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PREPARING FOR THE FUTURE

Nothing in the entertainment industry stands still for long. This dynamic busi-
ness continues to expand and innovate, driven by demographic shifts, tech-
nological advances and economic mandates. We believe Contract Services’
progress and investments made in 2016, and in previous years, have posi-
tioned us to meet growing industry demands and remain a valuable industry
partner for the future.

Specifically, we are prepared to efficiently and economically address a variety of
upcoming requirements that will create even greater demands on our services.

Industry-Wide Refresher Training

As referenced earlier in this report, contractually mandated Refresher Training
began in July 2016 and will grow dramatically. Over the next 12 years, it is
expected to account for 1.5 million hours of Safety Pass training, filling nearly
630,000 seats.

Industry-Wide Harassment Prevention and Reporting Training

Producers and industry unions have agreed to new harassment prevention
and reporting training, which will meet the standards of California and federal
law and ensure safe, reliable work environments for production crews, while
reducing the number of incidents to which employers must respond. To fulfill
the governmental requirements and agreement, Contract Services is develop-
ing online training courses to be delivered in 2-hour and 1-hour formats (for
supervisors and non-supervisors, respectively) to 40,000 individuals over the
next two years. Based upon negotiated requirements, we anticipate a com-
bined 60,000 hours of training will be completed on a repeating two-year cycle.

Additional Collective Bargaining Agreement Requirements

In recent contract negotiations, Producers and industry unions agreed to new
requirements, which Contract Services will perform on behalf of the parties.
One example is a new requirement for background checks of Studio Teachers.

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