Residuals

In 1960, what SAG officials feared a decade earlier became reality. Actors didn’t receive a dime for films they made for major motion picture studios when those films were licensed to television networks.

As early as the 1948 contract talks, Guild leadership had raised the issue of residuals. In 1952 SAG was successful in negotiating residuals for TV show re-runs. But features remained a sticking point with producers.

During the 1960 contract talks, negotiators sought residual payments on all televised films dating back to 1948, while also demanding producers make contributions toward the creation of a health and pension fund, something nearly every other industry in the country already had.

The major studios balked at the Guild demand, claiming residuals would bankrupt them. Determined that actors would never be paid residuals, they maintained that actors were paid at the time the film was made and claimed actors wanted "to be paid twice for doing one job."

Strike

On March 7, 1960, Guild members, by an 83 percent vote, approved a strike. The strike immediately shut down the major studios and several feature films in production. The producers complained that the payment of residuals was too costly. At one point, a motion picture studio head actually cried at the bargaining table as he pleaded against residuals. The media echoed the producers' complaints despite the fact that 69 percent of Guild members made less than $4,000 a year.

The fight was a difficult one and, as the weeks passed, the strike took a serious toll on both sides. Finally, a compromise was reached. The Guild agreed to forego residual payments on films made prior to 1960. In return, producers agreed to pay residuals on all films made in 1960 and afterward.

In lieu of residuals from 1948 to 1960, the Guild accepted a payment of $2.25 million to form a pension and health plan. Five weeks and a day after the strike started, the membership ratified this deal with a vote of 6,399 to 259.

SAG members have been collecting residuals ever since. The Residuals Department sent out 1.8 million checks worth $238.5 million to Guild members in 1995. The final figures for 2003, which are not yet available, may be the largest yet both in terms of checks sent and dollars distributed.