Tag Archives: officer column

Streaming Funds Pension, Residuals in New Label Deal

I am pleased to report that agreement has been reached with the recording industry for a successor Sound Recording Labor Agreement (SRLA). When ratified, the agreement will extend three years, from February 1, 2017 to January 31, 2020.

Besides significant gains in upfront payments—including yearly 3% wage increases, and improvements in pension contributions, health & welfare payments, and cartage payments—the agreement provides for significant additional payments to the Sound Recording Special Payments Fund (SPF), the Music Performance Trust Fund (MPTF), and AFM & Employers’ Pension Fund (AFM-EPF) driven by the companies’ digital streaming revenue.

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The Truth About Right to Work (For Less)

by Tino Gagliardi, AFM International Executive Board Member and President of Local 802 (New York City)

When the National Labor Relations Act (NLRA), the legislation that protects the rights of employees and employers and prevents employment practices that are harmful to workers as well as to businesses and the overall economy, was enacted in 1935, a wide swath of the country immediately and bitterly opposed it. Republican leadership and the business community criticized the definition of “employee,” the act’s encouragement of collective bargaining, and the preservation of employee rights and protections at the expense of employer rights.

This debate, commonly referred to as “right to work,” still rages to this day. However, today’s political climate and the gains the right to work movement has made over the last two decades are making it more potent and dangerous for the labor movement than ever before.

On February 1, Congressman Steven King (R-IA) and Joe Wilson (R-SC) introduced the National Right to Work Act in Washington, DC. Similar legislation has been proposed and defeated in the past, but the Trump Administration, coupled with Republican control of both houses of Congress, could mean that right to work advocates have the political and legislative strength to win a victory at the national level.

Though Congressmen King and Wilson claim that they are fighting for the rights of workers by “erasing the forced-dues clauses” and unburdening Americans from the yoke of organized labor, don’t be fooled. This type of legislation, already passed in 27 states, has nothing to do with worker rights and everything to do with undercutting a worker’s strongest tool and ally—labor unions.

NLRA and Right to Work

Labor unions are vital to the health and vibrancy of a strong, safe, fairly-treated workforce, as well as an efficient economy. After the Taft-Hartley Act banned “closed shop” practices in the United States, unions found themselves advocating for fair pay and treatment of all workers, even those who were not union members. This was not only reasonable, it was a great thing for our communities, our families, and the vibrancy of our country.

This advocacy in “union shop” businesses has resulted in enormous gains for workers, including higher wages, safety laws, weekends, health and pensions, and scheduling practice standards (among others) that are now an assumed part of our daily lives. These protections help us ensure that hard working Americans can secure a decent living for themselves and their families.

Under the guise of benefiting workers, right to work legislation does the opposite. By incentivizing workers to benefit from union advocacy without paying dues, they are encouraging a “tragedy of the commons,” or “freeloader” mindset that ultimately undercuts the financial viability of union work and undermines the power of collective action.

Right to work advocates claim that this type of legislation creates jobs and allows for free-market economic growth. But nationally, wages in right to work states are 12.1% lower ($6,109/year) than in “union shop” states, and employees are less likely to receive health insurance or pensions from employers. Why? Because workers don’t have the strength or protection of collective action and representation that is vitally important.

The Right to Work … for Less

Who actually gains from right to work? The employers. Right to work legislation games the system, working around the NLRA to avoid employment requirements and ultimately takes worker rights from employees.

What workers and musicians across this country must realize is that right to work legislation is an insidious effort by employers to wrestle away the rights of employees. Nothing these politicians and right to work advocates publicly claim to desire is needed. The NLRA already allows for non-union workers to work in union shops, with the only expectation being that they help pay for the benefits they receive from working that healthy and protected environment. So why is it necessary? Ask the employers, large corporations, and political stakeholders that benefit from a weak workforce and the destruction of labor union values. Just follow the money that isn’t making its way into your pocket.

Department of Professional Employees

Tackling Problems Together

Recently, I attended the Department of Professional Employees (DPE) Arts, Entertainment, and Media Industries (AEMI) meeting in New York City. The DPE, which is affiliated with the AFL-CIO, is the largest association of professional and technical workers in the United States.

The DPE AEMI meeting covered three important topics.

1) Legislative and Outreach Director Michael Wasser gave the attendees a preview of the president-elect’s administration and new Congress. Unfortunately, the prospects for labor are rather grim. This is already evident from the president-elect’s cabinet picks, including his nominee for secretary of labor. The Labor Department is responsible in large part for regulating the workplace and overseeing the job market. The proposed nominee has made his opposition to a $15 minimum wage, extending overtime pay, and the Affordable Care Act well known. In addition, it is expected the composition of the National Labor Relations Board will change. Many important decisions that directly affect our members are made by the Board.

2) A problem has developed regarding O and P visas that is of particular concern to our Canadian members. Unprecedented delays in obtaining visas (needed to perform in the US) continue to be a problem. Often the delays are so long, Canadian musicians have to cancel their gigs in the US because the visas have not been processed by US Citizenship and Immigration Services (USCIS) in time. AFM Canadian Office Executive Director Liana White; AFM Legislative-Political and Diversity Director Alfonso Pollard, from our AFM Washington Legislative Office; and AFM Touring/Theatre/Booking Division Director Michael Manley, from our New York Office, attended this DPE meeting and are working with our elected officials to improve the situation.

3) In October 2016, the DPE surveyed a cross-section of professional and technical workers who were not union members. A total of 1,004 workers were surveyed. Some of the insights gleaned from the survey were:

  • A majority identify compensation as the aspect of work they most want improved.
  • Workers desire career advancement opportunities and a voice in decisions that affect them.
  • Professionals identify better pay, benefits, and work/life balance as the most convincing reasons to have union representation.
  • 88% of professionals believe having a contract that details wages, benefits, and rights on the job is a good idea; 60% support a labor union.
  • A majority of professionals believe having a union would improve health and retirement benefits, job security, and wages.
  • Professionals want an effective union that puts members first.
  • Professionals prefer to belong to a union that is responsive to individual members, as opposed to one that is large and strong.
  • Management putting the financial bottom line ahead of quality and service is a top issue faced by professionals on the job, followed closely by poor communication by management.
  • Professionals feel undervalued.
  • Top concerns expressed by professionals for having a union include too much involvement in politics, protection of poorly performing employees, and conflict with management.

As we are all aware, declining membership continues to be a vexing problem for unions. Gaining broader insight into what nonunion professionals are thinking and understanding their concerns provides the union with guidance as to how best to make union membership more appealing. The greater density (unionized workers) a union has in the workplace directly correlates to a union’s strength. Turning declining membership around is a priority for the AFM and the DPE is taking steps to be supportive in this effort.

 

East Coast Music Awards

Bargaining to Begin with ECMA

Pour la version française cliquez ici

Since the writing of this column, the parties have successfully negotiated a successor agreement.

The 2017 edition of the East Coast Music Awards is scheduled for April 26-30, with the host city being Saint John, New Brunswick. During those five days, the city will be immersed in music in every venue, culminating with the gala award event Sunday night. However, in early December, the East Coast Music Association (ECMA) was placed on the AFM’s Unfair List by the Canadian Office.

The ECMA and the AFM had enjoyed a long, mutually beneficial relationship, with the signing of the first agreement in the mid-1990s. Contracts that included pension were always in place for sponsored showcases, events, and the awards show. The AFM would often sponsor an award, and was omnipresent every year with an informational booth, workshops, and seminars on topics of interest to musicians embarking on careers in music.

Two years ago, something changed. The ECMA refused to come to the table and renew the agreement. Although the broadcaster of the awards show signed a letter of adherence, the showcases and other events were not under AFM contract.

Without the renewed agreement and/or a properly executed AFM contract in place, there could be no pension contributions. In addition, recording was rampant and streamed both during the week and well after.

CFM representatives met with four members of the ECMA board in October. It became clear, after considerable dialogue, that a reasonable fee for the musicians was not the issue. Having the “union” involved was, for all the philosophical reasons.

In many of our agreements, including this one, a temporary membership permit (TMP) is required to be deducted from the fees of nonmembers. It seems this became a bone of contention. In Canada, this is an application of the RAND formula, under which nonunion employees have a portion of their wages deducted as their share of servicing the CBA under which they are working.

Using this formula allows a temporary member to be listed on the contract with members, and receive exactly the same services and benefits for the same classification of service, for the duration of the gig. This includes pension and any ensuing residuals, such as New Use. In addition, the TMP fee can be credited toward membership for one calendar year.

If the musician does not take advantage of the credit, those fees find their way back into the music community, through the host local’s outreach at seminars and informational meetings, as well as the sponsorship of awards.

There have been some developments in this rather unfortunate situation, as the ECMA board has contacted our office and agreed to sit down to bargain a successor agreement. Negotiations will take place in Halifax January 18 and 19, with January 20 as a backup date.

It’s our sincere hope that we are successful, the musicians’ performances are protected and properly remunerated, and the CFM and ECMA can once again join forces as partners in the effort to bring East Coast music to the world, and for the world to recognize the musicians that make this truly unique sound.

unionism

“… Indivisible …”

by Tina Morrison, AFM International Executive Board Member and Vice President of Local 105 (Spokane, WA)

My dear brothers and sisters to the North, please be patient, I’ve got a few things to talk about that are primarily a reaction to concerns very much on my mind since the US presidential election.

This article will be turned in first thing Monday, December 19, which also happens to be the day the electoral college will meet and finalize the outcome of this tumultuous US presidential election cycle. Even if there is some kind of unprecedented surprise, it won’t change what we’ve collectively experienced. We are entering a new year with additional new challenges.

As musicians, we don’t always like each other, but when we make music together, we have to listen to each other and blend our respective voices. Everyone loves good harmony; and although there’s real beauty in dissonance, there’s also a sense of relief when it finally resolves. Sometimes it takes a while.

With all of the “isms” that have been thrown around over these past months, I wear my unionism proudly because it takes all of our diversity and builds consensus to come to resolution. We develop consensus for our workplace negotiations, for decisions at our locals, and our Federation. It takes a lot of work, but it’s a great system for giving us a meaningful voice in decisions that affect us. By working together we have helped to create levels of fairness and safety in the workplace. Unionism lives and breathes because we are the union. “An injury to one is an injury to all.”

Unionism gives us a path on which we can find our way through interesting times. We have processes that enable us to work through tough issues and find solutions most of us can live with, most of the time. Unions are necessary to give working people a voice. Recent examples are the strikes in Pittsburgh, Ft. Worth, and Philadelphia.

Employers belong to groups and associations because they realize the value of networking and joining forces around issues and interests, the costs of which are usually covered by the business. We will need to actively oppose anti-union legislation at every level with a special eye on “right to work” (for less) legislation, which undermines our ability to push back.

Music blends many different cultures with themes and variations developed over the lifetime of humanity, but all of it has common threads of tones and rhythms. We care about our family and friends and want them to be safe, happy, and healthy; we want fair treatment and appropriate compensation for our work; we care about our communities; and we want future generations to have opportunities to thrive and live up to their full potential.

The “Ghost Ship” fire on December 2 in Oakland, California, is a wake-up call that there is work to be done regarding safe performance environments, which also support and encourage emerging musicians. “Mourn the dead and fight for the living.”

In this New Year, let’s resolve to listen to each other and blend our voices, embrace our diversity, and stand together against adversity.

… with liberty and justice for all …

jay blumenthal

Electronic CBA Ratification

For decades, the AFM Bylaws have been very specific and clear about the ratification procedure for collective bargaining agreements (CBAs). The integrity of the voting process has been given the highest priority so that bargaining unit members can have confidence in the election process. Additionally, protecting the identity of the voter is imperative, allowing them to vote their conscience without the worry of employer retaliation or member-to-member pressure.

As technology has made electronic voting possible, many members have expressed a desire for locals to conduct electronic CBA ratification voting. Up until the recent AFM Convention, the International Executive Board had been reluctant to endorse electronic voting until such time as locals could ensure the integrity of the process. It was also felt that an in-person ratification meeting just prior to a vote was invaluable, allowing bargaining unit members to ask questions, discuss the terms of the proposed agreement with their colleagues, and hear the recommendations from their local officers and elected rank-and-file committee. In-person voting also motivates members to physically come to the union hall, which is always a good thing. Too often, the only time some members visit the union hall is to pay their dues. In-person voting provides one more connection to the local.

For years, voting by mail ballot has co-existed with in-person ratification voting. Mail ballot was never the preferred method of voting, however, some bargaining units have members who live great distances from the union hall. For these members, in-person voting could present an undue hardship and expense that would effectively disenfranchise them.

While the bylaws now allow in-person, mail ballot, or electronic ratification voting, the requirement remains that all voting must be done one way (either all in-person, all mail ballot, or all electronic). Voting cannot be a combination of two or three methods.

The bylaw passed at the last AFM Convention in 2016 (Article 5, Section 32(d)) allows electronic ratification voting with very specific restrictions. The new bylaw for ratification by electronic balloting states, in part:

SECTION 32(d). Ratification by Electronic Balloting

  1. If it is necessary to hold a ratification by an electronic balloting method (e.g. online, telephone), then all voting shall be done by electronic balloting, provided that ratification by electronic balloting has been authorized by the Local’s bylaws or action of the Local’s Executive Board, and provided that the Local selects an independent organization approved by the International President’s Office to conduct the voting. In all cases, the method of voting must (1) ensure that the member casting the vote is eligible to do so, (2) ensure that the member casting the vote cannot be identified with the vote cast, and (3) afford sufficient safeguards to protect the integrity and security of the voting system. Further, in the case of electronic balloting, an appropriate accommodation must be made for a voter who lacks the technology or equipment necessary to cast his or her vote.
  2. ….

iii. The International President’s Office shall maintain a list of one or more vendors whose electronic balloting services meet the requirements set forth in this Section.

The President’s Office has determined that the following vendors offer services at affordable rates that meet the bylaw requirements for ratification by electronic balloting:

BallotPoint Election Services: http://www.ballotpoint.com/

ElectionBuddy: https://electionbuddy.com/

Election America: http://election-america.com/

This list is subject to change. Please check with the President’s office before conducting electronic balloting to confirm that the vendor you intend to use is still on the list.

Ray Hair

Pattern Bargaining: A Blueprint for Improvements or Concessions?

The perennial objective of unions has been to “take wages out of competition,” as labor-economists, who analyze the supply and demand of labor and patterns in wage, income, and productivity are prone to say. By seeking to standardize minimum wages and benefits across an industry, unions can stabilize wages, prevent competition among workers and employers, and avoid a race to the bottom. More importantly for the AFM, minimum wages across given industries, such as sound recording, film, live TV, and theatrical tours, provide a floor for future improvements in successor agreements.

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Canadian Orchestra

Recommendations for Amendments to Canada’s Copyright Board

Pour la version française cliquez ici.

Last month, I spoke of our renewed efforts to bring Status of the Artist legislation to Ontario. This month, it’s the CFM submission to the Committee of Banking, Trade and Commerce, part of the Senate of Canada, on the operation and practices of the Copyright Board of Canada. With Heritage opening the door to examine and revise so many aspects of the laws that affect culture—and musicians—we felt that it was best to separate our recommendations for the Copyright Board (which are procedural and regulatory in nature), and treat the 2017 s.92 Copyright review as a separate issue.

One of the major issues is the backlog of decisions, which can sometimes take years, as well as sometimes erratic rulings when setting new tariffs. I will skip many of the details of our submission, and focus on the four major recommendations.

Voluntary Agreements

One approach to relieve the board of the backlog of tariff certifications is to consider voluntary licensing, a regime used in countries such as Finland, France, Greece, Israel, and Mexico, which have no rate-setting procedures. In the UK, collective licensing for remuneration is voluntarily agreed upon by contract between the parties. When consensus cannot be reached, a tribunal is utilized to play a part in the process. In Holland, the tariff for performers’ rights are made by agreement with the users, and distributed to phonogram producers and performers on a 50-50 basis. Upon disagreement of share, the High Court in The Hague has exclusive jurisdiction.

Mandatory Mediation

We recommend that all tariff matters before the Copyright Board be subject to a prehearing mediation process, using the mediation programme and case management under the Ontario rules of Civil Procedure as a model.

Expedited Process

An expedited process can be found in the Australian copyright law, which requires that “… proceedings shall be conducted with as little formality, and with as much expedition, as the requirements of this Act and a proper consideration of the matters before the Tribunal permit.” The UK and the US copyright tribunals provide for similar expedition in the case of simple matters.

Another avenue would be to set out specified timelines in the regulations for any matter before the board.

Criteria for Rate-Setting

The CFM was among 70 music organizations that publicly opposed the Tariff 8 decision, which set royalty rates for noninteractive webcasting services in Canada. The decision also brought into focus the need for rate-setting criteria that includes consideration of existing marketplace agreements. The rate, in fact, ignored international standards that support the growth and development of the industry in world markets.

A report written by Marcel Boyer, Professor Emeritus of Economics, University of Montreal, for the C.D. Howe Institute entitled: “The Value of Copyrights in Recorded Music: Terrestrial Radio and Beyond,” concluded that the value of recorded music is approximately 2.5 times greater than the level of royalties certified by the Copyright Board. Boyer continued that the approach used by the board consistently undervalued copyrights in the context of the commercial terrestrial radio industry, and that this flawed approach has been carried over into the determinations for noninteractive webcasting tariffs.

The CFM recommends that specific criteria be used for rate setting, including recourse to comparative market value analysis under s.66.91 of the Copyright Act.

I would like to take this opportunity to encourage all members to embrace the spirit of love, compassion, and giving that is prevalent at this time of year. We sometimes take for granted how fortunate we all are, to have health, family, and relative peace in our time. I wish each of you a very Merry Christmas, and the best to you and yours for a wonderful and prosperous new year.

Creating Visibility Within the Labor Community

joe-parenteby Joe Parente, AFM International Executive Board Member and President of Local 77 (Philadelphia, PA)

Several years ago I wrote an article about the importance of our connection and involvement with other labor organizations in our communities. I feel it bears repeating.

Normally, when we think about the union, we think of our locals and the Federation. That’s where we look first to get work. But there are hundreds of unions out there apart from the musicians union—American unions covering the building trades (electricians, carpenters, roofers, etc.), the American Federation of Teachers, the Teamsters Union, unions of nurses, city workers, hotel workers, sheet metal workers, stagehands, and so on. These organizations represent thousands of union workers and are a valuable resource of potential employment for musicians.

I have (and you may have as well) attended various events held by other unions. On occasion, I have discovered that, these same unions that preach union solidarity and the use of union labor, hire nonunion musicians to provide entertainment for their functions. That is unacceptable. The concept of union solidarity must extend to and include musicians, especially on the local level, where the work is available. It’s up to us to remind them.

To take advantage of these employment opportunities within the labor community, musicians have to be visible to other unions. Not all unions belong to the AFL-CIO, but most do, so I’ll lump everyone under that umbrella. AFM locals should be in touch with their area AFL-CIO to let other unions know that union musicians are available to them.

Get a mailing list with all the contact information for each union and send them information about your local and its members; send them referral lists and CDs of bands in the local. Ask for a calendar of annual events. All unions have some sort of function during the year—banquets, holiday parties, conferences, even conventions. For years, my local has provided a band representing Local 77 (Philadelphia, PA) in the annual Labor Day Parade. Many unions have their own catering hall. They wouldn’t think of having an affair without union bartenders or waiters. Why shouldn’t they feel the same about using union musicians?

However, it’s not only the local’s responsibility to go after work for its members. No one is going to knock on your door and ask if you want to work. Anyone who is working with any type of group—rock band, top 40s band, big band, trio, string quartet, or whatever—has a vested interest in promoting his/her own product. Everyone has a spouse or family member, friend, or neighbor who belongs to some union, somewhere. Talk to them; find out about their union and who the contact person is. Send out your promo packages. Call the union directly to let them know that you’re out there and available to meet their needs.

Nothing brings attention to the American Federation of Musicians more than supporting our brother and sister unions when they are involved in a labor dispute with an employer. Volunteering to play on a picket line or at a rally yields publicity within the labor community that goes much further than you might think toward instilling the idea of using live music. Building coalitions and partnerships within the labor community is how we stay visible and viable.

When you contact other unions, let them know that you use their members when you need work done. If you’re not using union labor, you should be. After all, how can we expect them to use our members, if we don’t use theirs? We can’t allow other members of the labor movement to ignore our union.

Ray Hair

Changing Channels: from Pamphlet B to SRLA, Network Television

I am pleased to announce that the Federation has concluded negotiations with the Broadway League and Disney Theatrical Productions for a successor Pamphlet B Agreement. The new agreement establishes wages and conditions of employment for musicians working on the road in touring theatrical musical productions. The Federation’s Pamphlet B Agreement is administered by the Federation’s Touring/Theatre/Booking Division (TTBD), headed by Assistant to the President Michael Manley.

Despite a rough start in our initial round of bargaining, the Federation, Disney, and the League were eventually able to find common ground during subsequent negotiations, ultimately reaching a progressive agreement that will become effective retroactively after ratification to March 11, 2016 and extend through March 15, 2020.

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