Arbitrator’s Decision Returns Money To Pension Fund
An arbitrator’s decision in a dispute between Actors’
Equity Association and Jujamcyn Theatres has resulted in payments to many
union pension plans, including ATPAM’s.
In 1998, Jujamcyn added a $1.00 ticket surcharge to its
ticket prices to cover "theatre restoration fees" and excluded
this charge from the gross receipts of several of its theatres, thus
reducing the .045% payments to the Tax Relief Fund. Equity objected and
filed a grievance.
An arbitrator ruled in favor of Equity and Jujamcyn was
ordered to make proper payment to the Union pension plans plus appropriate
interest. At the time of the arbitration, $500,000 had been collected and
more than $20,000 is to be divided among the participating union funds.
"We are pleased that the League/ATPAM Pension Fund
will be a beneficiary of the arbitrator’s decision," said
Secretary-Treasurer Gordon Forbes.
Since 1960, producers have been obligated to pay .045% of
gross box office receipts into a Fund to finance various union pension
plans. This money comes from what is known as the Tax Relief Fund and is a
result of the Broadway strike of 1960. Equity went on strike for a pension
plan, causing Broadway theatres to be dark for 13 days. Robert Wagner, the
Mayor of New York City at the time, stepped in and the Amusement Tax was
repealed. That .045% became the pension money for all the unions.
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