Production Savings: IATSE Low Budget Theatrical Agreement
Most likely, if filming a feature film in the US you will need to contract with a IATSE union crew. If you have access to the Low Budget Theatrical Agreement, you will be able to realize significant cost savings.
Continue reading as we delve into the intricacies of the IATSE Low Budget Theatrical Agreement. We will detail all the qualifications your production must meet to qualify for this agreement, the fee structure, and the benefits it provides your productions. Further, we will explain how CMS Productions, as a third-party signatory, can assist you in accessing exclusive rates under the low budget theatrical agreement.
What is the IATSE Low Budget Theatrical Agreement?
The IATSE (International Alliance of Theatrical Stage Employees) Low Budget Theatrical Agreement is a specific contract designed by IATSE for productions that have a lower budget (under $15 million exclusive of insurance, financing, fringe benefits and distribution costs). This agreement is part of IATSE's effort to adapt to the diverse range of production budgets in the film and television industry, particularly catering to smaller, independent productions that might not have the financial resources of larger, mainstream productions.
The IATSE Low Budget Theatrical Agreement is designed to cover a range of productions that fall within certain budgetary constraints.
Independent films, which are produced outside of the major film studio system, often have lower budgets and are a primary category covered by this agreement.
Benefits of IATSE’s Low Budget Theatrical Agreement
The Low Budget Theatrical Agreement is significant because through its exclusive conditions, it allows smaller productions access to the professional skills of IATSE members while recognizing the financial constraints of these projects. This agreement has various benefits that can cut cost on your production such as:
Flexible budget tiers
The agreement defines what constitutes a "low budget" production, usually based on the total cost of the project. These thresholds can vary depending on whether you are working with a third-party signatory or the union directly. For example, CMS’s exclusive agreement under the IATSE Low Budget Theatrical Agreement offers more flexible budget tiers than what producers would receive signing directly with the union.
Here’s a side by side comparison:
| CMS Productions | IATSE | |
|---|---|---|
| Ultra Low | Up to $3 million | Not available |
| Tier 1A | $3 - $6.5 million | $1.85 - $5.5 million |
| Tier 1B | $6.25 - $9 million | Not available |
| Tier 2 | $9 - $12.5 million | $5.5 - $9 million |
| Tier 3 | $12.5 - $15 million | $9 - $12 million |
2. Reduced wage scales and modified working conditions
The agreement sets out reduced wage scales and modifies working conditions appropriate for lower-budget productions. The wage scales are negotiable for Ultra Low budget features and increase depending on the budget tier , all below regular “scale” wages”.
3. Health and pension contributions
It also outlines the contributions to health and pension funds for the employees, which are more favorable in comparison to standard agreements.
4. Flexible work rules
The agreement offers more flexibility in terms of work rules, such as working hours, turnaround times, and meal breaks.
IATSE Low Budget Theatrical Agreement FAQs
When it comes to navigating union contracts, it's easy to find yourself having more questions than answers. Having worked directly with IATSE for decades, CMS is proud to help you navigate the low budget theatrical agreement with ease. Here are some of the top questions our clients ask us:
How do I determine my total production budget?
Production costs under the low budget theatrical agreement refers to all production costs including pre-production, production and post production costs. For determining the correct tie, insurance, financing, pension & health contributions and other costs may be excluded from the budget.
What’s the geographical scope under the contract?
The Low Budget Theatrical Agreement is applicable to films where principal photography takes place in the United States. The agreement provides for different benefit calculations for features being shot in LA or New York.
What are the terms for vendor usage during post-Production and sound?
Under the agreement, there are specific terms for vendor usage for post-production and sound.
External Vendors, unless they are “union shops” are prohibited under this agreement. The applicable post production work must be performed by union members - primarily Local 700 - and be paid directly by the production. If post-production is being performed outside of the country the individuals performing the work must be paid by the production not through a vendor, however union scale rules and working conditions do not apply.
How do deposits and refunds work under the agreement?
For projects produced under the Low Budget Theatrical Agreement, an amount equal to the highest projected two weeks of IA payroll and fringe is required to be put on deposit with the entertainment payroll service being used to pay the crew. Deposits are fully refundable if all IA Locals indicate that there are no outstanding issues regarding payment of wages and P&H contributions.
In practice, the IA will authorize a portion of the deposit to be released after principal photography is completed and the remainder after post-production is completed. The IA will consult with all Locals before authorizing the release. As long as the rules have been followed, everyone paid, and the applicable P&H contributions made, the deposit will be fully released.
Benefits of Working with a Third-Party Signatory to the IATSE Low Budget Theatrical Agreement
Hiring a third-party signatory will lead to access and thus savings under the low budget theatrical agreement. Here’s a full list of perks that come with hiring an expert to help you navigate the contract:
Avoid becoming a union signatory
In order to hire a union crew, your production must be a signatory. This is not as simple as it sounds as your company will need a production history to qualify for the agreement. Most Low Budget productions are produced by a single purpose LLC owned by investors and not eligible.
Mitigate issues and avoid disputes
Take advantage of the stable relationships third party signatories like CMS have with the union. They are able to mitigate issues before they arise and talk directly with the union on your behalf as well.
Flexible budget tiers
Under CMS Production’s exclusive IATSE Low Budget Theatrical agreement, productions have access to higher budget tiers including an ultra low budget tier (negotiable wages) covering productions up to $3M.
Decrease fringe rates
When signing the Low Budget Theatrical agreement through CMS, you unlock reduced fringes on over-time, meal penalties and more.
String union relationships
Third parties have extensive relationships with union reps and can serve as your union liaison to mitigate any potential grievances to avoid added costs to your production and will help get your payroll deposit returned.
Conclusion: Save with CMS Productions’ IATSE Low Budget Theatrical Agreement
In conclusion, the Low Budget Theatrical Agreement has the opportunity for your production to save on overall production costs. Ensuring your production aligns with the terms and conditions of the agreement is essential to avoid added costs.
Signing through a third-party signatory like CMS Productions allows for more productions to qualify for more cost-effective tiers and qualify for lower rates.
Contact us today to see how we can service your next production with crew signatory support.