West End Theatres face strikes
London theatre members could take action after rejecting a 1.6% pay offer.
The Society of West End Theatres (SOLT) is considering its next move following a 99.6% vote against the pay offer in a ballot this week.
In the ballot, 98% of voting members called for a further vote on strike action to be run if no improvement is made in the offer.
The union has been running a campaign to fight low pay in the entertainment industry - figures for West End theatre workers reveal an average wage of £6.33 per hour.
Despite the downturn in tourists since September 11, BECTU says that London's theatres can look back over three years of consistently good profits, and should be able to fund decent pay increases.
The two largest theatre chains in the West End have filed healthy financial reports for recent years. At Really Useful Theatres, previously Stoll Moss, directors received £602,000 each in 2000, and Ambassador Theatres made a profit of £12.5m.
Press information from BECTU
Wednesday 19 December 2001
West End theatre workers to ballot for strike action over poverty pay.
A ballot by West End theatre workers has rejected a 1.6% pay offer from the Society of London Theatre. 99.6 % rejected the offer while 98% voted to instruct leaders of the broadcasting, entertainment, cinematograph and theatre union BECTU to ballot them for strike action if the employers fail to improve the offer.BECTU theatres organiser Mark David-Gray said: "Poverty pay affects thousands of workers in theatre throughout the country. The average hourly rate in the West End is £6.33 and many earn much less. "The Council of Europe considers anything under £7.37 an hour to be poverty pay. Using more modest criteria, the Low Pay Unit says £6.80 per hour is not enough to live on. "The pay of West End theatre workers, who face the additional costs of living and working in the capital, falls well below either benchmark."
The union has notified SOLT of the ballot result. "We remain open to a constructive response from the employers" said Mark David-Gray.
Contact:
BECTU press officer Nick Wright on 020 7437 8506 mobile 0976 943514
Mark David-Gray on 020 7437 8506 or mobile 07979 758557
Information for editors
What is low pay?
"The right to a fair remuneration" is a fundamental right under the European Social Charter (to which the UK is a signatory). Article 23 of the UN Universal Declaration of Human rights states that "Everyone who works has the right to just and favourable remuneration ensuring.... an existence worthy of human dignity".
Low pay is defined in relation to the level of earnings in a country and the income necessary to provide for a household's basic needs.
The Council of Europe defines this 'decency threshold' as the equivalent of sixty-eight per cent of the average (mean) earnings of all full-time workers.
This definition is backed up by key studies into poverty, such as Townsend's Poverty in the UK, showing that families of workers earning less than two-thirds average earnings suffer severe poverty and deprivation.
(Calculations are based on New Earnings Survey 2000.)
Theatre profits
The biggest West End theatre owners have paid out record dividends. In the 18 months up to June 2000 shareholders at Really Useful Theatres Limited - formerly Stoll Moss - took out dividends totalling £13million.
And on top of any dividend share out directors were paid £602,000 in 2000, up on £316,000 in 1998. The highest paid director received £312,00 in 1999.
The second largest theatre owner - Ambassador Theatre Group Limited - made profits of nearly £12.5million.
In the year ending September 2000 Ambassador directors' emoluments totalled £288,581 - up on the 1999 figure of £144,808. The highest paid director took out £115,808 in 2000 - an increase on the 1999 figure of £71,637.
ATG's gross profits in 2000 totalled £12,433,025 - an increase on the 1999 figure of £4,236,549.
The theatre owning subsidiary Delfont Mackintosh Theatres Limited - with just two venues - made £6,122,949 gross profit up to 31 March 2000 compared to £1,975,370 in the period up to 31 October 1998.
Producing and managing theatrical shows is equally profitable. Cameron Mackintosh Limited group operating profits increased from £6,682,842 in 1999 to £9,609,502 in 2000.
Producers Bill Kenwright Limited increased its operating profit - the profit generated by the main operations of the company made by the bulk of the workforce - from £467,453 in 1999 to £2,579,617 in 2000.
(Sources: Latest available published company accounts)