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Topic: "The Viacom Permalance Slave System"
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| devlyn | Posted – 12/4/2007 3:00:19 PM | show profile This is an article I cut and paste from www.gawker.com. Why isn't anyone talking about this? The Viacom Permalance Slave System Here's what we hear from what we believe has truly become the Viacom sweatshop. (One Viacom permalancer estimates that almost 50% of the staff are contract workers at this point.) A 50-hour workweek will now be standard, at least at MTV Digital (which means no overtime until after 50 hours, and no overtime at all for higher-level people, like producers and segment producers), and all will go from a day rate to an hourly rate. Healthcare, which was offered to permalancers after a staggering year of service, will now be offered only to employees who have worked 1,280 hours (25 of those 50-hour workweeks) in any one division. And that's the catch: Get transfered, as often happens, from VH1 to MTV or the like, and you start over on that clock. Here's how they were planning on telling people: Viacom sends out Christmas party invites to staff, but permalancers have to go pick them up. (Nice caste system.) So when permalancers went to pick up the invites, they were told "go across the table to pick up your new paperwork." We hear that at least one manager will give his or her permalancers "off the books flex holiday days," but that's not a company initiative by any stretch. What's more: Tuition reimbursement is gone. Dental is gone. Commuter pre-tax deductions via WageWorks is gone. The healthcare goes from United Healthcare to Aetna. Best of all: The company has asked workers to sign the paperwork before they attend the informational session that explains it. |
| fourfold | Posted – 12/4/2007 5:21:17 PM | show profile | email poster I am confused by this. What freelancer or contract employee goes to a company and expects tuition reimbursement, healthcare, etc.? This system is similar to that of Time Inc., where I work occasionally as a freelancer. I can't exceed 1,000 hours in any calendar year; otherwise, the company is "required" (by the Department of Labor, I think, due to some settlement years ago) to offer me a full-time job with benefits. But I don't want a full-time job with benefits. I chose freelancing for a reason. Okay, so Viacom changed the terms under which it will hire freelancers. The workers in question can take it or leave it. Am I missing something here? |
| foodlit | Posted – 12/4/2007 5:27:01 PM | show profile I don't get it either. When you contract you are not an employee and rarely get any benefits or perks at all. It looks like Viacom actually does give contractors some benefits...makes you wonder why they bother though, if this is the way it's received. Or am I missing something here? A 'permalancer' is not an employee right? |
| noname1234 | Posted – 12/4/2007 5:30:40 PM | show profile I think the issue, as I see it, is that Viacom is using "permalancers" in lieu of salaried employees as a way to get around having to give these workers benefits, etc. These aren't project-based freelancers, but folks who form what sounds like the long-term core of Viacom's workforce, minus the bennies. |
| Mag Girl | Posted – 12/4/2007 5:34:10 PM | show profile right, noname. And actually, isn't using "contract" employees like they are actually illegal? |
| Mag Girl | Posted – 12/4/2007 5:46:00 PM | show profile Straight from the IRS: Employee or Independent Contractor? An employer must generally withhold federal income taxes, withhold and pay social security and Medicare taxes, and pay unemployment tax on wages paid to an employee. An employer does not generally have to withhold or pay any taxes on payments to independent contractors. Common-Law Rules To determine whether an individual is an employee or an independent contractor under the common law, the relationship of the worker and the business must be examined. In any employee-independent contractor determination, all information that provides evidence of the degree of control and the degree of independence must be considered. Facts that provide evidence of the degree of control and independence fall into three categories: behavioral control, financial control, and the type of relationship of the parties. These facts are discussed below. Behavioral control. Facts that show whether the business has a right to direct and control how the worker does the task for which the worker is hired include the type and degree of: Instructions that the business gives to the worker. An employee is generally subject to the business' instructions about when, where, and how to work. All of the following are examples of types of instructions about how to do work. When and where to do the work. What tools or equipment to use. What workers to hire or to assist with the work. Where to purchase supplies and services. What work must be performed by a specified individual. What order or sequence to follow. The amount of instruction needed varies among different jobs. Even if no instructions are given, sufficient behavioral control may exist if the employer has the right to control how the work results are achieved. A business may lack the knowledge to instruct some highly specialized professionals; in other cases, the task may require little or no instruction. The key consideration is whether the business has retained the right to control the details of a worker's performance or instead has given up that right. Training that the business gives to the worker. An employee may be trained to perform services in a particular manner. Independent contractors ordinarily use their own methods. |
| Mag Girl | Posted – 12/4/2007 5:46:22 PM | show profile continued COntinued: Financial control. Facts that show whether the business has a right to control the business aspects of the worker's job include: The extent to which the worker has unreimbursed business expenses. Independent contractors are more likely to have unreimbursed expenses than are employees. Fixed ongoing costs that are incurred regardless of whether work is currently being performed are especially important. However, employees may also incur unreimbursed expenses in connection with the services that they perform for their business. The extent of the worker's investment. An independent contractor often has a significant investment in the facilities he or she uses in performing services for someone else. However, a significant investment is not necessary for independent contractor status. The extent to which the worker makes his or her services available to the relevant market. An independent contractor is generally free to seek out business opportunities. Independent contractors often advertise, maintain a visible business location, and are available to work in the relevant market. How the business pays the worker. An employee is generally guaranteed a regular wage amount for an hourly, weekly, or other period of time. This usually indicates that a worker is an employee, even when the wage or salary is supplemented by a commission. An independent contractor is usually paid by a flat fee for the job. However, it is common in some professions, such as law, to pay independent contractors hourly. The extent to which the worker can realize a profit or loss. An independent contractor can make a profit or loss. Type of relationship. Facts that show the parties' type of relationship include: Written contracts describing the relationship the parties intended to create. Whether or not the business provides the worker with employee-type benefits, such as insurance, a pension plan, vacation pay, or sick pay. The permanency of the relationship. If you engage a worker with the expectation that the relationship will continue indefinitely, rather than for a specific project or period, this is generally considered evidence that your intent was to create an employer-employee relationship. The extent to which services performed by the worker are a key aspect of the regular business of the company. If a worker provides services that are a key aspect of your regular business activity, it is more likely that you will have the right to direct and control his or her activities. For example, if a law firm hires an attorney, it is likely that it will present the attorney's work as its own and would have the right to control or direct that work. This would indicate an employer-employee relationship. |
| Louisewasnothalfbad | Posted – 12/4/2007 6:22:14 PM | show profile One year when I worked at Style, on a show that took me and my crew out into the wide, wide, flu-laden world, only staff could get free flu shots. Never mind that I was scouting and meeting about a dozen families a week, and then bringing their germs back into the office. |
| devlyn | Posted – 12/5/2007 6:10:59 PM | show profile my friend who works at Viacom has worked there 3 years. She has a desk, she has a boss (several bosses), she goes to the staff meetings, she has regular office hours and is expected to function as a full time employee. But she's still considered a freelancer. A person she works with took the job under the pretense that after she worked a year she'd get benefits. she's been there 11 months and now because of this system, she has to start from scratch. all that time gets erased. |
| Mag Girl | Posted – 12/5/2007 6:34:24 PM | show profile devlyn, they really should consider a class-action lawsuit. That sort of situation is completely illegal. They are taking advantage of people because they think/know they can get away with it - that is, until someone steps up to do something about it. |
| astrahook | Posted – 12/5/2007 6:39:43 PM | show profile What about the part where freelancers/contractors/temps typically earn more then their salaried counterparts (albeit without benefits), and often earn time and a half. |
| Mag Girl | Posted – 12/5/2007 6:47:19 PM | show profile Does the extra salary take into account all the extra taxes they have to pay? And they wouldn't be eligible for unemployment should they lose their jobs. Regardless, this type of employment classification is illegal. What if every company started to try to get away with this? Then the health insurance situation in this country would be even worse than it is now. There's nothing wrong with legitimately hiring contract employees/freelancers for short-term or limited project assignments, but this is ridiculous. |
| bernii | Posted – 12/5/2007 9:11:33 PM | show profile The folks in question are paid on W2s, not 1099s. Years ago MTV Networks moved almost all "independent contractors" over to this status. Since taxes are taken out, the IRS doesn't get on their case. Yet many permalancers never qualify for benefits since they move around the company, or have breaks in service. It is very different from being a freelance writer, let's say, with many clients. As someone stated above, these permalancers often go to work in the same place every day for long periods of time, just like "real employees". But without the same benefits. |
| bernii | Posted – 12/5/2007 9:12:41 PM | show profile Oh yeah, if you work long enough continuously, you ARE eligible for unemployment if you are let go. |
| Mag Girl | Posted – 12/5/2007 10:42:38 PM | show profile Well yeah, of course you can receive unemployment if you're employed on a W2 basis. But in that case, what they're doing still doens't make sense. How can they separate out people who do the same work as other people considered full-time employees, have a regular schedule, offices/cubes/workstations, plus get paid on a W2 basis, but NOT consider them employees?? That makes zero sense. I'm no employment lawyer, but that still sounds like it would be illegal. |
| Permalance7 | Posted – 12/5/2007 10:51:45 PM | show profile Clarification Hi everyone. I just wanted to clarify the permalance situation at Viacom: what it entails, and what we're losing after the New Year. There are so many rumors flying, but I'm fairly-to-mostly sure of the details listed below. We have a meeting next week to go over more specifics. Many freelancers have spent most of a decade at Viacom. I've been here for nine years, largely uninterrupted by breaks in projects. I became eligible for permanent Staff right around the same time they froze hiring. As a freelancer, we are expected to appear at the office everyday and work no less than 40 hours per week, though it can push 60 or 70. We each have an office location, a computer, and a phone and e-mail account. I consider it a full time job and have always done so. Whether you've worked at Viacom for nine days or nine years, as of January 1st, 401Ks, paid holidays, tuition reimbursement, and commuter reimbursement are gone. Long-time employees will have their medical benefits slashed, and will pay 40% of the policy (instead of the old 20%). Shorter term employees (anyone hired in 2007) will not be eligible for medical until at least July. Then, they will be expected to pay 80% of the policy. It is unclear if we will be covered for time between projects, which happens often and can range from a few days to a month. Lower-level employees will become eligible for overtime in 2008. Those above an Associate Producer will not. We are no longer able to transfer between in-house networks (which occurs frequently) and keep our benefits. We will start over from scratch if we do so. These changes affect 14,000 people. I estimate they will cost me a minimum of $6000. |
| foodlit | Posted – 12/6/2007 10:34:46 AM | show profile Why do people stay at Viacom? |
| Permalance7 | Posted – 12/6/2007 11:37:09 AM | show profile I can't answer for everyone else, but I stayed because I like the people, the environment, the work, and it helped put me through grad school. Until recently, there was an opportunity for advancement and the benefits package was reasonable. (Not good, but reasonable.) |
| bernii | Posted – 12/6/2007 11:57:45 AM | show profile Please add updates to this thread if you can. There are many people out here (okay...include me!) who have permalanced for MTV Networks in the past and may be tempted to return in the future. We have the same concerns that you do but we won't be at the party. Not even the Lodge, since my ID expired. Thanks! |
| devlyn | Posted – 12/10/2007 6:06:12 PM | show profile I'm not sure why mediabistro isn't reporting on this issue since about 50% of Viacom's work force is freelance, but for those who are interested, here's a link to an article which provides an update on the situation. It also contains the full press release from Viacom freelancers. They had a walkout at 3 pm today. http://nymag.com/daily/intel/2007/12/at_3_pm_today_what_will_sumner.html |
| catlondon | Posted – 12/10/2007 6:23:19 PM | show profile I have to admit, I don't get it. When I was freelancing, I got a check and that was it. I still do some freelancing and all I get is a check. I was (and am) responsible for all my insurance, taxes, commuter costs, etc. So I guess I don't quite get the uproar. If you're all freelancers, just up your day rate. |
| catlondon | Posted – 12/10/2007 6:31:38 PM | show profile Anyway, I agree with MagGirl. If it's not illegal it should be. I though when the IRS went after Microsoft, things tightened up, but I guess not. |
| pamelabeth | Posted – 12/10/2007 7:23:11 PM | show profile i *think* the issue here is that workers are acting as full-timers, with long-term, full-time commitments expected from them, but they are not being given what "official" full-timers get (guaranteed benefits, sick days, etc.)--and whatever they have been given thus far is being eaten away. is that it? i am a freelancer, and i get no full-time "perks" at all--any sick day is unpaid, my health insurance is up to me; everything is up to me. but i arrange my schedule. i tell people when i am free and when i am not. i have multiple employers and multiple projects. it sounds like "freelancers" at viacom do not have this arrangement; they are freelancers in name (and lack of benefits) only. correct me if i'm wrong. i have seen viacom jobs of this type advertised. and they have at first seemed like interesting possibilities to add to my freelance roster--until i've seen what they require, and have asked myself, "this is freelance *how*?" |
| catlondon | Posted – 12/10/2007 7:37:16 PM | show profile I guess I still don't see how this is different from most people's "at will" working life. Employers slash benefits and lay people off all the time. If the problem is that there's a two-tier benefit structure for employees, then that's a company issue. Does it bring up a bigger issue of worker's rights within the United States, yes. Do I feel more badly for the Viacom workers than I do for the thousands who lost their jobs as a result of the sub-prime mortgage scandal--no. |
| ManhattanMatt | Posted – 12/10/2007 8:17:18 PM | show profile I think many of you are missing the point here ... "Freelancers" on this board are truly FREELANCERS; you're an independent contractor who negotiates rates per project for a client. "Freelancers" at Viacom are not really freelancers ... they're full-time non-staff employees with no benefits or seniority. They get paid as W-4s, not 1099s. These people can't just "up" their "daily" rate any more than a staff editor can. They're typically paid dismal rates ($20-35K), and can barely afford the rent, let alone their own health insurance. |
