Debate Fact Check for Gagliardi
Please watch the recent debate between Local 802 Presidential candidates Adam Krauthamer and Tino Gagliardi here. Below we fact check some of Gagliardi’s claims from the debate.
Tino Gagliardi: Tino said he went to all those international conferences to pursue foreign collectives who collect money for foreign terrestrial radio play and who do not currently pay 802 musicians a fair share.
The facts: The task of collecting foreign royalties falls not to Local 802, but rather to the AFM & SAG-AFTRA Intellectual Property Rights Distribution Fund. The AFM & SAG-AFTRA organization does not need Tino Gagliardi to be its worldwide ambassador to help it collect foreign royalties for musicians. It is a large organization with a substantial lobbying, legal, enforcement staff. On top of those resources, the AFM also devotes time and attention to the issue.
Tino Gagliardi: “You guys deserve better than this. What’s coming out of Adam’s mouth is just provably wrong. Local 802 has not suffered a 15% lost in membership. Local 802 has suffered a 6.4% loss in membership and that’s mostly due to attrition… 15% is what the AFM has lost. We’re doing better than our parent union.”
The facts: Mr. Gagliardi became President of Local 802 in January 2010. At that time Local 802 had 8422 members. Today it has 7,163 members. That is a decline of 15%.
The facts: Defending a 6.4% drop as “due to attrition” is a poor excuse and highlights the Members Party failure on this front.
Directors of Organizing
Tino Gagliardi: “We have not gone through 8 organizing directors, we have had six.”
The facts: As to Organizing Directors, here are the eight who served under Mr. Gagliardi:
Jim Hannon: Resigned 2010
Mike Donovan: Resigned Sept 2011
Leon Bell: Resigned 2012
Bennett Baruch: Resigned 2013
George Kimball: Terminated July 2013
Adam Witkowski: Resigned 2014
Maggie Russell-Brown: Resigned 2017
Joy Winkler: 2018-present
Adam Witkowski was acting Director of Organizing while a search was on for a permanent replacement.
For some reason, Gagliardi thinks this doesn’t count.
AFM Pension Fund
Tino Gagliardi: “The pension fund’s problems pre-date my presence on the board.”
Fact check: Gagliardi joined the pension board in 2010. The Funded Ratio in 2010 was 94.5%. In 2011 it was 91.7%. Today it is 63% and dropping. The mismanagement occurred since 2009.
The overwhelming majority of pension funds recovered from the financial crisis. According to a recent study by Milliman, the funded percentage of all multiemployer plans have completely recovered from the financial crisis and are back to their pre-financial crisis levels with funded ratios averaging 81%. Not ours.
Tino Gagliardi: Pension’s problems caused by “low ratio of workers to retirees.”
The facts: The AFM-EPF’s ratio of 42% active participants to 58% inactive participants is quite normal for healthy multiemployer pension plans.
Tino Gagliardi: Regarding the pension, there will be “some cuts to current benefits.”
The facts: Our pensions are about to be cut by as much as 30%. The Funded Ratio of our pension plan has fallen to 63%, which means the plan has only 63 cents for every $1.00 of pension obligations it owes in the future. The trustees are already in discussions with the US Treasury about how best to frame their cut application.
Tino Gagliardi: Broadway wages are 26% higher today than they were in 2009.
The facts: Broadway grosses are up 66% since 2009.
 According to their website, it is “a collective rights management organization established by the AFM and SAG-AFTRA to collect and distribute royalties to non-featured performers, including vocalists and musicians. Headquartered in Los Angeles, California and with approximately 70 staff, the Fund collects and distributes approximately $45 million annually on behalf of artists, from royalties paid on domestic non-interactive digital use of sound recordings, as well as for use in foreign territories subject to reciprocal agreements with collective management organizations in those territories.”
 Labor Organization Annual Report, Form LM-2, filed by Local 802, 2010 and 2017. Available at dol.gov.
 Milliman Fall 2018 Multiemployer Pension Funding Study
 According to a recent study by Milliman (the actuary for the AFM-EPF), the ratio of 42% actives to 58% inactives is the average ratio in Green Zone plans (that is, plans that are healthy). According to Segal, another large actuarial firm, critical and declining plans (unhealthy ones) have 87% inactives and all other plans (healthier ones) have 63% inactives