As we all know, the COVID-19 pandemic and resulting live performance sector shut-down has lasted longer than we ever imagined. Our two physical offices closed over one year ago and one will not be reopening in the near future. The word unprecedented doesn't even begin to address the apprehension, concern and difficult choices faced by Equity and its membership over the last 12+ months.
Council and Equity's staff have been hard at work providing support to the membership during this time. Online member meetings have not only provided essential information but have helped the membership stay in touch with the Association, Councillors and each other when the industry was effectively shut down. Equity's tireless advocacy with Government resulted in first getting, and then keeping in place, key income supports to sustain members until venues can open safely and we can all begin to resume the work we all love. We hope that these efforts have benefitted you during these very trying times.
Thank you to the many members who have reached out to Council and staff sharing your appreciation of how helpful the member meetings and Equity's advocacy efforts have been. Your feedback is appreciated and your words of support have been very meaningful during a difficult year.
With vaccines slowly becoming more available, we hope it won't be much longer until live performance work can begin in earnest once again. However, we are not there yet and recently faced more difficult choices in order to continue to provide reasonable services.
Equity remains operating on only 26% of our normal earned revenues plus government supports, such as the Canada Emergency Wage Subsidy (CEWS), the Commercial Rent Assistance (CECRA) and more recently the Canada Emergency Rent Subsidy (CERS). These subsidies will account for over 45% of our revenue for the 2020-2021 fiscal year.
The wage subsidy is scheduled to end in June of this year and Equity has had to responsibly budget for the year ahead. Artists working on Equity contracts have seen their earnings plummet over the last year by almost 80%. This has resulted in a corresponding drop in revenue for the Association as Equity does not receive funding from any source, other than basic dues and the dues that artists pay when working under an Equity contract. With no more places from which to save, our only remaining cost saving option is to make cuts to staff.
Therefore, effective April 5, 2021:
- All senior staff will have their earnings reduced further and some will have their hours reduced accordingly.
- In addition to the two permanent layoffs already announced, another staff person will leave the Association.
- We will introduce temporary rolling layoffs for a number of staff in the Business Representative Department. Rotating layoffs will be for shorter periods, one after another, making it easier and faster to restart our full staff complement when we emerge at the end of the pandemic.
- Remaining staff have had their hours cut and wages reduced accordingly.
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Our current draft budget for the upcoming fiscal year is based on total revenues from all sources being almost 60% less than normal. It is important to note that after factoring in the end of the remaining government subsidies and savings from reduced staffing costs,
we anticipate a significant deficit for the coming fiscal year and will continue to have to draw from our operating stabilization fund to cover a further $1M plus revenue shortfall.
These were difficult choices. When all these measures come into effect in April, Equity will have lost 40% of its pre-pandemic staffing capacity. As a result, slower response times are to be expected. Engagers will notice that new time saving processes may be applied to some engagements. Many of Equity's staff are now job-sharing in new ways with steep learning curves. We ask that you be patient when reaching out to Equity and understand if it takes a while longer for us to respond. Please continue to reach out to your usual Business Representative and your email will be dealt with by another of our Business Representatives who is familiar with the agreement or policy under which you normally work.
The decision to have to reduce our staffing levels even further has been taken as a last resort in order to maintain a level of fiscal responsibility and financial stability. It is essential that there is a functioning structure in place for when production levels increase. We hope that rolling layoffs will allow us to staff up more flexibly when the work returns. However, we are still committed to providing the best level of service we can with the restrictions we are currently working under. As a result, we ask for your cooperation in reaching out to Business Representatives as soon as possible to discuss your production as it will be difficult to accommodate last minute requests.
And lastly, we want to recognize the staff who will be leaving us temporarily or permanently and thank them for their good work and specifically for their graciousness as we continue to navigate this ever changing situation. As always, members are encouraged to contact either of us at the email address links below with any questions or concerns.
- Council President Scott Bellis and Executive Director Arden R. Ryshpan
#EquityStrong