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Finance Recommendations

The Complete Restructuring of Actors’ Equity Association

Why Not Create an Actors’ Equity Association that Works for the Modern-Day Actor? 

Time and time again, we are shown that Actors’ Equity does not work. In business, when something is recurrently not working, we get restructure or liquidate. I say we do both in regards to the Union. Obviously I can’t go into all of my ideas for the restructuring, but I give below a few points regarding what the new Actors’ Equity could look like.

Access to Healthcare for All Actors

It’s no secret that when you sign the “imaginary magical Ursula the sea witch scroll” to become an actor, you’re trading in a normal life to chase after your dreams. I knew when I graduated NYU that I was accepting this fate. I was ok with missing holidays and other major events to do shows. At that time it was my passion. I also understood that I was not going to have access to high quality health care. I find it laughable when creatives blame the American health care system when they choose a profession that notoriously does not offer it, but I digress. 

Why not have actors pay Equity for base level health insurance? A model like this occurs at universities. For example, I choose to opt into UM’s health care system and pay around $2,000 up front for a whole year of great health care coverage. Maybe Equity can adopt something of this nature? An actor can pay Equity to get health care for a certain amount of time, but not be considered Equity status in auditions or productions. There could be different price plans to satisfy an actor’s needs. This would also give Equity the pocket cash it needs and the union could use this gateway as an enticing point to bring potential actors in to pay for a full membership. 

I want to also bring up how Equity actors receive their health insurance. Sid Solomon, a member of the Union detailed it for me saying “The Equity-League Funds are a Trust established jointly by Equity and the Broadway League. They're administered by a Board of Trustees, half of whom are appointed by Equity and half of whom are appointed by the League. Actors' Equity does not control their actions.” Union actors log onto equityleague.org to access their portal. So, is it fair to say that Equity should even adhere to giving actors health coverage. 100%. Equity should take responsibility for their actors and bring in house all health care, 401K, and retirement benefits. You still have to be a member to receive benefits, so Equity is solely responsible.

Leveraging Star Power

It’s no secret that many Hollywood stars use Broadway to hone their craft, diversify their acting portfolio, and reunite with their creative selves. These celebrities use a loophole to get into Equity via being a part of SAG/AFTRA. Why not make these celebrities pay a higher entrance fee? They can afford it. Celebrities currently pay a $400 fee towards the total $1,700 membership. I think Equity should require celebrities to pay $10,000* to join the Union if they’re not already members. In addition, this money should come out of the celebrity’s own pocket and not be included in the show budget. Maybe even have them pay another fee every time they do a show once they’re members. This sounds egregious, but it’s helping Equity keep its members employed. It would disincentivize producers and stars to embark on such projects so that the opportunity isn’t taken away from an existing Equity member. If the producer and creative team want the star, they’ll make it happen no matter the price.

*Side note- if a non-celebrity performer is from a sister union and they want to become part of Equity, they should pay $5000.

Auditions to Get Into Actors’ Equity

There are many horrible Equity actors. And some of them are on Broadway! In my theatrical training, I was under the impression that being a part of Equity meant that you were the crème de la crème of the acting world. This is not true. So, as a way to understand incoming members and their talent, why not hold auditions to get into Equity alongside the traditional ways. This process could even be made into a competition, create a great marketing campaign for the Union, and draw buzz for potential new talent. I suggest having the talent’s first year membership be covered, but then subsequent years be paid by the actor. This then allows another revenue stream for the union and gives talented non-Union actors a chance to join.  

Producers Producing from the Heart

 Taking a information from Tom’s playbook, producers should be producing content from the heart, rather than quick financial successes. Also, producers should be in constant communication with all creatives involved in the productions. According to Six Sigma/Dr. Demming’s theory of management, this technique creates ownership when an employee is working on a project. If a manager, or in this case a producer, communicates with the employee (ie asking for their input and any problems they’re facing) then the overall morale is boosted, people feel more ownership over their work, and efficiency is elevated.

 Renegotiating with Local One and Others Unions

Local One does valiant work and puts themselves in life threating situations to make sure a production gets put up on time. Their expertise also supports the longevity and quality shows. But the union has gotten away with financial aspects that are egregious and are scoffed at by outsiders.

The pandemic has paved the way for theater owners to do what they’ve always wanted to do- lowering union pay. It would be considered a power move by these entities to take back control from unions that have become too greedy. To show good faith, ticket prices should automatically be lowered to demonstrate to the public how theater owners are trying to make a difference.

If no embarking on these negotiations, the optics create a narrative where theater owners and producers look weak; not wanting to succumb to angry union picket lines and bad press. But, remember, if it wasn’t for theater, these union members wouldn’t have a job. In total transparency, I feel I am unqualified to give any more recommendations about unions. There are more qualified professionals that have published research, so feel free to research on your own behalf and come to your own conclusions.