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The Movement Image Editors Guild (IATSE Native 700) has warned members that as contributions to the trade’s pension and well being plan drop, the union will now not provide free profit extensions to the numerous members who’ve confronted lean employment choices in current months.

Native 700 instructed members in a memo despatched Sept. 4 that because it continues to see reductions within the quantity of hourly well being plan contributions coming into the Movement Image Trade Pension & Well being Plan, the union presently “can not take into account” additional cost-free profit extensions. It’s understood that Native 700 will cease offering COBRA-free premiums and this is applicable to all MPI plan members and isn’t restricted to these in a person guild or union.

Within the memo, Native 700 nationwide government director Cathy Repola defined that the pension and well being plan is “persevering with to see reductions of greater than 20% as in comparison with 2022. This contraction of labor was anticipated and is exactly why, throughout this yr’s Fundamental Settlement negotiations, we lowered our assumptions of hours. Whereas we’re heading in the right direction to fulfill the brand new assumption, we additionally should be sure that energetic and retiree well being plans preserve a sure variety of month-to-month reserves.”

Disney, Warner Bros. Discovery, Paramount International, NBCUniversal and different leisure giants make common contributions to the MPI plan primarily based on the whole variety of hours labored by IATSE members. IATSE introduced the ratification of a brand new three-year Fundamental Settlement on July 18, which included new streaming residuals to deal with a $670 million shortfall within the plans.

IATSE faces a tricky balancing act of sustaining sufficient reserves within the pension and well being coffers to pay out for the older members who’ve paid into the system for years. The invoice for extending COBRA premium-free advantages to almost 14,000 members has to this point price $83 million, based on the memo.

“The Administrators can not let the reserve ranges proceed to fall, and, subsequently, we can not take into account any additional varieties of cost-free profit extensions, not less than not now,” the memo explains. “Our deep want to proceed to assist should align with our fiduciary duty to the monetary safety of the plans.”

The measure underscores the dilemma that leisure staff face following the twin SAG-AFTRA and WGA strikes in 2023 and general work slowdown. Acknowledging the “excessive hardships so many [workers] are persevering with to face attributable to inadequate employment alternatives,” the memofrom the Editors Guild (which with roughly 9,000 members is the second largest of the 13 IATSE Locals that work underneath the Fundamental Settlement) explains as background that the administrators “have been in a position to provide premium-free COBRA for a lot of months” and that two extra profit durations are already accepted (these starting Aug. 1 and Sept. 1) “which is able to incur further prices.”

The memo contains further details about help, together with well being plan choices and a hardship initiative. It’s understood that Particular person Account Plan hardship withdrawals can be found to all plan members.

Selection  has reached out to IATSE for remark.

Right here is the complete Native 700 memo:

Pricey members,

For these of you lucky sufficient to be working, the dimensions wage will increase for the brand new Fundamental Settlement and all Native 700 Agreements are efficient as of August 4, 2024. The brand new wage charts haven’t but been finalized for the Majors, Unbiased, and New York Majors, as we recognized some discrepancies presently underneath dialogue with the AMPTP. We are going to preserve you apprised as we work to finalize the implementation of those new charges. Please notice that any delayed will increase in scale will likely be remedied retroactively. 

We’re carefully monitoring the general work ranges by means of the hourly contributions being made to the MPIPHP. We’re persevering with to see reductions of greater than 20% as in comparison with 2022. This contraction of labor was anticipated and is exactly why, throughout this yr’s Fundamental Settlement negotiations, we lowered our assumptions of hours. Whereas we’re heading in the right direction to fulfill the brand new assumption, we additionally should be sure that energetic and retiree well being plans preserve a sure variety of month-to-month reserves.

I do know that a few of you might be being confronted with dropping well being protection by means of the MPI Well being Plan. I’ve quite a lot of empathy and concern, however I acknowledge sentiments aren’t going to be a supply of assist. I do need you to know why the MPI Plan Administrators haven’t continued to increase premium-free COBRA presently. Our deep want to proceed to assist should align with our fiduciary duty to the monetary safety of the Plans.   

The Administrators have been in a position to provide premium-free COBRA for a lot of months. In whole, 13,931 members and/or their dependents have obtained help by means of July 31, 2024, with a projected price of over $83 million. There are nonetheless two extra profit durations already accepted (profit durations starting 8/1 and 9/1), which is able to incur further prices. 

The Administrators can not let the reserve ranges proceed to fall, and, subsequently, we can not take into account any additional varieties of cost-free profit extensions, not less than not now.

Every single day, we hear from our members concerning the excessive hardships so a lot of you might be persevering with to face attributable to inadequate employment alternatives. We should proceed to come back collectively and assist each other and search for methods to assist each other. 

In solidarity,Cathy Repola, Nationwide Govt Director