EMPLOYMENT ISSUES: Terms & Conditions: Preference of Employment vs. First Consideration

By: AICP Labor Relations Staff

Welcome back to “Terms & Conditions”, our monthly column on AICP Labor Agreements brought to you by the AICP Labor Relations Dept. This month, we’re delving into two similar and frequently confused contract concepts: “Preference of Employment” and “First (or Fair) Consideration for Employment.”

“Preference of Employment” is a contractual obligation that requires the employer to hire from a specified pool of workers. So, if someone is on the “preference list” (like an industry roster or qualifications list), they must be hired ahead of others who are not on the roster or list.

“First Consideration for Employment” (also known as “Fair Consideration” or “Good Faith Consideration”) requires the employer to look at, or “consider,” workers on a roster/list before hiring outsiders, but it does not obligate employers to actually hire those rostered/listed workers. In this situation, the employer fulfills the contractual obligation by considering workers on a roster/list, but can still hire non-rostered/non-listed candidates.

How does this work in the AICP Agreements?

IATSE Commercial Production Agreement (“CPA”)

  • Preference of Employment is limited to workers hired in Los Angeles County to work in L.A. County (or hired in L.A. County to work outside of L.A. County). Per the CPA, Employers must hire employees who are on either the Industry Experience Roster (“IER”) or Television Commercial Roster (“TCR”). The Contract Services Administration Trust Fund (“CSATF”) maintains these rosters for the film industry. Click here to search the rosters.
  • The CPA provides an exception to the above requirement: Employers have the authority to hire agency- or advertiser-designated individuals to perform covered work even if those individuals are not on the IER or TCR. In this scenario, it is common practice for the Employer to give the local union a courtesy notification about an agency/advertiser-designated hire. Importantly, Employers are not required to obtain “permission” or a “waiver” from the union in this situation.
  • Outside of L.A., employers are required to provide “First Consideration” to workers referred by the IATSE Local in the region where you’re working. In order to provide first consideration, you should contact the IATSE Local and request a referral list or roster. However, you may ultimately hire non-rostered candidates. (Note: If you hire non-rostered candidates, you are still required to pay them on the appropriate union timecard, regardless of their status as members or non-members of the union.)

Teamsters Local 399 Television Commercial Agreement (“TCA”)

  • Preference of Employment is limited to workers hired in Los Angeles County to work in L.A. County (or hired in L.A. County to work outside of L.A. County). In this scenario, Employers must hire Employees who are on either Industry Experience Roster (“IER”) (note that the TCR is only applicable to the IATSE CPA.) Click here to search the roster.
  • Outside of L.A. County, Employers are required to provide “Fair Consideration” to workers referred by the Teamsters Local in the region where you’re working. In order to provide fair consideration, you should contact the Teamsters Local and request a referral list or roster. However, you may ultimately hire non-rostered candidates. (Note: If you hire non-rostered candidates, you are still required to pay them on the appropriate union timecard, regardless of their status as members or non-members of the union.)

DGA National Commercials Agreement (“NCA”)

  • Preference of Employment for Assistant Directors and Unit Production Managers is based on the Commercials Qualifications List (“CQL”), which has three regions: Southern California, New York, and Third Area (i.e., the rest of the U.S. outside of SoCal and NY). In Southern California and NY, you must hire ADs/UPMs from the SoCal or NY Qualifications Lists. In the Third Area, you can hire from any of the three lists: SoCal, NY, or Third Area. Click here to search the CQL.
  • Unlike the IATSE and Teamsters, the DGA has a nationwide preference of employment requirement, even if you’re in the Third Area you must hire from the CQL. The only exception to this is for 2nd ADs in the Third Area: you can give first consideration to DGA 2nd ADs within 75 miles of your production location, but you are not obligated to hire them.
  • What about Directors? The contract doesn’t provide either a preference of employment or first consideration clause for directors – technically anyone can be hired as a director!

Northeast Corridor (“NEC”) Agreements

  • IATSE Local 52: There is neither a preference of employment nor a first consideration for employment, however, employees hired to perform covered work within the contractual jurisdiction must be employed in accordance with the terms and conditions of the Agreement.
  • IATSE Local 161 NEC: First consideration must be given to employees referred by the Local. In order to provide first consideration, you should contact the Local and request a referral list. However, you may ultimately hire non-rostered candidates. (Note: If you hire non-rostered candidates, you are still required to pay them on the appropriate union timecard, regardless of their status as members or non-members of the union.)
  • IATSE Local 600 NEC: First consideration must be given to employees referred by the Local. In order to provide first consideration, you should contact the Local and request a referral list or roster. However, you may ultimately hire non-rostered candidates. (Note: If you hire non-rostered candidates, you are still required to pay them on the appropriate union timecard, regardless of their status as members or non-members of the union.)
  • IATSE Local 798 NEC: First consideration must be given to employees referred by the Local. In order to provide first consideration, you should contact the Local and request a referral list or roster. However, you may ultimately hire non-rostered candidates. (Note: If you hire non-rostered candidates, you are still required to pay them on the appropriate union timecard, regardless of their status as members or non-members of the union.)
  • Teamsters Local 817 Drivers: Preference of employment must be given to drivers referred by Local 817. You should contact Local 817 for a referral list and must hire from among that list.
  • Teamsters Local 817 Location Scouts/Managers: Preference of employment must be given to Location Scouts/Managers on the Local 817 Industry Experience Roster. You should contact Local 817 for their IER and must hire from among that list.
  • United Scenic Artists Local 829: There is neither a preference of employment nor a first consideration for employment, however, employees hired to perform covered work within the contractual jurisdiction must be employed in accordance with the terms and conditions of the Agreement.

Necessary Disclaimer: The information provided here is a general overview for educational purposes and should not be considered fully comprehensive or exhaustive of the subject matter covered. For guidance on specific situations or other contract-related questions, please contact David Michael González, Director of Labor Relations, davidg@aicp.com, and Ralph Loyola, Labor Relations Manager, ralphl@aicp.com.