I'm in the process of pre-production for a film with a budget under the $2.5 million mark. I keep going back and forth between having a union film/not having a union film. I come from a union background. My dad was a union worker/exec. Other family members and friends are/were union people. In my past professional background in politics, I worked extensively with unions, and supported their causes. This issue keeps me up at night. On the one hand, having a union crew will bring me a lot of professionals with great expertise levels at every position. On the other hand, not having a union crew will save a lot of money that I can use for other purposes, like festivals and other marketing costs; setting up distribution; and other admin costs. The same goes for DGA rules, which are pretty impossible to adhere to, in my opinion, in a film under the $2.5 mark - even without mutiple locations and big-dollar actors. Tax credits can help a bit, to be sure, but that money comes in after the fact, and I can't even factor that in a working/shooting budget. And in my state (Nevada) it's not even a consideration that I can count on - since the state government can alter the amounts this year, and since we might not even get the approval on it. And I'm working with private capital. It's a troubling dilemma for me. I wish I could just say "union across the board!", but I can't, and that really sucks.
Producing : The Guilt of Going Non-Union by Bill Costantini
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You have no responsibility nor obligation to any union, nor should that even be a consideration on your choice. Your responsibility is to your investors and your future audience. How can you perform as best for them with the resources you have available. It's as simple as that. The union then becomes as any other brand on the market which you can utilize to provide the best for those people to whom you do owe a debt.
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At $2.5 million you are well within IATSE tier one, where the key rate is $24.53/hour for keys and department heads (plus $83 HW/fringe per day) and average crew is $20/hour. The DGA low budget agreement under $2.6 has no minimum rate for directors (fully negotiable) and 50% rate for staff. The SAG low budget agreement is $630/day and $2190/week plus fringe. For a crew of 50 running 12 hour days on a 20 day schedule your numbers should be around $400,000 to $500,000 below the line in labor costs (the high end includes fringe assumptions). You'll have to calculate your Teamster rates based on your need. A non Union crew the same size, with acceptable skills will probably run you $250,000 to $350,000 plus HW. The real question comes down to hiring local DP, Keys and Department heads or bringing them in from LA. That can become a bigger cost factor than choosing between local Union and Non Union crew members. I feel for you. But at $2.5 your threshold weighs more toward Union than non. At less than $1.5 it tips the other way by a larger margin. Good luck.
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Preston, I totally agree. Thanks for your comments. David, Thanks for your comments and analysis. My assumptions are a little different, though. I'm looking at a talent budget of at least $1 million; a music licensing budget of around $300,000; and a festival/conference/marketing budget of at least $100,000; plus bonding/insurance and legal. The unions' stipulations of needing extra people around; additional payments for pensions and other benefits; and things like that make it tough with what's left to work with. The DGA requirements - even on a low-budget agreement - still brings in extra people, and again with benefits. And I can totally forget about the PGA. It's just a whole lot to absorb, and with not much wiggle room, if any. $2.5 million goes pretty fast, doesn't it?
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With $1 million allocated to talent, I'm guessing you're hoping to cast some big names, but if your material is strong, those same names will do your project for cut rate. Look into SAG's Schedule F (if you haven't already) which allows you to pay a flat fee (last time I looked, it was $65k) for cast. Two at that number and you're still well under your current number allowing you to fill out your remaining roles with some respected talent who maybe aren't quite as known/expensive.
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All good, Bill. You gotta put the money where you think you need it. If incentive money is a big factor though, and you can do part or all in another state, I highly recommend New Mexico. Especially Albuquerque. Great crews, great incentives, and ABQ studios and I-25 stages are minutes from downtown. I just did ten months out there and was very impressed. Just watch out for the winds in Spring. We lost video village on the mesa one day. I think the pop up is still airborne and headed for Hawaii.
David, Aw man....I loves me some New Mexico. I'm a bit of a spiritual/mystical kinda guy, and know there are a lot of vortexes that exist in that state. I think it's also the safest state in America, when it comes to natural disasters. Of course, that doesn't help explain the high crime rates in certain areas. And I was on the phone with a guy the other day who got swamped in a dust storm. But I've been to parts of New Mexico, and love the vibes and looks. I think I got my first exposure to New Mexico back in the day when "The Tao of Steve" came out, and fell in love with the state in person when I first visited there. I'd live there for awhile, to be sure, and would certainly consider doing a movie there. My film is going to be shot in Las Vegas in 2016, as long as all things continue to go well and nothing falls; nobody dies, and nobody goes to jail or prison before then. My capital group lives here. Production people are here. I live here. My location shootings are here and I'm getting them at a good price. I have the assistance of local elected officials, and will get good local press. I'm hooked up with a couple local prominent global merchants with Internet audiences and followings that exceed over 10,000,000 people each - some of which may be overlapping, and all of whom are in my target audience. Everything is here that I need except for the major talent and potentially a couple other service providers, all of whom will be imported from L.A. And if any of the production people go south on me during filming...my capital group and I have spots in the desert, and we will take those pieces of....uh...you probably get what I'm saying. But the local guys know how things work here, and I'm sure will be stellar when they have to be. Or else. Heh-heh.
Shaun, Good advice. Thanks a lot - I appreciate it. I think my biggest hurdle with mid-level/low-level salaries will be in regards to the availability of getting the people that I want to get when I want to get them.
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In the spirit of Labor Day, and as a SAG actor, I always hope to see producers use as much Union talent as feasible. I know I can take a role I really like, or work for a director or producer whose work is worthy, for a rather low daily or weekly rate with SAG's blessing under LB and ULB contracts. Add in the crew costs and you start to see costs add up, but always remember, time is money and union crew and talent save you time and deliver the goods with a high degree of dependability. That said, I send best wishes to all my brothers and sisters throughout this amazing and crazy industry, union and non-union alike, on this Labor Day weekend. May our labors of love become our passionate success stories.
Kevin, Thanks for your shared insights. It's all part of my personal struggles, and part of the determining factors in my cost-benefit analysis, too. Happy Labor Day weekend to you, too!
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I've been able to use Tier Zero and pay lower wages but have union people and be able to cover them. Not all unionites will do it, but many will. "The Diary of a Teenage Girl" is one example where I worked it. I knew we needed to get it done "right" but we just didn't have the money. It's also a good way to get union wannabe's onto the union radar - they get permit hired and it's a lovely thing. Might you be able to work that?
Debbie, Thanks for the insights. And wow...."The Diary of a Teenage Girl." "La Mission." "Blue Jasmine." You sure know how to stretch a low-budget buck. Do you work outside of Frisco? I'd like to talk to you, and wouldn't mind if you take a look at this post in the Screenwriting Section I posted last week. https://www.stage32.com/lounge/screenwriting/Story-Path-of-Diary-of-a-Te...
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