress in enforcing the terms and conditions of our collective bargaining agreements. These efforts have included assessing fines against members who are late filing their individual contracts of employment as well as for those caught working in ATPAM jurisdiction without contracts. The Board instituted a policy of accepting only one contract for a company or house manager per attraction as required by the MBA and one Press Agent and Associate per the MOA unless the producer/theatre operator requests additional contracts and the Union agrees to accept them based on the information provided. The purpose of this rule is to prevent filing of phony term contracts solely for the purpose of manipulating benefits eligibility requirements. That practice is detrimental to the general membership of ATPAM because it dilutes value of the Union’s pension fund assets and potentially weakens the value of our individual defined benefit pensions.

Not all of the Union’s organizing programs have met with success. ATPAM’s efforts to organize the new Regional Performing Arts Center (RPAC) in Philadelphia fell short. The effort required significant political lobbying at the state and local level. That effort began too late to be fully effective. It should also be noted that the IATSE was successful in organizing the stagehands in the venue, but was unable to assist ATPAM. Learning from that experience, the Union is now focusing its efforts on obtaining recognition at the new venue planned for construction next to the Staples Center in Los Angeles. That complex will house a hotel and 7000 seat theatre which may eventually become home to numerous award shows including the Academy Awards. In New York, after two years of intense organizing efforts, ATPAM recently broke off talks with members of the Casting Society of America. Efforts to organize the Casting Directors proved more complicated than either side initially had hoped. After being contacted by the Casting Directors, ATPAM devoted significant time and effort to this project over a period of more than two years. The Union looks forward to reopening those discussions if and when the Casting Directors become more committed to organizing themselves and accepting the responsibilities of union membership as well as the potential benefits.

In September, ATPAM celebrated itself with a very successful 75th anniversary party at Gallagher’s Steak House in New York. The event was attended by nearly 300 members and friends. The event was reminiscent of an old fashioned Broadway opening night party.

ATPAM has been instrumental in the formation and growth of the new Coalition of Broadway Unions and Guilds (COBUG) in the aftermath of the September 11, 2001 tragedy and the Broadway Musician’s strike last season. Among the many initiatives undertaken by the Coalition are efforts to improve safety in Broadway Theatres for both patrons and employees. The Coalition will also soon offer a college tuition "529" savings plan for union members.

ATPAM’s Manager Chapter has been holding meetings to discuss safety issues in Broadway Theatres and has formed a sub-committee to advance this issue with both COBUG and the Theatre Owners.

ATPAM Members recently approved Constitutional amendments improving the Union’s life insurance benefit and modernizing the Union’s rules regulating the investment of Union assets.

ATPAM participated actively in lobbying efforts in Albany to pass COBRA subsidy legislation designed to assist workers in the performing arts.

The Union has entered into an agreement with a discount drug card company to provide cards to all ATPAM members who want them. There is no charge for the cards to either the Union or the individual members who will receive a mailing and application early in 2004. This benefit is also available to the Union’s large and growing retiree membership.

News in the area of Pension and Health benefits is mixed. It is important to note that the Pension and Welfare Fund are legally and financially separate from the Union itself. Those Funds are jointly Trusteed with the League of American Theatres and Producers. The Union does not have unilateral control over either the operation of those funds or the benefits provided to our members. Many other employers nationwide contribute into these Funds on behalf of ATPAM members, but do not have trustee representation on our Funds.

The Union Trustees of the Pension Fund were recently successful in delivering a major increase in Pension benefits for current and future pensioners. However, the protracted downturn in the stock market makes it unlikely that there will be any significant additional increases in the near future.

After enacting painful cuts in eligibility requirements for health insurance in 2001, the Welfare Fund Trustees have worked diligently to deal with the deteriorating financial condition of the Welfare Fund. Those efforts have begun to bear fruit. Soon to be released audited financial statements of the Fund show that the actuarial assumptions provided to the Trustees earlier in 2003 have proved to be inaccurate. The financial projections were based on faulty assumptions that did not include the actual effect of the new eligibility rules. While the condition of the Fund is still not good, it is also not nearly as dire as was previously forecast. The prior forecast prompted the Management-designated Trustees to propose draconian cuts in benefits and shifting of costs onto the Plan Participants effective January 1, 2004. The Union Trustees were not convinced of this approach and offered a more modest proposal of benefit changes. The Management-designated Trustees took a "my-way or the highway" approach. As a result the Trustees deadlocked over this issue and agreed to submit the matter for arbitration. In the interim, the release of the updated actuarial projections, based on the new audited numbers, confirms that the original position of the Union-designated Trustees was indeed the correct and prudent course of action. At the upcoming winter meeting of the Trustees, the Union-designated Trustees will resubmit an updated version of their original proposal for consideration and approval. This list includes a proposal to offer longer continuance without COBRA after leaving covered employment. The membership has been heard and the Union –designated Trustees are attempting to respond in a positive manner.

What this turn of events brings into sharp focus is that, while we have a serious problem, there should not be a rush to judgement to slash and burn member benefits simply to improve imprecise bottom line projections immediately prior to the next round of collective bargaining. The prudent actions and determination of the Union-designated Trustees and the hard work of our Fund Office personnel in the face of intense pressure and excoriating lectures from the League and its Trustees have paid off for the membership. We have successfully kept our benefits intact for over a year while this matter is properly studied. Will periodic plan-redesign be necessary based on changes in health-care delivery systems? Yes. Will increases in employer contributions to the Fund also be necessary? Of course. Will ATPAM and the League be required to address this issue in upcoming collective bargaining? Absolutely. It is a mandatory subject of collective bargaining.

However, with the cooperation and good will of our employers, who claim to value our services, there can be a positive outcome to this crisis. Working together we can maintain the high level of health insurance benefits we have historically had as part of our compensation package. But the hard truth is that until the League employers accept responsibility to do their part, this will continue to be a difficult and painful journey.

Consequently, the single most important item for our Union to focus on is upcoming negotiations with the League of American Theatres and Producers. We must remain united and present a unified front. The Union has already appointed an advisory committee to identify issues and assist our Negotiating Committee to formulate clear and compelling proposals to present at the table. The membership will shortly begin receiving regular updates on the status of preparations for negotiations by blast email. The Board and Officers are committed to open and regular communication with the membership at large. We now have the infrastructure to accomplish that successfully.

While we can be proud of our accomplishments over the past year, there remains much to be done. As we move forward, positive support and unity of purpose within the membership is this Union’s greatest asset. Working together we can make a positive difference in our quality of life. That was the purpose of ATPAM at its founding 75 years ago and it remains so today.

Respectfully,

For the Officers and Board of ATPAM

Gordon G. Forbes
Secretary-Treasurer
New York City

January 23, 2004