HOLLYWOOD (Variety) - The Screen Actors Guild (SAG) has admitted it is too slow delivering residual checks to members, with delays stretching to more than three months.þþThe issue has been a long-running headache for the guild, which took the extraordinary step a year ago of apologizing for the delays and promising to improve performance. The problem persists in the face of an embarrassing Towers Perrin consultants report, issued in 2000, which described the guild's operations as ``organized chaos.''þþ``We recognize that improvements need to be made in processing of residuals,'' SAG spokeswoman Ilyanne Kichaven said. ``It's a major priority within our current reorganization, which is focused on improving efficiency of our operations through streamlining and consolidation.''þþResiduals are vital for many of SAG's 98,000 members, most of whom are unemployed. Payouts last year totaled $606.6 million last year, or 37% of the total compensation subject to pension and health contributions. Commercial residuals were the largest category, with $302.6 million, followed by film with $160.9 million and TV with $142.9 million. Delays can be problematic since issuers may impose a 60-day or 90-day limit on honoring checks.þþSAG executives insist they're working on fixing the problem by spending $4.4 million to upgrade internal computer systems and seeking a new residuals chief.þ
Source: NY Times
