DNEG, a renowned VFX company known for its work on the upcoming Dune 2 and the hit film Oppenheimer, has reportedly put forth a stark ultimatum to its employees. The company’s decision has been amid the ongoing WGA and SAG-AFTRA strikes, which have ripple effects across the industry.
The Ultimatum:
According to a report by Deadline, DNEG has given its staff a choice of either taking up to a 25% salary reduction or opting into a loan scheme as a cost-cutting measure. Failing to choose one among the two presented options within eleven days would mean termination of their contracts. This urgent and stark ultimatum is anticipated to immediately impact the over 10,000 employees under DNEG globally.
Details of the Proposed Cuts and Loan Scheme:
The extent of the salary cut will be largely determined by the employees’ current salary, with an expected range of 20 to 25% for a period of seven months. Conversely, the loan scheme, tailored for those unable to withstand such a financial hit, will mean a significant cut from their salary. This amount will then be loaned back and expected to be repaid over three years. Despite the differences, both options boil down to similar financial implications, leaving employees in a bind.
In a statement to Deadline, DNEG defended its decision, expressing that this move will “enable us to maintain the maximum number of jobs through this period.” However, this has not gone down well with the workers, leading to substantial unrest.
Rapid Action Causing Unrest:
The abruptness of this decision has drawn criticism and frustration from both workers and unions. BECTU’s VFX and animation branch is preparing to hold a Zoom meeting to contemplate the next steps. They are also informing the workforce that DNEG cannot legally enforce a salary reduction without their approval. It is crucial to note that this isn’t a novel approach for DNEG, as they had resorted to similar financial strategies during the COVID-19 pandemic.
An employee quoted by Deadline highlights the shared sentiment of the workforce: “We feel like DNEG is not offering anything to compensate but are instead pushing all the weight and risk on the employee.”
In the Wake of Previous Layoffs:
This decision stands in stark contrast to DNEG’s prosperous year with a 33% revenue increase to $409 million, despite the previous layoffs in July. Around 70 workers from DNEG’s London-based headquarters were laid off, constituting approximately 7.5% of its workforce. It becomes more glaringly unjustified when considering the essential pay increases and protections that the ongoing strikes aim to achieve.
DNEG, in their statement, mentioned:
“DNEG is not immune to the impact of the current industry disruption, and we are not alone. These challenges are impacting all filmmaking departments, and our global clients are facing suspension or postponements of projects that represent meaningful revenue to all companies and professionals working in this industry.”
Industry-Wide Scrutiny and the Fight for Fair Compensation:
It is not just DNEG facing the heat. Other VFX studios are also under scrutiny for similar reasons. The industry is witnessing a groundbreaking move as Marvel VFX artists have decided to unionize, a crucial step towards changing the working conditions for the better. Disney workers are following the trail in pursuit of equal treatment and remuneration.
Call for Open Dialogue:
Philippa Childs, the Head of BECTU, condemned the unilateral decision of enforcing pay cuts and is urging DNEG to initiate a transparent dialogue with its employees. She expressed her concern to Deadline, stating that she has “encouraged DNEG to engage with us to ensure that their employees’ concerns are heard.”
Conclusion:
In conclusion, the situation at DNEG reflects the broader unrest in the industry amidst ongoing strikes for fair pay and conditions. The company’s abrupt decision to reduce pay or enforce a loan scheme, without engaging in dialogue with its workforce or unions, has intensified the turmoil. This development further underscores the essential fight for fair compensation and better working conditions within the VFX and broader film industry. Stay tuned for more updates on the evolving situation at DNEG and the continuous battles for equitable pay in Hollywood.
