[e-drive][EQUIFLASH: INSURANCE ARBITRATION AVERTED]

[Patricia Joyce]

~~~~~~~~~~ e-drive ~~~~~~~~~~

Insurance Arbitration Averted

Arbitration over the growing deficit in Equity's accident and sickness
insurance plan was narrowly averted on July 19th in a turn-around
decision to adjust the premiums for the plan. Representatives from CAEA
and PACT agreed to attempt to negotiate a final resolution before
bringing the matter before arbitrators in November. The negotiations
concluded with a deal to increase producer premiums by up to $1.50 per
week, enough to meet the current demand on the insurance plan. Executive
director and chief negotiator Susan Wallace explained,

"This is a welcome end to our dispute over the mounting deficit in the
insurance plan. The agreement will serve to cover ongoing claims and end
the depletion of our plan reserves. Without resorting to a potentially
costly arbitration proceeding, both sides have agreed to contribute
towards the current debt and to the increased premium of up to $13.50 to
cover running and future claims."

On the base plan, the premiums will increase to:

- $13.50 per week for Shaw Festival, the Stratford Festival, and for
productions mounted at Company Category A-2;
- $13.00 per week for Company Categories A (including A+), B, C, D, and
E; $11.00 per week for Categories F, G, and Theatre For Young Audiences;
- and there will be no change to the insurance premium for Workshops and
Readings.

These increases are retroactive to April 1, 2002, and will be effective
for the remainder of the current term of the CTA.

CAEA will make a one time payment of $58,827 to settle the accumulated
debt in the plan and a one time payment of $10,000 to be applied to the
current deficit. PACT will make a one time payment of $17,500 toward the
current deficit.

Equity and PACT agreed to resolve the deficit in the top-up plan by
increasing premiums, applying retroactive payment and by negotiating a
reduction in supplemental benefits coverage. For the life of Mirvish
Productions' "The Lion King" or the current CTA (whichever comes first),
the supplemental insurance premium for the production of "The Lion King"
will be $10.00 per week contributed by the Artist, matched by an equal
contribution by the theatre. CAEA will pay a retroactive increase of
$5.00 per week on behalf of its members in the company. Participation in
the top-up plan will be mandatory for artists who join the company after
July 29th, 2002. In addition, CAEA will negotiate a reduction in the
benefits available under the supplemental coverage such that it can be
reasonably demonstrated that the additional premium will meet the
anticipated claims demand, final details of which will be available in
late August.

Upon ratification of the deal, CAEA withdrew its May ruling increasing
the insurance premium for "The Lion King," as well as its allegation
that PACT was bargaining in bad faith and the subsequent demand for
arbitration. Following acceptance of the deal, Mirvish Productions also
withdrew its demand for arbitration.

While changes in the premium are for the duration of the current
Canadian Theatre Agreement only and will not form the basis for future
negotiations, the insurance plan stands to be a key topic for the next
round of bargaining. Susan Wallace explained,

"We anticipate revisiting the insurance plan in negotiations for at
2003-2006 CTA which will begin in March 2003. This experience identifies
that more permanent changes may need to be made to avoid this situation
in the future."

For more information of the insurance deficit, see "Insurance Plan
Teeters" in the May issue of the Equity newsletter; "Insurance Deficit
Ruling and Demand for Arbitration" in the June issue; and "Insurance
Arbitration Ahead" in the summer issue. Comments, questions or concerns
should be directed to executive director, Susan Wallace or Equity
controller, Douglas Irons.