SAG nat'l board acts against CEO Hessinger
SAG acts against CEO Hessinger, three other execs
Oct 24, 2005
SAG's national board fired union CEO Greg Hessinger on Sunday, along with three executives he recently hired, in a sweeping rebuke of the appointed leadership.
"The recent election made clear that our membership expects concrete results, particularly in our collective bargaining and our nationwide organizing efforts," SAG president Alan Rosenberg said. "After much consideration and debate, the national board has decided to make a change in our staff leadership that will allow us to focus our resources more intensely in these areas."
Hessinger said he was worried that his political opponents on the board intended to take the legal position that they were not obligated to pay out the remainder of his four-year contract, worth an estimated $1.6 million.
Hessinger said the board was well within its rights to choose its own CEO but did not have the authority to ignore a binding contract.
"When I took this job, I made a commitment to work on behalf of Screen Actors Guild members and was honored to do so. In turn, the SAG board made a contractual commitment to me,"Hessinger said. "SAG members, who depend upon the enforcement of their own contractual protections for their very livelihood, should understand the sanctity of a contract. If their elected leaders choose not to do so, I will take all steps necessary to enforce my rights."
A committee will be formed to find Hessinger's replacement; finance chief Peter Frank will serve as the position on an interim basis.
In addition to Hessinger, the board -- meeting in executive session Sunday morning -- fired the two former AFTRA executives that Hessinger had hired as well as JoAnne Kessler, the advertising industry veteran he brought aboard to help with the upcoming commercials contract negotiations.
Former AFTRA execs Rebecca Rhine and John Russum were hired to strengthen organizing efforts and strategic planning, respectively. They had been colleagues of Hessinger's at AFTRA, where he was the national executive director for five years before joining SAG in May.
"This is just purely politics," said Rhine, adding that she was never questioned about her views or goals before being fired – two days after she left AFTRA.
All three of these hires sparked outrage among the newly elected leadership because they had no say in the matter.
The moves come just one month after the powerful, policy-making board was taken over by the political faction that had long been wary of Hessinger because he was the handpicked successor of former national executive director/CEO Bob Pisano.
The firings took place at the board's first meeting since the sweeping election victory of the MembershipFirst party.
A group of national board members led by N.Y president and second national vp Paul Christie, opposed the 54-46 vote. Christie said the move was "contrary to assurances Alan Rosenberg made during his campaign."
The union's political divide was on full display Sunday, with representatives of the regional branches and New York walking out of the meeting in protest of the moves by their foes in MembershipFirst.
An almost identical leadership change took place at WGA West last month as their newly elected board quickly fired executive director John McLean, replacing him on an interim basis with organizing director David Young.
The new leadership of WGAW and SAG are closely aligned in their desire to take a more confrontational stance with the industry in order to get better contract terms, including DVD residuals.
At SAG, MembershipFirst frequently said that Pisano was too eager to compromise with the industry; they were likewise enraged with many of Pisano's policies, including a failed merger attempt with AFTRA in July 2003, when Hessinger was its leader.
Last week, Hessinger again expressed his desire that SAG merge with AFTRA, which his opponents continue to oppose.
Hessinger's firing comes as he was preparing to lead SAG's negotiations on a basic cable contract and, more significantly, talks on a new commercials contract next year. SAG-AFTRA went out on strike for six months during the commercials negotiations of 2000, when MembershipFirst's predecessor party controlled SAG.
Hessinger took over for Pisano just six months ago and initially tried to resolve the factional fighting that has divided the union for years.
The relationship quickly grew testy over a contract with leading video game makers, principally because some in the MembershipFirst camp wanted to strike in order to establish residuals for voice-over and other gaming talent. Hessinger, as lead negotiator, instead secured a significant pay raise and other gains that were approved by 81.2% of the members.
For the opponents, the tide turned a month ago when they virtually swept the annual election. In addition to gaining the presidency for Rosenberg, and electing secretary-treasurer Connie Stevens, MembershipFirst added several board seats, giving them the policy-making power that had eluded them for years.
While well-respected within union and industry circles, Hessinger, who turns 40 today, knew there was a strong possibility that he could be fired by his opponents. As a precaution, he held off on moving his family from New Jersey to Los Angeles, where he had taken up residence as SAG's leader.
"The recent election made clear that our membership expects concrete results, particularly in our collective bargaining and our nationwide organizing efforts," SAG president Alan Rosenberg said. "After much consideration and debate, the national board has decided to make a change in our staff leadership that will allow us to focus our resources more intensely in these areas."
Hessinger said he was worried that his political opponents on the board intended to take the legal position that they were not obligated to pay out the remainder of his four-year contract, worth an estimated $1.6 million.
Hessinger said the board was well within its rights to choose its own CEO but did not have the authority to ignore a binding contract.
"When I took this job, I made a commitment to work on behalf of Screen Actors Guild members and was honored to do so. In turn, the SAG board made a contractual commitment to me,"Hessinger said. "SAG members, who depend upon the enforcement of their own contractual protections for their very livelihood, should understand the sanctity of a contract. If their elected leaders choose not to do so, I will take all steps necessary to enforce my rights."
A committee will be formed to find Hessinger's replacement; finance chief Peter Frank will serve as the position on an interim basis.
In addition to Hessinger, the board -- meeting in executive session Sunday morning -- fired the two former AFTRA executives that Hessinger had hired as well as JoAnne Kessler, the advertising industry veteran he brought aboard to help with the upcoming commercials contract negotiations.
Former AFTRA execs Rebecca Rhine and John Russum were hired to strengthen organizing efforts and strategic planning, respectively. They had been colleagues of Hessinger's at AFTRA, where he was the national executive director for five years before joining SAG in May.
"This is just purely politics," said Rhine, adding that she was never questioned about her views or goals before being fired – two days after she left AFTRA.
All three of these hires sparked outrage among the newly elected leadership because they had no say in the matter.
The moves come just one month after the powerful, policy-making board was taken over by the political faction that had long been wary of Hessinger because he was the handpicked successor of former national executive director/CEO Bob Pisano.
The firings took place at the board's first meeting since the sweeping election victory of the MembershipFirst party.
A group of national board members led by N.Y president and second national vp Paul Christie, opposed the 54-46 vote. Christie said the move was "contrary to assurances Alan Rosenberg made during his campaign."
The union's political divide was on full display Sunday, with representatives of the regional branches and New York walking out of the meeting in protest of the moves by their foes in MembershipFirst.
An almost identical leadership change took place at WGA West last month as their newly elected board quickly fired executive director John McLean, replacing him on an interim basis with organizing director David Young.
The new leadership of WGAW and SAG are closely aligned in their desire to take a more confrontational stance with the industry in order to get better contract terms, including DVD residuals.
At SAG, MembershipFirst frequently said that Pisano was too eager to compromise with the industry; they were likewise enraged with many of Pisano's policies, including a failed merger attempt with AFTRA in July 2003, when Hessinger was its leader.
Last week, Hessinger again expressed his desire that SAG merge with AFTRA, which his opponents continue to oppose.
Hessinger's firing comes as he was preparing to lead SAG's negotiations on a basic cable contract and, more significantly, talks on a new commercials contract next year. SAG-AFTRA went out on strike for six months during the commercials negotiations of 2000, when MembershipFirst's predecessor party controlled SAG.
Hessinger took over for Pisano just six months ago and initially tried to resolve the factional fighting that has divided the union for years.
The relationship quickly grew testy over a contract with leading video game makers, principally because some in the MembershipFirst camp wanted to strike in order to establish residuals for voice-over and other gaming talent. Hessinger, as lead negotiator, instead secured a significant pay raise and other gains that were approved by 81.2% of the members.
For the opponents, the tide turned a month ago when they virtually swept the annual election. In addition to gaining the presidency for Rosenberg, and electing secretary-treasurer Connie Stevens, MembershipFirst added several board seats, giving them the policy-making power that had eluded them for years.
While well-respected within union and industry circles, Hessinger, who turns 40 today, knew there was a strong possibility that he could be fired by his opponents. As a precaution, he held off on moving his family from New Jersey to Los Angeles, where he had taken up residence as SAG's leader.
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