Countless studies, articles and opinions have emerged recently to explain why film and television productions (especially independent productions not financed by studios) have fled California. Lack of competitive tax credits? Lack of streamlined processing for permits for locations? Increased cost of locations? Financial strain left over from the 2023 strikes? Stagnant streaming growth? Loss of prior revenue?
Yes. To some extent, all of these issues contribute to the problem…but, there is a more significant cause that no one is thinking about and, with a little creativity, the Alliance of Motion Picture and Television Producers (AMPTP) can propose something to the unions that will solve the problem.
ISSUE NUMBER ONE: minimum hourly rates in California for below-the-line union members are amongst the highest in the country which is compounded by the fact that the highest percentage of unemployed (and employed) union members live in California.
If the AMPTP was smart, it would propose hourly union rates for Los Angeles (California) that are lower than rates in other production cities. How much lower? Low enough to mean something for budgets up to a reasonably high range. Knock at least 25-30% off all hourly rates in all crew categories for any production that shoots in California (which will also reduce pension and health payments, but reduced payments are better than no payments at all). Call it an enticement. Call it smart business. Call it supply and demand for labor in California falling in love. Call it an experiment until the next negotiating cycle…
…not to mention, how would below-the-line unions look if they reject the concept? “Yeah. We know the vast majority of our members live in Los Angeles (California) and yeah, we know that lower hourly rates will attract productions and jobs like moths to a flame…but, it’s more important that we maintain higher hourly rates even if that means significantly higher unemployment for the majority of our members.. and even if this means they have to move to another state to find work.” Can you imagine how union members living in California would feel about that? They’d show up at the union offices with torches and pitchforks.
ISSUE NUMBER TWO (which ties into Issue Number One): union members are being allowed by their union to work on non union productions (which are infinitely more prevalent), which wrecks havoc on non union shoots which don’t shoot union because the minimum hourly rates are too high.
This is a clever maneuver that below-the-line unions employ time and time again to inflict the most damage on film and television productions…particularly in California. They permit their members to work on non union productions while, at the same time, encouraging the members to update the union on any non union productions they are working on. In a vacuum, this ‘non union’ option for union members is progressive and productive and commendable. HOWEVER, the below the line unions have learned over time to weaponize this goodwill by using union members as trojan horses to flip non union workers during a non union production, which punishes and severely cripples that production’s financial structure. And where do the highest percentage of productions get ‘trojan horsed’? That’s right….where the production heart beats. California.
Significantly lower hourly rates in California will strongly discourage non union productions from existing or staying away from California because the new rates will be a lot more competitive with non union wages and might encourage productions to choose union over non-union.
Of course, below-the-line unions will cry ‘bloody murder’ and kick and scream and go on strike….but, if the AMPTP truly makes productions in California a top priority above everything else, they can dig in their heels as well because he who has the gold makes the rules.