The Biggest Misconception In The VFX Industry?

Everyone knows subsidies are one of the biggest reasons US Studios choose to do VFX work in certain locations.

What could be the biggest misconception in the VFX industry is to think that it’s the facilities we work for that receive government rebate money. According to some that I talk to in the industry, it’s the studios that receive the money, not the facilities.

This was recently verified when I asked Former ILM General Manager and Digital Domain Founder Scott Ross about them. Here is what he said:

How I understand it is…. the studio says I need the budget to be $9….

The VFX studio bids the work in LA and the cost is $9 so the bid is for $10.

The VFX studio bids the work in BC and the cost is $9 so the bid is $10

But if the work takes place in BC, the studio receives a 25% rebate so now the work costs the studio $7.50, even though the work is bid $10.

The good news for the studio is they get $10 work for $7.50

The good news for the VFX facility is they get the work.

The bad news for the VFX facility is….. they get the work, which after change orders,redos, bad management etc., …. They get the shaft.

What about facilities owned and run exclusively in Canada?

Poach-gate Update: Collusion Details To Come

Bloomberg reports that Lucasfilm, Pixar, and other Bay Area which were hoping to dimiss the class action lawsuit must proceed:

Google Inc. (GOOG) and Apple Inc. (AAPL) were among seven technology companies that must face a lawsuit claiming they violated antitrust laws by entering into agreements not to recruit each other’s employees, a federal judge said.

But the bigger news is this:

The decision yesterday requires the defendants to produce documents describing the agreements and permits lawyers to take depositions, Saveri said. “We get to see what really happened,” he said, adding that damages in the case could amount to hundreds of millions of dollars.

If you have any info that might help I’d encourage you to contact the plaintiff attorneys at Lieff Cabraser.

Soldier On.

No Oscar Nom For Andy Serkis

Well our long international nightmare is over: Andy Serkis was not nominated for an Oscar after trying to take credit for the work of countless VFX animators, artists, and TDs who worked on Rise of the Planet of the Apes.

I found the whole debate silly as it was a diversion from the real issues effecting the VFX industry. What’s sad is that as Andy continued his campaign for an Oscar, he started doubling-down on his persistent ability to show how little he knows about the process.

He kept referring to the work as “digital make-up”, as if the Caesar model was just wrap-deformed onto his motion capture performance. Animator and blogger Tim Borelli who started a rebuttal to Serkis’s campaign with an open letter to him, recently found a smoking gun that pretty much puts this debate to rest:

Obama Speech Touches On VFX Issues

Tonight’s State of the Union speech by US President Barack Obama was the final one before the 2012 elections in November. The President touched upon a very big issue effecting the US VFX industry: Subsidies.

The President has ordered the creation of a Trade Enforcement Unit tasked to essentially pick up the pace on trade violations by countries competing with the US:

It’s not fair when foreign manufacturers have a leg up on ours only because they’re heavily subsidized.

You can read the whole speech here.

Poach-gate Scandal: VFX Idol Steve Jobs Involved

Names are dropping in the latest set of documents obtained by techcrunch in the ILM/Pixar collusion case which VFX artist David Stripinis is cleverly calling “Poach-gate”.

What the memos reveal is that this wasn’t just some silly agreement that was made up between 2 recruiters over a coffee break. It was a clearly a mechanism designed to lower wages by some Big Bay Area tech company CEOs like Apple/Pixar’s Steve Jobs and Adobe’s Bruce Chizen:

In one particularly juicy piece of evidence from May 2005, Adobe’s CEO Bruce Chizen emailed Steve Jobs regarding “Recruitment of Apple Employees”. In the message, Adobe’s SVP for human resources writes “Bruce and Steve Jobs have an agreement that we are not to solicit ANY Apple employees, and vice versa.”

Then there is this memo sent by Pixar Vice President of Human Resources Lori McAdams:

“I just got off the phone with Danielle Lambert [of Apple], and we agreed that effective now, we’ll follow a Gentleman’s agreement with Apple that is similar to our Lucasfilm agreement.”

Lori McAdams has served as HR Director at other companies like Tippett Studios, Electronic Arts, and LucasFilm. LucasFilm and Pixar are involved in the collusion case. Was Tippett and EA also involved?

Furthermore, consider how remarkable this case has become. Steve Jobs, Pixar, and Lucasfilm. For VFX artists these names are nothing but legends to us and could do no harm. Look at what the Justice Department’s investigation revealed. Behind our backs they colluded to drive wages down.

What’s amazing is that even when warned that this practice was illegal Steve Jobs and others continued with the practice. PALM’s then CEO Ed Colligan sent an email to Steve Jobs that the no-poaching agreement was illegal:

“Your proposal that we agree that neither company will hire the other’s employees, regardless of the individual’s desires, is not only wrong, it is likely illegal,”

We Need To Organize

Ask yourself this question: Why did the most trusted people in our industry betray us?

Because they could. They knew workers in our industry look at Steve Jobs, Pixar, and LucasFilm as idols and that we would shrug our shoulders and look the other way.

I’m disgusted by the tone of the emails. The agreements between the companies seemed so casually accepted. What if just an organization that represented VFX workers in California existed? Don’t you think the tone of those emails would have changed?

There would be at least some concern by the execs that they could run into problems with a guild that found out about the practice. Sure there’s the law (which only gave a slap on the wrist), but they’re looking at the forrest. We need something focused on our set of trees.

I couldn’t help but agree with VFX artist Dave Rand’s tweet that basically says this is all just a big calling card for us to unionize:

A Giant Neon Sign Blinking “Please PLEASE Organize!”…we are!…even illegally n shamelessly..and right in your face

It’s sort of funny to see so many VFX workers outraged about SOPA and Andy Serkis yet this gets not much play at all. Orwell was right when he said “To see what is in front of one’s nose needs a constant struggle.”

But perhaps there are more of us coming around and connecting the dots to the bigger picture. I couldn’t help but agree with this anonymous comment on a post by The Animation Guild:

Americans need to understand that the 1% are rich not because they work harder, but because they work together. Collusion, sweetheart deals, and outright monopolies. lawmakers, lobbyists and lawyers work for their friends and their friends pay them back.

Anti-union efforts are intended to prevent the 99% from working together. Each artist acts like he or she is on his own and has to undercut everyone else to be “safe”. That’s a losers game.

Soldier On.

Here are older posts on this issue:

Collusion

ILM Pixar Collusion Court Documents

Lee Stranahan On Lucasfilm/Pixar Collusion

VFX Recruiter Comments On Collusion

What Is The Croner VFX Survey?

May The Lawsuit Be With You

What’s Happening With LucasFilm/Pixar Collusion Case?

VFX Supe Mark Stetson Supports Unionization & Trade Organization

Digital Artists Agency Founder Bob Coleman mentioned a VES Founders Award acceptance speech by Mark Stetson, an Oscar winning VFX Supervisor.

You can view the video here.

It’s a fascinating speech not only for his support of a trade organization or labor union, but because he reveals that as a one-time VFX facility owner, he was against unionization:

I was very fortunate to have started my VFX career at a time when VFX workers were covered by labor contracts and health insurance, under the auspices of the International Alliance of Theatrical and Stage Employees.

The studios were bound by collective bargaining agreements with IATSE Locals, as are today virtually all the other departments in film production and post‐production.

The visual effects companies who worked on the top films worked within that. IATSE and the AFL‐CIO Union Locals covered most VFX workers.

Shamefully, that is no longer the case. We all watched the influence of the Unions dissolve away from the Visual Effects industry, and let it slip away.

I’m personally guilty of this – I dodged the unions while I ran Stetson Visual Services, so we could compete against other non‐union shops.

The VFX Trade Organization Hamburger

There is a hot threat on linkedIn that was started by former ILM General Manager and Digital Domain founder Scott Ross.

He would like various VFX facilities to pay $3 Million for the first year to establish a VFX Trade Association. Here is a snippet:

1. The ills of the industry can all be traced back to one single issue: VFX facilities are unable to make a profit.

2. If VFX facilities were able to be profitable, many of the issues raised would simply go away.

3. IMHO, an International Trade Association could address the core problem.

4. For an International Trade Association to be successful, several things have to happen:

a) At least 4 or 5 of the Big 10 need to be members
b) There needs to be a substantial budget to do the work
c) There needs to be broad based support from artists and owners alike

5. I have unsuccessfully tried to organize the Big 10 executives

6. I have unsuccessfully tried to get the support of the VES
7. I am now trying to get an awareness and hopefully broad base support from the artists, and other owners, in the hope that, like OWS or the Arab Spring, the populace could effect change.

Scott Squires has his reaction which I largely agree with. To say that profits for VFX facilities will trickle down and end bad labor practices is simply not true: Look at Pixar, they make a HUGE profit and engaged in collusion. However, at the end of the day I agree that the industry needs a trade organization to represent the VFX facilities.

Jeff Heusser Interviews Art Directors Guild Prez

VFX Artist and FXGuide co-founder and write Jeff Heusser interviews Art Directors Guild president Tom Walsh:

http://www.fxguide.com/fxpodcasts/fxpodcast-another-chat-with-tom-walsh/

I wrote a post a few months ago about my surprise to hear the efford by the Art Directors Guild to represent matte painters and previz artists. The latest surprise is that the IATSE is allowing Tom Walsh to speak with Jeff Heusser but not letting Jim Goodman, the man in charge of organizing VFX for the IATSE, do an interview.

Is it free-for-all time? Does that mean The Animation Guild can freely try to organize other VFX artists?

Jeff Heusser also speaks about the effort to improve the VFX industry by Scott Ross, the VES, and the various labor organization groups. All have one thing in common: They all seem to be stuck in the mud.

Soldier On.

VFX Negotiation Case Study I: Tactics

A fellow reader sent an email asking advice about contract negotiations. I’m not an expert on negotiations. However I wanted to post this as a case study of the common tactics used during negotiations. To protect the worker’s identity, let’s call him/her Jamie.

Jamie wanted to break into the VFX industry and agreed to work for a facility that offered no overtime and a 50% paycut with the promise of a promotion to a better position and original salary at a sister facility the following year.

A year passes and Jamie’s contract is up. Jamie is the go-to person when it comes to getting the job done. Jamie feels that nobody can do what Jamie is able to do. The facility looks like it’s ready to offer that promotion, but first they invite Jamie to sign an agreement to a year extension of the current contract. They state that the terms of the promotion and raise will be discussed at the performance review instead.

In my humble opinion Jamie is being royally screwed. There are a lot of old tricks being used that I’ve fallen for before:

A Token Payment

Are you a VFX artist looking for a job? Here is an opportunity of a lifetime:

LIBERATOR is a 20-minute short film/back door television pilot. It stars Lou Ferrigno (The Incredible Hulk) as a disgraced, washed-up, ex-superhero whose attempts to get his life back on track go south when his secret black ops past comes back to haunt him. Also stars Peta Wilson (La Femme Nikita,) Michael Dorn (Worf from Star Trek: The Next Generation) and Ed Asner (Up).

We are seeking VFX artists to handle a variety of shots from simple compositing and dust layers and green screen layering and finessing, to 3-D modeling and explosions. We have two excellent artists working on the film but need more to finish by our deadline, Jan 31. There is pay, but it’s only a token payment. There is very little money left in the budget. The ideal candidate will be excited about getting in on the ground floor of a new superhero franchise with this great cast, as well as imdb credit. This project is repped by New Wave Entertainment and also feature original comic art from former Marvel Comics Art Director Darren Auck.

To learn more, please visit www.facebook.com/liberatormovie.

Watch the sizzle reel here: http://vimeo.com/32345245

Fellow VFXers, please don’t fall for this bullshit. As you can see from the video above they spent all their budget on Z-list actors and Ed Asner in front of a green screen that they hope will have explosions and shit on it.