SAG, AFTRA members approve merger

Despite bellyaching by a few prominent SAG members, it wasn't a contest. The yes vote was 86 percent among AFTRA members and 82 percent among the SAG folks. That makes SAG-AFTRA the largest union in Hollywood. Earlier this week, a federal judge rejected a lawsuit that would have blocked a vote on the merger plan. From The Wrap:

Supporters of the plan have long argued that merging the two unions will improve their negotiating power with studios and other media companies while strengthening their pension and health plans. "It addresses a number of problems that exist right now, namely the fact that we're in a situation where our employers have a choice to negotiate with SAG or AFTRA," Ned Vaughn, 1st vice president of SAG and chair of its Hollywood board, told TheWrap. "We can't be divided at the bargaining table." Merger boosters also claim that benefits will not be negatively impacted by bringing the two unions together, and that combining the plans will allow them to save on administrative costs.

A THR analysis finds that the SAG health plan is in financial trouble - more so than AFTRA's:

Although the health plan is under financial pressure, that doesn't mean indicate that the plan is in danger of failing. As recently as last Thursday, a statement by the trustees said "the pension and health plans are safe . . . the fiscal integrity of the Plans remains absolutely sound and participant benefits are secure." The trustees added that "There has been no change in the status of Plan assets." What it does mean, however, is that the trustees have had to make negative adjustments to the plans, and may need to do so in the future, as the fall 2011 newsletter says.