reel profits, real poverty

8/14/2019 Reel Profits, Real Poverty

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How Major HollywoodStudios Are Leaving Security

Ofcers Behind

How Major HollywoodStudios Are Leaving Security

Ofcers Behind

Reel Profts,Real Poverty


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Reel Profts, Real Poverty:How Major Hollywood Studios Are Leaving Securit y Ofcers Behind

EXECUTIVE SUMMARY

Hollywood studios are some o the largest users o private security in Los

Angeles, with hundreds o predominantly Arican American and Latino ofcersserving as the frst line o deense, protecting employees and property 24 hours

a day, seven days a week. Despite the high importance o security to the flm business,

Hollywood lags behind other industries in terms o security standards. The industrys

security provider o choice, Andrews International, is driving down standards by

creating poverty wage security jobs and through repeated alleged violations o wage-

and-hour and other employment laws. These destabilizing practices can promote high

turnover and unproessional standards.

Arican American and Latino security ofcers live in poverty. Earning just over $11

per hour, security ofcers at Hollywood studios live in poverty conditions and ace

violations o their legal rights. In Hollywood, as in the rest o Los Angeles, most security

ofcers are Arican American and Latino, and low wages contribute to racial inequalityin our city. In Los Angeles, rates o inequality are the highest or any o Caliornias

largest cities, with Arican American and Latino amilies making an income that is two-

thirds less than that o white households. Hollywoods choice or a security contractor,

Andrews International, is contributing to this inequality by paying low wages. With the

low income rom this company, Ive learned to live basically a poverty liestyle, says

John Macias, a security ofcer who has worked on the Sony lot or 12 years.

Low security standards put everyone at risk. Low security standards dont just hurt

ofcers. By contracting with a company that is driving down standards through low

wages and ongoing violations o wage laws and other workplace protections, studios

risk promoting high turnover that can endanger the saety o their employees and

the public. Additionally, some Andrews International ofcers, including ofcers atflm studios, have reported that they receive no relevant job training and lack the

equipment necessary to do their jobs.

While ofcers and their amilies live in poverty, Hollywood had a blockbuster year. In

the midst o one o the worst economic downturns in U.S. history, the flm industry

has had its most successul year ever, bringing in $10.7 billion surpassing the $10

billion mark or the frst time and shattering the previous years record by 10 percent.1

Hollywood also won big in government supports and tax breaks. In 2009, state and local

elected ofcials in Caliornia, in response to eorts o other states and municipalities

around the nation to attract flm production, passed multiple measures to promote

flm and television production. While these measures are intended to keep good jobs in

Los Angeles and Caliornia, minority security ofcers are being let out o Hollywoodssuccess story.

Hollywood can, and should, do better or all Hollywood workers and the city o Los

Angeles.Studios must take care that workers are not being let out o our citys

economic recovery. Improving the quality o security jobs will provide better saety to

the studios and the public, and Hollywood will become a better economic engine or

Los Angeles, beneftting thousands o working amilies and our communities.

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Reel Profts, Real Poverty:How Major Hollywood Studios Are Leaving Security Ofcers Behind

Hollywood Behind the Scenes: Minority SecurityOfcers Provide Valuable Services

Hollywood studios are some o the largest users o private security in Los

Angeles, with hundreds o predominantly Arican American and Latino ofcersserving as the frst line o deense at studios, protecting employees and property

24 hours a day, seven days a week. And with good reason: as an $80 billion industry

with many high-profle, culturally signifcant sites, the studios have much to protect.

Day-to-day concerns range rom protecting high profle stars and expensive equipment

to guarding against pirating and the thet o intellectual property valued in the millions.

In more extreme cases, flm studios have aced the threat o large-scale violence, as in

September 2001, when the Federal Bureau o Investigations (FBI) warned Hollywood

studios that it had received a threat o an attack against an unnamed flm studio in

response to planned military action in Aghanistan.2

While other industries are working with ofcers to ensure the highest quality security

and to bring quality jobs to Los Angeles, many Hollywood studios have hired AndrewsInternational, a security contractor with a record o breaking the law. Andrews is

driving down standards by creating poverty wage security jobs and through repeated

alleged violations o wage-and-hour and other employment laws. These destabilizing

practices can promote high turnover and unproessional standards. Additionally,

Andrews International ofcers, including those at flm studios, have reported they

receive no relevant hands-on training and lack the equipment necessary to do

their jobs.

Despite the high importance o security to the flm business, in many respects

Hollywood lags behind other industries in terms o security standards. In cities

around the country, responsible business leaders and security ofcers have been

working together to improve the quality o private security and ofcers workingconditions. Experts estimate the turnover rate in the security industry

between 100 percent and 300 percent a yearon par with the ast ood

industry, making it hard or ofcers to get the training, experience and

knowledge o buildings and tenants they need to advance proessionally.

To change this, responsible security clients and contractors have been

working with security ofcers and community leaders to improve

standards in the industry. Hollywood, however, has yet to step orward to

take part in this progress.

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Hollywood Prosperity or Most,But Not or All

For years, Hollywood has been an economic

driver and provider o high quality jobs orLos Angeles and Caliornia. Every midbudget

flm in Los Angeles creates more than 900 jobs,3

with the majority o these jobs ensuring high

standards or workers and the community. A

sel-described provider o middle-class jobs,4 the

entertainment industry contributes more than

$38 million a year5 to the Los Angeles economy.

Average wages in the flm industry ar surpass

those in the rest o Los Angeles, thanks in large

part to Hollywood unions which represent nearly

every person working at flm studios, romprojectionists, writers and make-up artists to big name Hollywood actors. For more

than 70 years, Hollywood guilds have stood up or justice in attaining high quality jobs

or those who work on and o the silver screen. Throughout the past decade, a number

o labor disputes seized the entertainment industry and brought pay raises, signifcant

compensation deals6 and various other fnancial gains7 or Hollywood workers. These

victories have helped Hollywood keep its reputation as a provider o quality jobs.

Arican American and Latino workers in Hollywood struggleto make ends meet

Despite these momentous victories or Hollywoods workorce, theres a largely AricanAmerican and Latino workorce at these studios that have historically been let out in

the cold. In many cases, service workersincluding the janitors and security ofcers

working every day and night at studioshave not been a part o Hollywoods history

o providing high-quality jobs. In contrast to other Hollywood workers, security ofcers

earn as little as $10 per hour. On top o that, ofcers get no sick days, orcing them to

choose between their health and a days pay.

This disparity in Hollywood is part o a larger problem o racial inequity in the city. One

study recently ound that Arican American and Latino amilies in Los Angeles have an

income two-thirds less than that o white households.8 The same study showed that

Los Angeles had the most income inequality o all o Caliornias largest cities and a

higher poverty level than Caliornia as a whole.9

Security ofcers are the remaining segment in Hollywood who work without a union

and, as a result, ace poverty wages and unair working conditions. These ofcers are

now organizing to win respect in the workplace, a living wage and decent healthcare,

just as makeup artists, actors and the rest o unionized Hollywood have beore them.

Here are some security ofcers sharing their stories on the struggle to gain respect in

Hollywood.

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Reel Profts, Real Poverty:How Major Hollywood Studios Are Leaving Security Ofcers Behind

For John Macias, a security ofcer on the Sony lot, poverty has sadly become

a way o lie. With the low income rom this company, Ive learned to livebasically a poverty liestyle, John says o his 12 years working or Andrews

International. Ater more than a decade working or Andrews, John still only

gets paid $11.72 per hour, bringing his yearly income to less than $25,000.

Johns economic hardships oten orce him to make difcult decisions, such as

choosing between having to pay or medication or having a decent meal.

At Sony, John isnt the only Andrews ofcer orced to make difcult decisions. Two

security ofcers, a mother and her daughter, got fred recently, John recalls. They

had lost their apartment and were living on the studio lot. They got fred when they got

caught. Despite providing valuable security services to a high-profle site such as Sony,

Johns economic struggle continues. I make barely enough to pay the bills, he says.

On top o the already meager wages that Andrews pays ofcers such as John, thecompany has a track record accusing them o stealing ofcers wagesworsening the

poverty these ofcers already ace. In 2005, John fled a suit alleging that Advanced

Tech Security Services, Andrews predecessor, not only required employees to regularly

work o the clock, but went so ar as to destroy time cards to avoid paying owed

wages. The company paid $815,000 to settle the suit, aecting 1,500 security ofcers

statewide. Yet across the country, the legal record and worker testimonies indicate

Andrews continues to steal workers wages.

Cynthia Rincn,a security ofcer who works on the Fox studio lot, is also

amiliar with Andrews low standards and illegal practices. Not only has

Cynthia been orced to live on Andrews low wages, but she has experienced

frsthand how the irresponsible contractor shortchanges ofcers by notproviding meal and rest breaks, which are required by state and ederal law.

Sometimes flming lasts 10 hours and we dont get breaks, says Cynthia, who

works two jobs to make ends meet. Cynthias partner, Rogelio Garcia, is an

ofcer at Fox who guards the studio gate. He recalls going through the same thing when

he worked on the production lot. I they elt like giving us a break, we were given a

break. We had no radios; we couldnt use our phones, so i I wanted to use the restroom

I had to wait or one o the supervisors to pass by.

Female security ofcers ace additional unair treatment based on their gender. They

asked me i I wanted to work where they were flming Avatar, Cynthia recalls, but the

branch manager said they didnt want any girls there. The discrimination doesnt go

unnoticed by other ofcers at Fox. Women earn less, Rogelio says. They are lessappreciated. Ive heard managers say stu like, Id rather a guy work than a girl.

Rogelio Garciahas been working as an Andrews security ofcer at Fox or two

years. Ater that much time on the job, Rogelio says hes never received any

hands-on training rom Andrews International and is not given the equipment

necessary to keep people sae.

When I started out, they tell you to just stand there, Rogelio says as to the

extent o the training he received rom Andrews. Andrews branch managers

tell Fox they dont have money to pay old guards to train new guards.

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Rogelio is aware that Andrews apathy toward training can aect his perormance on

the job. I wish there was hands-on training. Youre at a place where a lot o thingscould happen in a second. Just in the past two months, Ive had incidents where people

all on the stairs and Im just standing there. They told me not to touch anybody,

because I could get in trouble.

Because Rogelio didnt have a radio and wasnt allowed to use his cell phone, he had to

run to let someone know what had happened. I had to go back and just wait. I he had

gotten more injured, what was I supposed to do?

The stories o security ofcers in Hollywood stand in stark contrast to the world in

which they work. Ofcers are among the ew working in the flm industry orced to

choose between paying or medicine and putting ood on the table, and among the

ew who work without the protection o a union to ensure that their legal rights are

respected.

Now, security ofcers are ollowing in the ootsteps o other flm industry workers and

other security ofcers across the country, by organizing or better working conditions

and higher security standards or Los Angeles.

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The Union Difference: SEIU member Robert Branch

ROBERT BRANCHis familiar with the lack of respect that John, Cynthia and Rogelio have

experienced. In the past, you had no recourse, you were at the mercy of the employer,

Robert reects on his six and a half years working as a security ofcer. Two years ago,

Robert and thousands of other security ofcers in Los Angeles partnered with responsiblecontractors, community leaders and their union to form an alliance to raise standards for

tenants and security ofcers such as he. My co-workers and I have

more rights now. Were just in a better place; we dont have to

take the abuse.

Robert has experienced rsthand how the ght to gain respect

has made a difference at work. Sick days, for example, have

made a big difference in Roberts job. You basically worked

coughing on folks, passing germs. You went to work and were

miserable, but you knew if you stayed home, its zero money, so

I usually just sucked it up. Now youre able to take a day or two

and recuperate without losing wages.

Robert can relate to the struggle of security ofcers on

Hollywood lots. We are the rst responders, called on when

theres a crisis. Its just unconscionable to make millions

upon millions of dollars on a movie, and the security

ofcers that are on these sets to keep the

order and keep the peace get paid little to

nothing. What sense does that make?


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Reel Profts, Real Poverty:How Major Hollywood Studios Are Leaving Security Ofcers Behind6

III Hollywoods Blockbuster Year:Studios Can Aord to Do The Right Thing

While Hollywood security ofcers live in poverty and the United States aces

one o the worst economic downturns in its history, the flm industry has had

its most successul year ever. In 2009, Hollywood set a record or box ofce

sales, bringing in $10.7 billion domesticallythe industrys frst time surpassing the

$10 billion mark and shattering the previous years record by 10 percent. 10 Hollywood

ended the year with the largest single box ofce weekend ever, with box ofce receipts

in the United States and Canada reaching $278 million during the Christmas weekend.

It was also the frst time that three separate moviesFoxs AvatarandAlvin and theChipmunks 2, and Warner Brothers Sherlock Holmesgrossed $50 million each in the

same weekend. Summing up the year, Warner Brothers head o domestic distribution

Dan Fellman said, It couldnt get any better.11

Hollywood shows no sign o stopping. In 2009, there was an upsurge in production rom

the previous year, with flm and commercial production increasing 16 percent and 19

percent, respectively.12

While Hollywood has boomed in this recession, Arican American and Latino security

ofcers continue to ace extreme hardship. Conditions or Hollywood security ofcers

contribute to larger trends o racial inequality citywide. In Los Angeles, Arican

Americans have the lowest median household income o any racial group, bringing

in $31,905 annually, compared to the $53,978 or whites. 13 Latinos have a medianhousehold income that is 80 percent o the income or Los Angeles County as a whole,

as well as having the highest poverty rate (22 percent) among any other ethnic group. 14

This isnt the frst time Hollywood has excelled despite harsh economic conditions.

History has proven the flm industry to be recession-proo.15 During the Great

Depression, movie attendance shot up, with 4.6 billion movie tickets sold a year.16 The

National Association o Theatre Owners reports that box-ofce revenue has gone up

during fve o the seven recessions during the past 50 years.17

Film industry executives are well aware o the power o flm on movie-goers when times

are tough. As Fellman o Warner Brothers admits, When the economy gets a little bit

sluggish, our business seems to do well or even pick up.18

Fellmans observation has held true or his studio and others. Here are some o the

success stories o 2009:

n Warner Bros. was one o two studios to shatter previous worldwide box ofcerecords, with $4 billion in worldwide ticket sales. The previous annual recordwas $3.66 billion, set by Warner Brothers in 2007. Claiming the top spot at thedomestic box ofce or 12 weeks this year, the studios success was the resulto major releases, includingHarry Potter and the Half-Blood Prince, which took$929.4 million internationally.19

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n Fox was the other studio to crack the $4 billion mark, with at least $4.04

billion in worldwide ticket sales. This included a record-breaking (or anystudio) $2.45 billion overseas.20Avatar, which brought in more than $1 billionin the frst three weeks o its release, may become the No. 2 worldwidegrosser o all time, ater Titanic. Meanwhile, in late 2009, Fox televisionnetwork touted a 20 percent increase in ratings over the same period in2008.21

n Sony also enjoyed an extremely strong year, grossing $3.59 billionworldwide.22 The studio had eight No. 1 flms in 2009 and did especially wellin international markets.23 The studios two top pictures were the disaster flm2012, grossing $590.7 million internationally and $162.3 million domestically,andAngels and Demons, which grossed $352.6 million overseas and $133.4

million domestically.24

n Disney had a strong year, with $2.93 billion in worldwide grosses. CartoonUp was a critical and commercial hit, bringing in $293 million domesticallyand nearly $420 million overseas, where the flm is still in release. Disneyalso recently acquired another well-known brand in the amily entertainmentworld Marvel Entertainment Inc.and has high hopes or developing flmsunder that brand.25

Despite the depressed state o the economy, the public fnds a way to aord going

to the movies. The success o 2009 makes clear that Hollywood has the resources to

improve security standards or its employees and to create good jobs that will help

rebuild Caliornias economy.

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Reel Profts, Real Poverty:How Major Hollywood Studios Are Leaving Security Ofcers Behind8

IV Taxes Go to Hollywood: State and Local SubsidiesShould Beneft All

Along with Hollywoods numerous fnancial gains this year, the entertainment

industry has much to gain rom several public incentives meant to contribute toour economy and our communities. Caliornia elected ofcials, in response to

eorts o other states and municipalities around the nation to attract flm production,

recently passed necessary measures meant to keep good jobs in Los Angeles and

Caliornia.

In October 2009, Los Angeles City Council approved measures meant to keep flming

production in L.A. These measures would lower the costs o flming or studios through

a number o specifc measures, including:

n Encouraging property owners to provide ree or reduced-rate flming onprivate property;

n

Providing tax reunds or purchases made in Los Angeles during production;and

n Giving productions permission to park in city garages ater hours at nocharge.26

In addition, the City Council approved a plan to work closely with state lawmakers to

urther develop legislation meant to keep good jobs in Los Angeles. In January 2010, the

Council voted to study the creation o a municipal flm commission, which would be

charged with preventing the ight o production rom the city. 27

Studios are also receiving a helping hand rom Sacramento. In mid-2009, Gov. Arnold

Schwarzenegger signed into law the Caliornia Film and Television Incentive Program.

The program went into eect July 1 and has set aside $500 million in tax incentives or

ANDREWS INTERNATIONAL, HOLLYWOODS CONTRACTOR OF CHOICE, provides security or our o the Big Six flm

studios as well as a number o smaller studios and exemplifes the problems in the private security industry.

As one o the largest privately held security frms in the United States with hundreds o millions o dollars in annual

revenues, Andrews International has both the ability and the responsibility to provide proessional security services to its

clients and good jobs that can sustain amilies.

Instead, Andrews is helping drive a race to the bottom by creating poverty wage jobs. A review o public documents

related to Andrews International and its predecessor companies reveals a disturbing pattern o legal and ethical lapses and

concerns, including:

nRepeated, widespread and ongoing complaints o wage thet, including a recently launched investigation o Andrews by

the Massachusetts attorney general and our wage-and-hour suits, including two class actions, pending as o January

2010. Since 2005, Andrews has paid a cumulative $1.8 million to settle two class action lawsuits.

n Complaints o alleged sexual harassment and racial discrimination, including at least eight lawsuits against Andrews

and its predecessors since 2003. In seven o the eight cases, Andrews workers allege that reporting the discrimination

resulted in retaliation. Four harassment and discrimination actions are pending as o January 2010.

nA record o dishonesty with public sector clients, including an instance in New York City in which Andrews was ound to

have violated its contract with a public agency by ailing to provide site supervision as required by the contract.


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flm and television productions or the next fve years. 28 As o December 2009, at least

45 productions

had been approved to participate in the program,29

with 19 o thembeing produced or distributed by a major studio or television channel or a subsidiary

o one.30 I ought hard or economic stimulus measures, Schwarzenegger said,

including the flm and television production incentive; because we must do everything

in our power to stimulate the economy and put Caliornians back to work.31

State and city ofcials have pushed or these incentive measures to promote flm

production and, thus, create jobs in Caliornia. In return, the flm industry should

ensure that it is creating quality jobs in every aspect o its operation. Instead, turning a

blind eye to the state o security on its lots, the flm industry is returning the avor by

giving Caliornia poverty jobs that do nothing to strengthen our economy or improve

the lives o hardworking amilies.

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1 Cameron caps 2009, Variety, January 3, 2010.2 Studios react to terror threat, Los Angeles Daily News, September 21, 2001.3 Film Industry Profle o Caliornia/Los Angeles County, Los Angeles County Economic Development Corp. 2005.

4 Motion Picture Association o America. Pulled December 22, 2009. http://www.mpaa.org/researchStatistics.asp5 Roadmaps to Industry Clusters, 2004, Los Angeles County Economic Development Corp. 2004. http://www.laedc.

org/reports/roadmaps/Entertainment.pd6 Hollywood Writers Return to Work Ater Ending Strike, Bloomberg, February 13, 2008. http://www.bloomberg.com/

apps/news?pid=20601103&sid=aKdwR9oC54WM7 Los Angeles Times, Behind-the-Scenes Events Dictated Guild Settlement, May 7, 2001. James Bates; Claudia Eller.8 Poverty, Jobs and the Los Angeles Economy: An Annual Analysis o U.S. Census Data and the Challenges Facing

Our Region, Los Angeles Alliance or a New Economy. August 26, 2008. Pages 3 and 6. http://www.laane.org/downloads/PovertyJobs.pd

9 Poverty, Jobs and the Los Angeles Economy: An Annual Analysis o U.S. Census Data and the Challenges FacingOur Region, Los Angeles Alliance or a New Economy. August 26, 2008. Pages 3 and 6. http://www.laane.org/downloads/PovertyJobs.pd

10 Cameron caps 2009, Variety, January 3, 2010.11 Cameron caps 2009, Variety, January 3, 2010.12 Productions returning to Hollywood, The Los Angeles Independent, December 9, 2009. http://www.laindependent.

com/news/78926162.html.13 The State o Black Los Angeles, United Way o Greater Los Angeles, Los Angeles Urban League. July 2005 http://

www.unitedwayla.org/getinormed/rr/socialreports/Documents/SBLA_Continental_fnal_071305.pd Page 8.14 2006 Latino Scorecard: Road to Action, United Way o Greater Los Angeles. January 2006. 15 Sky isnt alling, Hollywood moguls maintain, Hollywood Reporter, September 18, 2008. http://www.reuters.com/

article/idUSN1832580220080918?eedType=RSS&eedName=entertainmentNews&pageNumber=1&virtualBrandChannel=0.

16 Recession Looms, Hollywood Booms, San Diego Union-Tribune, March 11, 2008. http://legacy.signonsandiego.com/uniontrib/20080311/news_1b11flm.html

17 Recession Looms, Hollywood Booms, San Diego Union-Tribune, March 11, 2008. http://legacy.signonsandiego.com/uniontrib/20080311/news_1b11flm.html

18 As Economy Dips, Hollywood Usually Booms, David Germain. Associated Press, March 10, 2008.19 Cameron caps 2009, Variety, January 3, 2010.20 Cameron caps 2009, Variety, January 3, 2010. Note: The Fox number includes $261 million in Fox Searchlight

grosses, o which at least $171.9 million represent grosses rom flms directly distributed by Searchlight. Thatputs big Foxs domestic tally at roughly $1.57 million. (Sony numbers do not include numbers rom Sony Pictures

Classics).21 A Fox sweeps surprise, Forbes, November 25, 2009. http://www.orbes.com/2009/11/25/ox-television-ratings-

business-entertainment-ox.html22 Cameron caps 2009, Variety, January 3, 2010.23 2009 Is Sony Pictures Entertainments Best Box Ofce Year Ever Worldwide as Sony Pictures Releasing International

Prepares to Pass $2 Billion Overseas, Sony Pictures Entertainment press release, December 3, 2009.24 Cameron caps 2009, Variety, January 3, 2010.25 Walt Disney Co. fscal ull year and Q4 conerence call transcript, Pages 6 & 7. http://corporate.disney.go.com/

investors/presentations/2009_11_12_q4-y09-earnings-transcript.pd26 City Council fle number 08-1783.

http://clkrep.lacity.org/onlinedocs/2008/08-1783_ca_10-07-09.pd27 L.A. Moves to Form Film Commission, The Los Angeles Independent, January 6, 2010.

http://www.laindependent.com/news/local/hollywood/80858877.html28 Bill to end runaway production does just what it is intended to do, Los Angeles Daily News, October 18, 2009.

http://www.dailynews.com/opinions/ci_1366236729 Assemblyman hails bill, Glendale News Press, October 29, 2009. http://www.glendalenewspress.com/

articles/2009/10/30/politics/gnp-pollandscape103009.txt30 Number o approved productions rom list provided by the Caliornia Film Commission, received by SEIU via e-mail

December 28, 2009. Studio and television channel relationships identifed by searches o corporation flings withCaliornia Secretary o State, the International Movie Database, and Variety.

31 Arnold Schwarzenegger gives Hollywood tax incentives, Politico, July 29, 2009. http://www.politico.com/news/stories/0709/25556.html

Endnotes


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www.standorsecurity.org