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Labor Relations, Hollywood Style


Going all the way back to the Industrial Revolution, the Us vs. Them dynamic that defines labor-management relations has remained remarkably intact. And that’s a good thing. Yes, the relationship is tense and adversarial, and yes, it hasn’t always been productive, and yes, there have been occasions where debilitating strikes and even violence have resulted, but because each side has its own agenda, conflict should be expected.

Lined up on one side are the men and women who do the actual work, who toil long, tedious hours for a defined wage, and lined up on the other are employers who, while grudgingly recognizing the necessity of workers, are committed to not paying them one nickel more than is absolutely necessary. It’s an economic law. You charge for your product all that the market will bear, and you pay your employees as little as you can get away with.

By and large, this relationship has resulted in an equilibrium. Adhering to the principle that there is “strength in numbers,” workers have joined together to form labor unions, and embracing the time-honored belief that “money talks,” business groups have bribed Congress to pass legislation that crippled the labor movement. By “equilibrium” we’re not suggesting that anything remotely resembling “fairness” has emerged, only that there is a stasis of sorts.

Which brings us to the film industry. To be a movie actor, you must belong to SAG (Screen Actors Guild), the actors’ union. Similarly, Hollywood’s bosses are represented by the AMPTP (Alliance of Motion Picture and Television Producers). In many ways, contract negotiations between the Guild and the Alliance are not unlike negotiations between any other parties; it could be the UAW going up against Chrysler, the IAM taking on Boeing, or the Teamsters bargaining with UPS.

[It should be noted that SAG is now known as SAG-AFTRA, having recently voted to merge with AFTRA—American Federation of Television and Radio Artists—but that’s a messy issue, which we won’t get into here.]

But there is one very disturbing way in which SAG’s negotiations with the producers doesn’t resemble those of other unions, and that difference involves a profound conflict of interest. Incredibly, some of the most prominent and influential members of SAG are also producers. It’s true. While these “movie stars” are dues-paying union members who, nominally, do battle with the producers, they themselves are also big-time producers.

You can imagine where their interests lie when it comes to mundane (but critically important) rank-and-file issues such as residuals, new technology, and health insurance premiums. As important as these issues are to 95-percent of working actors, they mean next to nothing to these moguls. Indeed, as producers with an eye on the bottom-line, they’re interested in keeping their costs down, and if this results in their fellow actors receiving a smaller slice of the pie, so be it.

During SAG’s 2009 contract negotiations, some of these actor-producers actually took out advertisements in trade papers urging the membership not to do anything so dumb or reckless as to vote to authorize a strike, presumably because they didn’t want to see actors (whom they themselves employ) rock the boat by interfering with future profits. Of course, a public display of union dissension like this is going to badly undercut any talk of solidarity, which it did.

An actor friend of mine (he’s brave, so he probably wouldn’t mind me mentioning his name, but I shall preserve his anonymity) has recently (in late September) filed charges with the NLRB against these actor-producers. I read his affidavit. It was well-written and compelling. The extent of the alleged “collusion” was mind-boggling.

The four movie and TV production companies (and the executives associated with them) named in the complaint are:

Jersey Films and Jersey Television (Danny DeVito)
The Playtone Company (Tom Hanks)
Smokehouse Productions (George Clooney)
Tribeca Film (Robert DeNiro)

Anyone who believes in the value and nobility of the labor movement is going to root for this NLRB complaint to succeed. Of course, taking on famous movie stars like these guys will be an uphill climb, but it’s certainly worth the effort. And who knows? Maybe the NLRB will provide us with one of Hollywood’s patented “surprise endings.”

David Macaray, an LA playwright and author (“It’s Never Been Easy: Essays on Modern Labor”), was a former labor union rep. He can be reached at

David Macaray is a playwright and author. His newest book is “Nightshift: 270 Factory Stories.” He can be reached at

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