What is a Letter of Dispensation?
DISCLAIMER: This post is not to be interpreted as legal advice. Please note that the content of this post relates to I.A.T.S.E. Local 849 and may be specific to the contract and/or jurisdiction of the local. This content may not be the same for every jurisdiction or every union or local - please check with your local union for information about local procedures.
February 2025
A Letter of Dispensation (LoD) is a simple agreement between the Union and a Production. It sets out some agreed-to minimum working conditions and is sometimes called a Members-only Agreement. It is most often used with low-budget, indie productions that plan to have only a few Union members engaged.
Several factors contribute to the Union’s determination of eligibility for a Letter of Dispensation. Budget is the primary consideration, but other things like past experiences, relationship with and reputation of the filmmakers, number of Union members they plan to hire (and in what positions), length and type of project and shooting locations all form part of the decision. Frequently, there is a conversation with the other local labour unions (IA 667, DGC & ACTRA).
The basics of a Letter of Dispensation:
- Applies only to full IATSE 849 members working on the project, working in Local 849 roles
- Usually, a 2-page document (while IATSE Local 849’s Standard Agreement is 50+ pages long)
- Typically requires some contribution to the Local 849 pension and/or medical plan
- Requires proof of provincial or third-party workplace injury insurance and adherence to Provincial Labour Standards and Health & Safety Guidelines
- Requires that Union receive call sheets and allows Union to appoint a crew rep as a liaison
What a Letter of Dispensation typically doesn’t cover:
- Meal penalties, premium days (extra pay for weekend work), minimum staffing
- May not compensate for travel or mileage if shooting out of the zone
- May not contribute towards insurable EI hours or CPP
- Nearly always compensates on a flat rate rather than an hourly rate
- Any disputes that might arise are not 'grievable' by the Union (see What is a Grievance)
What’s the point of a Letter of Dispensation?
The opening sentence of a Local 849 dispensation letter helps explain: “It is the intent of the Union to support and acknowledge Producers who seek to create lower budget productions and offer valuable training opportunities for novice technicians, but also utilize the skills of more experienced crew in the Screen Industries in Maritime Canada … for the employment and upgrade of our Members.”
Sometimes, the low-budget productions of today are the big-budget productions of tomorrow. These shows provide training opportunities for novice crew who could eventually be fellow Union members. They also frequently offer a chance for our members to upgrade to higher positions.
Why not just sign a full contract?
An LoD is often the first experience low-budget indie filmmakers have with the Union. They have neither the experience nor the staffing required to administer, monitor and schedule for a full contract. A fully negotiated contract can add 20% or more to labour costs through fringes, which most low-budget shows cannot fund. A Letter of Dispensation introduces the Union to these up-and-coming producers and directors; it helps them understand that working with the Union is not as scary as they might think.
A production’s signing of a Letter of Dispensation acts like an invisible safety net for the crew. It’s like a handshake between the show and the Union that says the producer acknowledges our jurisdiction. But it also enables the Union to keep a watchful eye without being too imposing.
Sincerely,
Shelley Bibby
Business Agent, I.A.T.S.E. Local 849