Pros and Cons: Should You Hire Union or Non-Union for Your Next Commercial?

Choosing between union and non-union workers for your upcoming production may initially seem like a simple budgetary decision: if you have the resources, should you invest in union talent?

However, the dilemma extends far beyond just financial considerations. This decision involves weighing a complex array of pros and cons that can significantly influence the success and smooth operation of your project. From ensuring compliance with labor standards to balancing cost efficiencies, every aspect demands careful thought.

Below, we’’ll delves into the intricate benefits and challenges associated with hiring both union and non-union workers for commercials. We will explore what producers need to consider—from legal obligations and cost implications to the expected level of professionalism and project requirements—providing you with a comprehensive framework to make an informed decision that aligns with your production goals and resources.

Understanding Union Workers

Entertainment labor unions are essential in protecting the rights for talent and crew members when working on productions. From negotiating talent contracts to ensuring minimum salaries and health benefits, the entertainment unions strive to maintain a fair working environment for their members.

Different entertainment unions represent different types of workers within your production. Here is an overview of the most common labor unions advertisers and producers will most likely engage with when working with union workers.

1. SAG-AFTRA

   The Screen Actors Guild–American Federation of Television and Radio Artists (SAG-AFTRA) is a noteworthy labor union that stands as a guardian of the rights of a diverse array of individuals within the entertainment industry. Its representation spans an extensive spectrum, that includes commercials, educational / industrial film & TV, New Media, video games, providing wage protection, residuals, safe working conditions for all types of actors including celebrities, stand-ins, stunt performers, hand models, TV and radio hosts and more who contribute to their talents to bring filmed entertainment to life.

2. I.A.T.S.E.

   The International Alliance of Theatrical Stage Employees (I.A.T.S.E.) is a comprehensive organization that champions the interests and well-being of workers across a spectrum of art forms, media outlets, and entertainment crafts. Its primary mission is to advocate for the rights and safety of those engaged in various productions, ensuring a conducive and protected work environment for all its members.

   IATSE covers crew members in the entertainment industry including:

   • Technicians

   • Electricians

   • Warehouse workers

   • Cinematographers

   • Film editors

   • Costume / wardrobe stylists

   • Make up artists and hairstylists 

   • Art directors

   • Sound

   • Production Design 

   • Coordinators (lighting, set, special effects)

   They are composed of more than 360 local unions organized by geographic region where they negotiate labor contracts in regards to wages, working rules and grievance procedures. 

3. Teamsters

   Teamsters represent the working crew of the entertainment industry. This includes drivers, body doubles, warehouse workers, animal trainers and other top workers you might need for your upcoming production. 

4. AFM

   American Federation Musicians - Local 47 is a labor union that promotes and protects all professional musicians in the entertainment industry. With over 5,000 members, they advocate to composers, contractors, producers and freelance musicians.

5. DGA

   Directors Guild of America is an entertainment guild that represents film directors in the United States. With over 18,000 members, their mission is to safeguard their rights and ensure fair treatment during production.

Pros of Hiring Union Workers for Your Commercial 

Working with union workers in film production can offer several advantages to your production for a successful film. Here are some benefits to consider:

1. Guaranteed wages and working conditions

   Awards in the advertising and entertainment worlds can focus on various aspects of the project so it becomes important to do your research for awards that are relevant to your film’s genre, theme and production scale.

2. Improved productivity and quality

   When collaborating with union members, you have access to a skilled and experienced workforce that brings higher production value to your project.

3. Talent attraction and retention

   Working with union talent gives you access to better trained and more experienced higher quality actors. 

4. Efficiency and productivity

   Working with unions ensures that workers adhere to agreed upon schedules that minimizes disruptions during production. Union workers are also required to have a set level of experience and training leads to increased efficiency and productivity on set.

Cons of Hiring Union Workers

Hiring union talent for commercials, while offering numerous benefits like experienced professionals and standardized working conditions, does come with some challenges:

1. Cost

   Union productions typically have higher costs associated with them due to union-negotiated wage scales, benefits, and overtime rules. This can significantly increase the budget for a commercial, especially for smaller companies or projects with limited financial resources.

2. Requires being a signatory

   To hire union talent, a production company must become a signatory to the union, which involves agreeing to abide by the union's collective bargaining agreements. This requirement can be a significant hurdle for new or smaller production companies, as it commits them to the union's rules and regulations, which might not be ideal for every project or business model. Becoming a signatory often entails a formal application process, adherence to union standards, and ongoing commitments that might extend beyond the scope of a single project.

   
   Luckily, if you aren't a signatory and don’t want to become one, there are third-party entities that can serve as a signatory on your behalf.

3. Union regulations and restrictions

   Unions have specific rules and regulations that productions must follow. These include regulations on working hours, mandatory breaks, and specific conditions under which work must be performed. While these rules protect workers, they can also limit the flexibility that a production might need.

4. Hiring processes

   Working with unions often involves more complex hiring locals. This can include dealing with union halls, following specific casting procedures, and sometimes being required to hire from a pool of union members before considering non-union crew and talent.

5. Fees and paperwork

   There are additional administrative responsibilities such as contributions to health and pension funds, and dealing with more extensive paperwork and contract requirements. This can be burdensome, especially for productions not regularly working with union talent.

6. Dispute resolutions

   While unions provide mechanisms for dispute resolution, these processes can be more formal and time-consuming than resolving issues directly with non-union workers. This could lead to delays and additional costs if disputes arise during production.

7. Limited flexibility in negotiation

   Union contracts standardize many aspects of employment, which reduces the room for negotiating terms that might be specifically desirable for a particular production or in response to unexpected changes in production needs.

8. Penalties and strikes

   Non-compliance with union rules can result in penalties or legal challenges. Additionally, the risk of strikes or work stoppages can be a significant concern, potentially delaying projects and increasing costs.

Exploring Non-Union Workers

In commercial productions, non-union workers are those who are not members of any labor union, such as SAG-AFTRA, IATSE, Teamsters, WGA, or AFM, which typically represent various groups of professionals in the entertainment industry. Non-union workers may include actors, technicians, and other production staff who have not joined a union or are working on projects that do not require union affiliation.

Pros of Hiring Non-Union for Your Commercial

What sets non-union workers apart from union workers comes down to the cost. When hiring non-union, you  usually pay less for cast and crew compared to union workers as they are excluded from several benefits such as:

1. Residuals and pension & health

   When working with union talent, producers are required to pay additional fees such as residuals, pension and health on top of their daily wages. Therefore, hiring non-union talent for your upcoming commercial can be a more cost-effective option. 

2. Fair working environments

   Under union labor contracts, producers must adhere to strict safety guidelines during production to avoid penalty fees. Hiring non union workers does not require producers to enforce such stringent measures, potentially reducing costs in the long run.

Cons of Hiring Non Union Workers

It is a well-known fact that working with non-unionized laborers may result in cost savings for your production. However, the decision to work with non-unionized workers can lead to risks  that may ultimately increase production costs. This is primarily due to the potential challenges and complications that may arise when working with non-unionized labor, such as:

1. Flipped jobs

   Flipped jobs occur when you hire workers as non-union but they are in fact a part of a union and your production must now go union to avoid shutting down production. It causes added costs such as benefits, residuals, and added penalty fees.

2. Lack of skills and experience

   Non union workers vary widely in their level of skills and experience that can impact the quality of your production and film project.

3. Industry relationships

   Working with non union workers can strain relationships with powerful film unions in the industry making it hard to work with them in the future. There is a general perception among the entertainment industry that films that have worked with union workers bring a higher level of professionalism and quality compared to films that ran non union workers.

Key Considerations When Choosing Between Union and Non-Union Workers

Determining the right call whether to work with union workers will depend on various factors, especially your production’s budget and needs. The truth is not every production can afford the costs associated with union workers while also covering other essential expenses needed for your production. Here are some key considerations to take in mind when choosing between going union or non union:

1. Budget constraints

   When analyzing your production budget, assess whether your budget can accommodate the higher wages, benefits and additional costs involved with union workers. It’s critical that you have a streamlined cash flow management system for your commercial production before considering the hire of union talent– otherwise you could be looking at some serious consequences.

2. Legal and contractual obligations

   Union contracts instruct clear guidelines on wages, working hours and other important working conditions. You must assess if your production will be able to remain compliant with union rules and regulations to avoid added penalty fees.

3. Desired level of professionalism and expertise

   If your productions demand top-tier expertise and consistent quality work, union labor is the best option to consider. 

4. Back office administrative capacity

   While it isn’t the most exciting part of your commercial production, the back-office support can make or break your success. If you don’t have the internal infrastructure to navigate union contracts, negotiate them, and turn around payroll within contract deadlines, you should either consider hiring non-union or look for outsourced back-office support that can help you scale as projects come in.

Conclusion: Hire Union Workers with Ease

Choosing between union and non union workers is a crucial decision that can significantly impact your films quality and overall success. By carefully evaluating your productions goals and resources, you can make an informed decision that aligns with your production. 

Decided to go union? 
CMS Productions is a third party union signatory to SAG-AFTRA (Commercials, Educational / Industrial & Interactive), IATSE, Teamsters and AFM, we’re happy to assist with helping you hire the best union team for your upcoming production. Contact us today to set up a consultation.