Industry challenges: Union’s tough decisions on health benefits
A critical moment for entertainment workers
The Motion Picture Editors Guild (IATSE Local 700) recently issued a stark warning to its members: as contributions to the industry’s pension and health plan dwindle, the union can no longer offer free benefit extensions. This decision comes at a time when many members are grappling with limited employment opportunities.
The financial strain on the health plan
In a memo dated September 4, Local 700 informed its members that the Motion Picture Industry Pension & Health Plan (MPIPHP) is experiencing a significant reduction in hourly health plan contributions. Consequently, the union “cannot consider” further cost-free benefit extensions. This means that the union will cease providing COBRA-free premiums, affecting all MPI plan participants, regardless of their specific guild or union affiliation.
The numbers behind the decision
Cathy Repola, the national executive director of Local 700, explained in the memo that the pension and health plan has seen reductions exceeding 20% compared to 2022. This decline was anticipated, which is why the union adjusted its assumptions of hours during this year’s Basic Agreement negotiations. Despite meeting the new assumptions, the union must ensure that both active and retiree health plans maintain a certain level of monthly reserves.
The broader impact on the industry
Major entertainment companies like Disney, Warner Bros. Discovery, Paramount Global, and NBCUniversal contribute regularly to the MPI plan based on the total hours worked by IATSE members. The recent ratification of a new three-year Basic Agreement, which includes new streaming residuals, aims to address a $670 million shortfall in the plans.
Balancing act: Reserves and benefits
IATSE faces the challenge of maintaining sufficient reserves in the pension and health funds to support older members who have contributed to the system for years. Extending COBRA premium-free benefits to nearly 14,000 participants has already cost $83 million. The memo emphasized that the directors cannot allow reserve levels to continue falling, making further cost-free benefit extensions unfeasible at this time.
The human element: Workers’ hardships
The dual SAG-AFTRA and WGA strikes in 2023, coupled with an overall work slowdown, have exacerbated the difficulties faced by entertainment workers. The Editors Guild, with approximately 9,000 members, is the second-largest of the 13 IATSE Locals operating under the Basic Agreement. The memo acknowledged the “extreme hardships” many workers are enduring due to insufficient employment opportunities.
Assistance and resources
The memo provided additional information about available assistance, including health plan options and a hardship initiative. Individual Account Plan hardship withdrawals are accessible to all plan participants, offering some relief during these challenging times.
Looking ahead: Wage increases and monitoring
For those fortunate enough to be working, the scale wage increases for the new Basic Agreement and all Local 700 Agreements will take effect on August 4, 2024. However, the new wage charts have not yet been finalized due to discrepancies currently under discussion with the AMPTP. The union assured members that any delayed increases in scale would be remedied retroactively.
Monitoring work levels
The union is closely monitoring overall work levels through the hourly contributions made to the MPIPHP. Despite the reductions, the union remains committed to ensuring that active and retiree health plans maintain the necessary monthly reserves.
A call for solidarity
The memo concluded with a call for solidarity among members, urging them to support one another during these difficult times. The union emphasized the importance of coming together and looking for ways to help each other.
Additional resources
For those facing the loss of health coverage through the MPI Health Plan, the Entertainment Health Insurance Solutions (EHIS), a joint program of MPTF and the Entertainment Community Fund, offers assistance in seeking health insurance options. More information about this program can be found here.
Additionally, a hardship initiative approved last week allows participants to withdraw money from their Individual Account Plans (IAP) for a second time under certain conditions. Members are advised to consult with a tax consultant before taking this action due to the serious implications involved. Further details will be released on September 13th, and more information is available on the MPIPHP website.
In these trying times, the union’s message is clear: solidarity and mutual support are crucial as members navigate the challenges ahead.