Visual Effects Trade Association

At SIGGRAPH John Textor announced he was giving Scott Ross $100,000 to help start a visual effects trade association.

This is probably a good thing.

What is a trade association?
It's a group of companies in a specific industry that organize together to achieve common  goals. The MPAA  is a trade association of motion picture studios that negotiates as a group with the guilds and unions of hollywood. They standardize and provide film ratings. They are also involved in anti-piracy protection.

There's trade associations in quite a few industries. International Dairy Foods Association  covers the nation and Dairy Institute of California is made up of dairy farmers in California.  Because they cover a specific area they then lobby the state or federal government for or  against specific bills that would affect them. Some trade organizations do group advertising as well or set standards for their industry.

TechAmerica is made up of  high tech companies.
Wiki coverage of trade associations 

As you can see these groups are able to leverage their strength in numbers to their advantage. In many ways a trade associate is like a union or guild for companies. The companies pay dues and they are working as an organized group.

Scott Ross originally estimated the association would require $3 million a year to operate. He's since cut that figure in half so the $100,000 he is receiving is seed money. And the company dues will be significant compared to a few hundred dollars most guilds charge their workers. Dues in the trade association could dwarf the cost of a company unionizing.

What could the trade association do?
They could agree on standards and practices such as visual effects bidding forms or even things like model interchange formats. The Association of Independent Commercial producers (AICP)  has standardized bidding forms and bidding processes among other things. Although my understanding now is that this may not have truly benefited the producers in the long run.

They could agree to working conditions for their workers. They could use their strength in numbers to make deals with software or hardware vendors. They could review basic business models and work as an organization with the studios to negotiate common issues.

If there were a visual effects union the trade association could be the ones to negotiate with the union compared to each each company having to do it individually.

What they have to be very careful of
Collusion. This is where companies get together to decide on financial or hiring practices that are illegal. ILM and Pixar colluded to not hire each others animators. That was illegal as per the justice department. They won't be able to set rates or agree to match pricing. Because it's planned as an international association it will have to abide by laws that affect all nations.

What it can't do
The association is currently planned as an international group. You'll notice most trade associations are region based where they can lobby for specific things. With an international group they won't be able to lobby any specific government because that would be detrimental to other members of the association. So that means things like visual effects tax incentives will likely not be addressed or dealt with.

Companies
There will also be a question as to how many companies and what size of companies signup. So far visual effects companies have been reluctant to start a trade association on their own. Will they be willing to join one if someone else starts it? Will it provide a balance for very small companies and the largest visual effects companies? In some ways it can help provide the smaller companies with more leverage but only if that's the leverage the smaller company wants. Will companies who aren't members benefit from the improvements the association makes? Will studios seek out associate member companies or avoid them? Will the the studios take umbrage with companies looking to join the association as some companies do to workers who are looking to join a guild? That all depends on the associations agreed upon agenda. It's also very dependent on which companies and how many are in the association. If all the largest companies are members then there may not be much option for the clients.

Time
It will be interesting to see how long it takes to build a trade association and come to agreement on key issues. This is likely to be a very time consuming process (at least a year or more).

Comparison
As mentioned a trade association in some ways is like a union or guild for the companies. By organizing together they provide a strength in numbers and solidarity that independent companies don't have. Same thing applies to unions and guilds. They provide a strength in numbers and solidarity to individual workers that they don't have by themselves.

The distinction is a trade organization has  different goals than a guild. The trade organization's goal would be actions that are  beneficial to the companies. A guild's goal is actions beneficial to the workers. More profitable and balanced companies would be good for the visual effects industry as a whole but doesn't necessarily result in benefits for the workers. The trickle down effect does not work. A more profitable company will tend to pass the additional profits on to investors, executive management and possible long term investments. None of this may address hiring and layoff practices and it's unlikely to provide things like continuous health care or limited overtime.

In fact a trade association could make decisions on practices that are detrimental to visual effects artists. (Amount of overtime, overtime pay, employment agreements, etc) Only time will tell how this plays out. If that's the case then individuals who quit specific companies because of certain practices may find that most other companies are now doing the same thing. Individuals have very little power when dealing with a single company and will have much less with an organized group of companies. A trade association may be even more of a reason to look at a guild as a way to keep some balance.

Summary
A visual effects trade association could be a good thing for the visual effects industry if it actually materializes and takes the necessary steps. It won't deal with tax incentives and some of the other ills of the industry. It doesn't  and shouldn't preclude a guild for visual effects artists.

[Update: DD closed operations in Florida and the company has been sold. The $100,000 being offered to help start the Trade Association didn't happen. Scott Ross had obtained a number of yeses and at least a couple of Nos. Not sure how likely it will proceed at this point.]

VES and VFX trade organization

There's a LinkedIn discussion going on regarding Vfx trade organizations and the Vfx foundation.

LinkedIn discussion

This also includes some potshots at the VES. I wrote up a response but thought it best to post here as a reference.


I'm on the board of the VES but I don't speak for the Ves so these are simply my personal views. Bob and Colin have brought up some points but I'd like to clarify a few things.

I don't see what's to be gained by bashing the VES. The Ves was formed 15 years ago to be an honorary society, similar in many ways to the ASC and the Academy of Motion Pictures. To honor professionals, to provide education and to advance the art of visual effects where possible with standards and research. And to that end, it's accomplished that. Educational programs are frequently held around the world. A couple of weeks ago there was an event covering the latest on performance capture. Many of these event videos are online at the website (upgrades in progress) The Ves created the Ves handbook and is looking to do more in this area in the future.

I pay dues to the Ves because I do this for a living. I'm a professional and the Ves is the largest group of visual effects professionals. Just as I buy books and magazines and pay to attend events related to my professional. It's a business expense.

I don't begrudge paying dues to the Academy and wouldn't begrudge paying into the ASC if I was a member. If you don't want to join the Ves then don't. If you're a Ves member and wish to see improvements then join a committee. Most of the Ves is volunteer based and that's how the Ves handbook came to be.

There are those that want the Ves to be a trade organization or a union. But that ship sailed when the Ves was founded. It may sound like an easy thing to change the structure and intent of the Ves (or other existing non profit) but it is not. To totally switch to a different type of organization would likely require dissolving the Ves and creating a totally new and different organization. The current members wouldn't be members under a trade organization and the same might apply as a union. The US government treats unions differently than standard non-union groups regarding legal issues. The same likely applies to a trade organization. There are also tax issues that would change. If a cinematographer has an issue getting paid he/she doesn't go to the ASC and tell them to change their entire focus and structure to accommodate the cinematographers needs. If a studio has an issue they don't go to the Academy and demand they become something totally different because the studio has a new need.

The Ves has tried a few times to get companies together to discuss a trade organization but many visual effects companies are very competitive and fiercely independent and didn't want to even consider such a thing. The Ves has also been in talks with the union.
Since none of these things happened (as of yet) the Ves decided to do what it could do to fill some of these gaps and still be true to the type of organization it is. The Ves is proceeding with doing what it can. Is there still room for a trade group or union? Yes, but at this point those aren't formed. So once again, what's the point of bashing the Ves?

Scott Ross has his work cut out for him to try to come up with a plan and sell it to all the major companies. Just as the union has to create a plan and sell to workers.

Trade organizations are typically made up of similar companies with similar needs. They don't tend to be made up of individuals. A Vfx trade organization would likely be based to some extend on the AICP and be about trying to standardize the billing and client relationship part of business. That's a different need than most workers.

Outsourcing
Here in the US we've been hurting because of the amount of tax incentives and outsourcing going on elsewhere. Some of the thinking is that the trade org or the foundation would be able to solve this problem. However both the proposed trade org and vfxfoundation are international, same as the Ves. You'll notice most unions and trade groups are regional (state, country, etc) Part of the reason for that is so they are all on the same page and can advocate their government to do things that would benefit them. (It's also cleaner from a legal perspective as well.) Being international means you can't hurt one subgroup while aiding another. I don't think London Vfx companies would be thrilled about the trade group they pay money into using that money to lobby California for more tax incentives. And we're now to the point many companies have satellite companies in other areas of the world and what were once local companies are now owned by large companies elsewhere. All of which makes it difficult to try to reduce or balance outsourcing.

Expenses
The trade group is budgeted at $3 million a year. That's a lot of money. Certainly more than the Ves. The foundation is at the other end of the spectrum. It doesn't plan to ever charge any membership fees. I've never belonged to any medium to large membership organization (professional or hobby) that didn't charge for membership. Sure, you can get a bunch of people together on the web without charging but much beyond that will require some funds at some point. Real expenses start happening when you're trying to service a number of people. Office supplies, web registration, web updates, legal fees, etc. Not everyone can volunteer full time for any length of time. Will job postings cover these costs? If you want sponsors then someone is going to have to spend time contacting companies and trying to make arrangements. One of the benefits of some type of paid membership is you separate the serious from those who aren't serious. Those who simply join everything on a lark.

Trade organization
One of the potential benefits if there was a trade organization it might it simpler for a worker group (union or other group) to negotiate. One group to deal with instead of dozens of smaller companies.

The downside is a trade organization could use it's strength in numbers to avoid any worker groups. One of the member companies could simply state that they were planning on cutting down certain worker benefits or thought certain types of jobs in Vfx were paid too much and they weren't going to be raising their rates for the next few years. There are legal issues with collusion but it can also be a gray area.
There are those that think if a trade organization benefits companies with more profits, that those profits will trickle down to the workers in benefits and pay. That's unlikely to happen. If companies make more profit then they will likely award their management and return more to their investors. They might put more money into equipment but they will still layoff people at the end of the project.

The hope is that if there is a trade organization it will create a stronger industry and if that trade organization is setup correctly more companies will be profitable and stable. And likewise it's possible it may raise the bar on bidding work and doing the work. All,of these do indirectly benefit the worker but it's important to not confuse the purpose and aim of a trade organization with a worker organization.

Ultimately it would be good for all of visual effects if in addition to the Ves there was a true trade organization and a workers group.

Global VFX Workers

Paddy Eason from the U.K asked in a previous posting about the possibility of a global union for vfx workers.

The following are some notes I wrote this last weekend.  Some this refers back to a previous posting I had made.  I’m just tossing out some possible ideas to get people thinking about options.

Unfortunately various government laws and varying health care options make having a traditional union be global a difficult proposition. IATSE (union of camera crews and most of the crafts people working in motion pictures) covers the US and has parallel labor agreements in Canada.  How far they can move beyond Canada would be worth a discussion with them.  (For those in LA there's a union picnic this Burbank on Sunday afternoon.  You can also contact them via email jgoodman@iatse-intl.com)

As a union employee if I go to another country and the company paying me is a union company, I would continue to work under those terms but that’s not the same as being a global union.

Before there was the real prospect of a true vfx union here in the U.S. I posted about establishing a Code of Standards for vfx companies.  Should the union efforts fail it might be worth considering.  And certainly may be worth considering in areas with a number of vfx or related companies that aren’t covered by a union.

The idea would be to have a group of vfx workers draft a list of working conditions requirements.  I would suggest using some of the existing union documents as a starting point.  Some of the possible issues could be: weekly payments (paid on time), if payment is not made worker has right to leave, clean work environment, safe work environment, ergonomical working setup, food break every 6 hours, 15 minute break every 4 hours, 12 hr minimum turnaround time (time you clock out until you’re required back at work), and might include such things as:  limit of x hrs in a day, limit of x hrs a week, limit of x days without a day off, double time after x hrs, double time starting on 6th day and beyond, etc.  Now the real unions do include some of these things such as food breaks, turnaround time, over time rates, etc but they don’t include any caps on amount of hours or days worked to my knowledge but I know that’s an issue with a lot of vfx workers who are tired of working 90-120 hr weeks.

So the issue would be for a group to come up with reasonable guidelines for both workers and companies.  All of these things would need to be feasible throughout the world.  The idea is to set a minimum level working environment. I should point out most medium to large vfx shops already provide reasonable environments so that portion shouldn’t be an issue.

This document probably wouldn’t cover such things as actual minimum rates for different types of positions but they could if it was desired.  There is cost of living that already known and calculated for all major cities in the world.  When I worked in London I had a given per diem that would qualify under the US tax code.  This would mean it’s possible to say a roto person would be paid at least x % of the cost of living index in that city.  A Compositor would be paid a minimum of y %.  So if you worked in London and moved to New York or China you’d have some idea for what the minimum would be. Note that these are minimums, just like the union does.  You can certainly negotiate higher rates depending on your experience, skill, etc.

Once a guideline was drafted then the idea would be to discuss it with the different companies. Now many vfx do have reasonable working conditions so the biggest sticking points with them would be the caps on time worked or if the overtime was higher than they’re currently paying.  Of course those factors would also encourage them and the studios to do more planning and to avoid getting into situations that workers are squeezed.

This guideline may not touch on benefits or it’s possible that may only be in U.S. version.  Many US companies have some types of benefits so this would merely list the minimum benefits in order to get the seal of approval as it were.

So what would be in it for the vfx companies?
Assuming the guidelines are not unreasonable most companies probably qualify now.  (With exceptions of caps as noted) If a company signs then they are listed on the group website with the seal of approval of the vfx workers.  Now when vfx workers finish up a project or are considering working elsewhere the seal of approval would be part of their decision process of where they’d want to work.  If all other things were equal most would tend to opt to go to a company that was willing to commit to signing the guidelines. Because you’d know if the company was unwilling to signup then it’s likely not up to the same working standards or that it could easily drop those working standards when they choose.  Key info about the company could also be posted such as benefits packages, etc.  Signed companies could possibly run job postings on the site.

Studios would also be aware which companies provided reasonable working conditions.  Now that might not have much influence but again if all things were equal the studio would know the company is serious about getting the best workers and less likely to cause a problem.  It would also help separate the fly by night companies from the companies who are in it for real.  This last part would depend on what requirements and vetting would be required. The hope would be if both workers and studios leaned toward companies with the seal of approval, more companies would be interested in signing and maintaining those working conditions.

I’ve thought of these as largely non-legal and non-binding documents.  It could go the other way and these could be made to have more teeth but just getting the thing rolling would be the biggest step.  With today’s communication it would be then easy to monitor the companies.  Any verified infractions of the guidelines would be listed on the web page so if a company didn’t live up to the guidelines that would be noted (possibly with worker ratings) and if it was bad enough then they’d be removed.

Let’s suppose a company doesn’t pay their workers on a given week.  The workers would contact the global vfx group handling all of this. They contact the vfx company and suggests the workers should be paid in 24 hrs.  If that doesn’t happen the workers can quit, the group tweets and a big red x is put over the company name on the website (so workers now avoid that place like the plague) and the group sends a note to Variety and related outlets that this specific vfx company didn’t pay their workers this last week even though they’re working on such and such movie or tv show.  Imagine a director, producer or studio with current work at this company or those considering bringing a project to this company.  I suspect there would be a few phone calls happening with the owner’s of the vfx company.  As I covered in another post, don’t be taken advantage of. Act as a group if there is a major problem at the company you work for.  It’s the only way to have some control over the situation.  Quit if you’re not paid.

So the good news you could conceivably have some type of consistent seal of approval and at least have some minimum working conditions.  Now most of this is similar to a union but a union is already setup for this type of thing and they have true contracts with the companies. In most areas of the US if the majority of a workers at a company want to unionize they can do so.  At that point it’s not optional for the company. And a union is united with other unions so there’s even more strength in numbers. A union also provides transferable benefits between companies that this does not.

Trade organization
The other part of all of this is a potential trade organization. There have been a few meetings and what started as a US centric group has potentially expanded to more of a global organization.  I say potential since even though there have been some meetings there has been very little activity.

There are a number of trade organizations that cover a wide range of services and products all over the world.  They’re tailor fit for their common good.

A trade organization would help to standardize bidding (similar to AICP commercial bids) and other things.  As a group it could allow sub-groups to lobby for tax breaks or advertise as a group.  Companies couldn’t have collusion (setting the same bids) but I believe they could set a minimum (i.e. no less than the actual cost of the work).  This would prevent a race to the bottom.

Trade organizations tend to be thought of in a very stereotypical fashion, just as unions are.  There would be concern if each sub-group was lobbying that there would conflict between sub-groups.  Here’s the thing, you’re building a group from scratch so it can be what you want it to be.  (A vfx union from scratch could also has a certain amount of flexibility of structure)  Organize and cover the things that are similar. Build on that.  If there are non-overlapping areas or areas that are at odds, then that’s probably not covered by the group.

A trade organization could actually do many of the things listed above (Seal of Approval) and if they took it a step further it’s likely they could provide some mechanism for providing benefits that traveled at least for workers within that country to other companies in the trade organization.  The problem though is all power and control is in their hands and if they chose tomorrow to stop benefits there would be nothing to prevent them.  That’s why in many industries there is a worker’s group (or union) and the companies to balance the power just as some governments have multiple branches to allow a balance of power.