Actors' Equity Ratifies New Production Contract
The ratification comes after a tough negotiation period between the League of American Theatres and Producers and Actors' Equity Association. Early this summer, the two sides seemed so contentious that many in the industry thought an actors strike was inevitable. However, the strike was averted on July 12 when both sides reached a tentative agreement. This agreement was not binding until ratified by Equity membership. Ballots were sent out in early August and had to be in Equity's possession by today.
The new Production Contract increases minimum salaries on Broadway by 2% in the first year and 3% each year thereafter. Actors will receive no less than $1,381 per week in the first year of the contract and no less than $1,509 per week in the final year. Stage Managers will receive no less than $2,270 per week for musicals and $1,951 for dramatic productions in the first year with salaries raised in the final year to no less than $2,480 per week for musicals and $2,132 for plays.
As was well documented, the major sticking points between both sides were touring and health care issues. The new Production Contract establishes a sliding salary scale for tours of musicals only. In order to qualify to use a particular tier, producers are required to provide Equity with the average weekly guarantees and the schedule of playing weeks that show the majority of the touring weeks are engagements of one week. In addition, all productions using this program must provide verifiable financial information such as weekly box office statements and settlements, unaudited profit and loss statements and weekly operating expenses. The program also provides for profit sharing by actors and increased salaries after a production recoups its initial investment.
In terms of the health fund, the League has agreed to make significantly higher contributions to the fund. Additionally, producers of tour, who have in the past contributed less to the health fund than the standard Production Contract rates, will now contribute at the higher rates. The Production Contract also protected the Supplemental Workers Compensation fund.
The new Production Contract is valid for 4 years.