EQ Magazine } Winter 2014

2 EQUITY QUARTERLY 0 1 DUES REFERENDUM 4 EQ Child’s Play Please detach this special supplement from your copy of EQ for easier reading. Please detach this special supplement for easier reading. DUES 2 0 1 REFERENDUM 4 Why the “torn” cover? After 14 years without an increase in dues, current rates are no longer sufficient to cover everything you want us to do for you. In order to respond to this financial shortfall, Council will be conducting a member referendum on an increase in both working and basic dues this coming February. Some history on Equity’s dues Dues were last adjusted in 1999, when basic $170 dues went from $50 per year to $135 per Basic Dues Compared with Costs Over Time year. Equity has successfully operated on a 160 breakeven basis since then. Until recently, that is. Nothing catastrophic Costs 150 occurred; it’s just that inflation eventually Dues caught up with us. Paying for 2013 expenses with a 1999 dues rate is no longer possible, 140 and we have experienced growing deficits for the past two years. 130 The dues proposal Council proposes to increase basic dues to 120 $180, coupled with an increase in working 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 dues to 2.25%. These rates will then hold steady for at least six years. Where does the money go? We went with a combined basic and working dues format based on All the operational costs of Equity are paid for by its members. Dues member feedback, which suggested that a modest increase to basic cover several rounds of negotiation and ratification each year, review dues, coupled with a small increase to working dues, would be an and data entry of all engagement contracts, advocacy, administration appropriately balanced approach. of the insurance and RRSP plans, all communications to the members, At Council’s request, staff prepared five different options for a dues membership meetings, all other programs and services, the gover- adjustment. All were designed to address past and future inflation, with nance of the association, general administration of the association allowances for new initiatives, and the ability to pay back accumulated (website, membership, accounting, etc.), and all the office overhead. deficits. As might be expected, the vast majority of expenses are labour- The final decision on rates was made by Council at our June 2013 related – Equity is a service organization, so the largest cost is that of meeting. We used real time financial projections to adjust the rates to the people necessary to provide the services. Compared with similar what Council believed the members would regard as fair, appropriate associations, our staff complement is proportionally quite small, and and bearable across the whole range of member incomes. almost all of our “departments” consist of a single person. So, what will the proposed Members wishing to see a more change in dues look like on your detailed overview of Equity’s finances paycheque? For all members, the can find it online at www.caea.com semi-annual dues billing will go up Council proposes to increase basic in our News section, along with the to $90 or an increase of $3.75 per other National AGM reports. month. On the working dues side, a dues to $180, coupled with an member in the middle of our income Has Equity looked at other range, earning about $15,000 per increase in working dues to 2.25%. revenue options? year, would see working dues go up Members frequently ask if Equity by $37.50 for the whole year. These rates will then hold steady for can’t get some kind of operating grant like theatres do. Not really. Have contractual fees kept at least six years. The only subsidies available to arts up with inflation? organizations such as ours are short- Yes, they have. Take a look at scale term new initiatives grants. However, for an actor working in a CTA/ITA category C house, which is typical starting something we have no money to maintain doesn’t make finan- of numbers across the board. In 1999, the scale for a C house actor cial sense. There is also no special allotment of funds for professional was $623.18 per week; today it is $912.26 per week. Adjusting for the associations, and Equity long ago decided not to compete with our fee structure change in 2003, members have received an increase in own members for grant money. the minimum fees of around 36%, which is actually a bit higher than While dues cover the lion’s share of expenses, there are a few, smaller the inflation rate for the same period. revenue sources as well, and we have looked at them all. Of these, there are almost none that can be changed to a degree that would make • using an automated attendant phone system, instead of a receptionist any meaningful difference in the overall revenue picture. Council will, • lengthening standard wait times for staff response however, be implementing a new administration fee for arrears that we • discontinuing printed hardcopy scale agreements, except by request need to collect through engagers, and increasing reinstatement fees for and charged at cost recovery members who have had their membership suspended. • increasing the late dues payment penalty On the flip side, what can the members expect if Since 1999, members have received the dues increase passes? First, Equity would pay off accumulated debt from the recent deficits. an increase in the minimum fees Second, we would almost certainly hire another, desperately needed, staff person to help us work on new initiatives such as: of around 36%, which is actually • improvement in the website • an online directory to help engagers contact members a bit higher than the inflation rate • an “availability” list for members • online filing of contracts and other engagement documents for the same period. • restoration of Council meetings in locations other than Toronto • restoration of professional development cuts • projects to address issues of diversity, harassment and audition What about the expense side of the ledger? access The basic dues amount that used to purchase $135 of business ser- All of these ideas, and many more, have been sitting on the shelf vices, supplies and manpower in 1999, now only purchases (compara- for lack of staff to implement them, and money to run them. Better tively) $90 worth. We have steadily pruned expenses wherever possible resources would mean that we could get to work on them. to keep pace with this reduction in purchasing power. In the past three Currently, our staff is working at capacity and beyond. At the best years alone we have: of times we have precisely enough people to keep the organization • elected to not replace one senior staff member who left, despite the running day-to-day. However, if someone is on vacation or ill, that fact that we desperately needed someone at that level typically means a whole “department” is shut down for a day or more, • cut an additional part-time position and it takes that much longer to get you the answer or help you need. • cut EQ magazine from four to three issues per year Having the ability to hire additional staff would also help us to generally • discontinued our one Council meeting per year held outside Toronto improve service to the members. • cut staff travel to the various regions • cut the professional development subsidy by 75% When is the referendum, and who gets to vote? • changed the honours ceremony to be held biennially, and combined The timeline and other details about the referendum are listed on the it with the national AGM to save costs back page of this special supplement. All life members and regular • changed how Council apportions resources to committees and members in good standing are eligible to vote, and voter kits will be advisories going out early in the new year. On top of that, Council recently approved another $35,000 in savings, including potentially discontinuing all remaining professional development subsidies and the honours program. Members wishing to see What will happen if the dues increase does not pass? a more detailed overview of Equity’s We have reached the point where paring costs no longer does the trick – Council and staff would need to make substantial changes to finances can find it online at services and benefits to bring expenses in line with revenue. The following list of options has been raised for future consideration. www.caea.com, linked from the At this point, none have been fully reviewed or approved by Council, but all are potential outcomes. Dues Referendum info page. • closure of the western office • moving EQ to an electronic-only format • discontinuing e-drive How can members can ask questions or get more • discontinuing support of regional theatre awards information? • discontinuing support for PAL and the Actors’ Fund We will be holding a series of member meetings across the country in • no member assistance or advice for engagements under reciprocal January and early February. The Toronto meeting will also be webcast, agreements with AEA, ACTRA or UDA so that members across the country will have an additional opportu- • reducing/eliminating contract review nity to attend. As well, members can contact the Dues Referendum • having minimal engagement follow-up prior to releasing security; Committee any time through either office, or at duesreferendum@caea. members would need to personally identify any outstanding pay- com. We want you to be able to make an informed decision, so please ment or other issues get in touch.

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