| The Casting Director War | |
| Last Edit: TheHarveyBoy 07:13 am EST 12/05/17 | |
| Posted by: TheHarveyBoy 07:11 am EST 12/05/17 | |
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| Yesterday I received this email from RWS Entertainment Group, the company that owns Binder Casting: "Dear Colleagues, I’d like to take a moment to let you know that Binder Casting is not requiring Producers to recognize or sign the Teamster agreement unless the League formally endorses it. Since RWS Entertainment Group acquired Binder Casting in 2016, we have proudly provided all employees with health insurance, 401k benefits and unlimited time off. All this, to create a workplace that values its employees and push forward a new generation of casting directors to become the premiere casting services provider in the industry. As such, RWS leadership have implemented restructuring and transition plans. A formal press announcement is coming soon, but as of today Joe Christopher—formerly of Richards/Climan—will be overseeing all operations of Binder Casting Inc while also heading up general management and commercial theatre ventures at RWS. We have also hired 4 new casting directors with more to come. I know that several readings, workshops, labs and productions are being held in limbo by the Teamster issue. If Binder Casting can be of service to you for any current and/or future projects, please do be in touch." Then, this morning I received this from the Broadway League: "Dear Member, I wanted to get to you personally to let you know that today in the U.S. District Court for the Southern District of New York, The Broadway League filed a formal legal complaint against a cartel of casting companies who are violating antitrust laws, jeopardizing Broadway shows, and harming actors, stagehands, musicians, and others who depend on the theater for their livelihood. The full legal complaint can be found at www.broadwayleague.com. We regret that we have had to file this lawsuit, but we simply have no choice. We have maintained a respectful dialogue with the defendants, and encouraged them to resolve their issues through the National Labor Relations Board. However, the defendants continuing illegal and anticompetitive cartel behavior is jeopardizing the survival of Broadway shows, and bringing real harm to others. We have no choice but to seek a legal remedy to the cartel’s illegal behavior. I wanted to send this note to you to provide you details on the lawsuit we have filed. Specifically, the complaint asserts that certain actions by the casting cartel represent clear violations of the Sherman Act, a law designed to help protect against anti-competitive behavior. According to the complaint, the casting cartel defendants have participated in a common scheme to create, enhance, aggregate or exploit their collective market power for casting services for Broadway productions. This scheme has included unlawful contracts, combinations and conspiracies in restraint of trade -- clear violations of Section 1 of the Sherman Act which was designed to protect against such specific behavior. These unlawful agreements by the cartel have included agreements among the defendants and their co-conspirators to (1) eliminate price competition among casting companies; (2) raise, fix or inflate the prices that casting companies charge for their services, including by imposing surcharges on top of any negotiated fees; (3) engage in a concerted refusal to deal, or group boycott, with any producer that did not agree to one or more demands collectively agreed-upon by the defendants; and (4) take such other steps as may be necessary to carry out the agreement. The casting companies control over 80% of all Broadway shows. In recent weeks, they have stepped up their demands. In their latest salvo, they now seek to inflate prices for their services by 29%, adding tens of thousands of dollars to the costs of developing a show. These unlawful agreements restrain trade, jeopardize the very viability of Broadway shows, and harm actors, stagehands, musicians producers and countless other innocent parties related to the theater by preventing price competition among defendant casting companies, increasing the price or cost of casting services, reducing the choice of casting companies that a producer may select, reducing the quality of services that are available for Broadway productions, and increasing the barriers to entry or expansion for actual or potential competitors in the casting services market. Again, we regret deeply that we have been forced to file this lawsuit. But we have no choice but to fight to protect those who depend on the theater for their livelihood. Should you have any questions at all please feel free to contact me directly. In addition to further assist understanding of the issues of the lawsuit, please see the questions and answers below. Why are you filing this complaint now? We have maintained a respectful dialogue with the defendants, and have encouraged them to resolve their legal status before the National Labor Relations Board. However, the defendants’ continuing illegal and anticompetitive cartel behavior is jeopardizing the survival of Broadway shows, and bringing real harm to the actors, musicians, stagehands and others who depend on the theater for their very livelihood. Most recently, in coordination with the Teamsters, the casting offices have engaged in a collective boycott of new work as a way to force through their demands. We have no choice but to seek a legal remedy to the cartel’s illegal behavior. What specifically are you alleging in the legal complaint? The 44-page complaint provides extensive detail on your question and I urge you to read it in its entirety. Specifically, the complaint asserts that specific actions by the casting cartel are clear violations of the Sherman Act, a law designed to help protect against anti-competitive behavior. According to the complaint, the casting cartel defendants have participated in a common scheme designed to create, enhance, aggregate or exploit their collecting market power for casting services for Broadway productions. This scheme has included unlawful contracts, combinations and conspiracies in restraint of trade -- clear violations of Section 1 of the Sherman Act which was designed to protect against such specific behavior. These unlawful agreements by the cartel have included agreements among the defendants and their co-conspirators to (1) eliminate price competition among casting companies; (2) raise, fix or inflate the prices that casting companies charge for their services, including by imposing surcharges on top of any negotiated fees; (3) engage in a concerted refusal to deal, or group boycott, with any producer that did not agree to one or more demands collectively agreed-upon by the defendants; and (4) take such other steps as may be necessary to carry out the agreement. These unlawful agreements restrain trade, jeopardize the very viability of Broadway shows, and harm actors, stagehands and countless other innocent parties related to the theater by preventing price competition among defendant casting companies, increasing the price or cost of casting services, reducing the choice of casting companies that a producer may select, reducing the quality of services that are available for Broadway productions, and increasing the barriers to entry or expansion for actual or potential competitors in the casting services market. What is this issue really all about? Casting director offices are seeking to band together – through the Teamsters Local 817 -- and negotiate as a union. However, casting directors are business owners who are retained by our shows as independent contractors; they are not employed by a specific Broadway show, and they do not – under U.S. law – have a right to be recognized as a union. The Broadway League believes that it would not be appropriate for it or its producing members to recognize a union as the bargaining representative of professionals who are not employees of their productions. Consistent with U.S. law, the Broadway League has encouraged the Teamsters Local 817 to take their case to the National Labor Relations Board (NLRB), and the Broadway League has made it clear that if the NLRB provides legal recognition then the Broadway League would be able – under U.S. law – to work with the Teamsters to resolve this issue. Aren’t the casting directors just seeking health and retirement benefits? The Broadway League believes in the importance of health care and retirement benefits. But that is not what this case is about. As we detail in our complaint, the actual employers are the casting companies themselves. Some of them provide benefits, some don’t. But that is an issue between the casting company employees and the casting companies. The dispute here concerns the negotiations over price between those casting companies and producers, not the individual casting company employees. The Teamster’s attempt to shift the focus away from that to feigned concern about health and retirement benefits is a sham. Indeed, none of the casting companies had ever even raised the issue with producers until the Teamsters decided they needed to cover up their unlawful activity. What damages or relief are you seeking to recover with the legal complaint? First, that the conduct by the cartel be declared unlawful under Section 1 of the Sherman Act. Second, that the court issue injunctive and equitable relief to help prevent and restrain the defendants from engaging in further or ongoing illegal conduct. Third, that the Broadway League be awarded costs of the lawsuit, including attorneys’ fees. And fourth, that the court order such other, further, and different relief as the case may require, or as may be determined to be just, equitable and proper." This should be interesting! |
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