Labour Practices in TV and Film making : A report under section 79 of the Fair Trading Act 1973

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Summary

In this reference, the first under section 79 of the Fair Trading Act 1973 (the
Act), we were required to consider the possible existence and effects of two
practices (referred to in the report as reference practices):

(a) the practice of restricting the extent to which work is performed by workers
who are not members of a particular trade union (referred to as Practice A);
and

(b) the requirement that minimum numbers of workers (whether or not of
specified descriptions) be engaged on particular productions or tasks
(referred to in the report as Practice B),

in the making or provision of programmes or advertisements for television, or in
the making of films or advertisements for exhibition in cinemas. Restrictions
relating exclusively to rates of remuneration were outside our terms of reference.

Fundamental changes are taking place in the industry at present both in
general and in its employment and working practices. Factors causing these
changes include rapid technical advances, increased competition and changes in
employment law. The introduction of satellite and cable TV, and the Government
policy that independent producers should have access to a larger share of
broadcast output, have increased and will in future increase competition. These
changes in employment and working practices were very evident during the course
of our inquiry, so much so that we were conscious, as was put to us, that we were
' shooting at a moving target'.

The industry we cover consists of the BBC and the independent television
companies, and the independent producers of programmes, films and
commercials. There are eight unions in the industry: Association of
Cinematograph, Television and allied Technicians (ACTT), Broadcasting and
Entertainment Trades Alliance (BETA), Electrical Electronic Telecommunication
& Plumbing Union (EETPU), National Union of Journalists (NUJ), British
Actors Equity Association (EQUITY), the Musicians' Union (MU), the Film
Artistes' Association (FAA) and the Writers' Guild of Great Britain (WG).

In areas of work involving the ACTT, BETA and EETPU, we found either
that reference practices did not exist at 31 December 1988, or in a few cases that
reference practices might still have existed at that date but could realistically be
expected to disappear as a result of current or intended negotiations, or
management decisions.

In areas of work involving EQUITY we found that Practice A existed and
was a ' restrictive labour practice'. These words have a specific meaning in the
context of section 79 of the Act (see Appendix 2.2). Having considered the public
interest carefully we concluded that on balance the practice did not operate against
the public interest.

In areas of work involving the Musicians' Union we found that Practice A
and Practice B existed and that each was a ' restrictive labour practice' within the
meaning of the Act. Again we concluded that on balance the practices did not
operate against the public interest.

We did not find that any reference practices existed in areas of work
involving the Film Artistes' Association, the National Union of Journalists or the
Writers' Guild.

As the inquiry developed it became clear that, so far as their dealings with
EQUITY and the Musicians' Union were concerned, there was one matter which
in the mind of the employers eclipsed all others: the problem of repeat fees and
consents. This problem arises from agreements restricting the use of programmes
involving members of the two unions, either as repeats in the United Kingdom or
when sold overseas or in new markets such as satellite TV. Negotiations are said to
be difficult and fees for repeats and sales too high. In addition there are difficulties
attributed to the Performers' Protection Acts. This matter falls outside our terms
of reference and so we have not dealt with it. Some negotiations have begun with
the unions with a view to resolving the matter. Failing resolution, it could well
merit separate investigation.

Our conclusions concerning the public interest have been reached against
the background of the fundamental changes in the industry referred to above.
These changes reflect an increasingly competitive environment, to which
employers and unions alike have committed themselves to respond flexibly.

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