Monday, May 29, 2006

The freelancer's -- and the industry's -- challenge

In the recently released Professional Writers Association of Canada (PWAC) study of the freelance writing sector in Canada, (available from pwac.ca) it was interesting to find out that full-time freelancers not only earn higher rates, but (not surprisingly) take home more money. (This has to be put in the context that, as reported in an earlier post, that freelancers generally have seen their purchasing power erode by 26% since 1995.)

Between 2002 and 2005, for people for whom writing is their principal source of income, the highest rate-per-word earned rose from 97 cents to $1.12. For those for whom writing was not their principal source of income, the highest rates increased from 68 cents to 74 cents over the same period.

Full-timers earned $29,235 pre-tax in 2005, an increase of 13.6% from 2002; part-timers saw their total pre-tax earnings decline from $18,985 to $17,310 (-8.8%) over the same period.*

"The numbers indicate that to be most successful in this difficult profession, writers need to pursue their writing on a full-time basis. Full-time writing exposes writers to the ongoing improvement of both their skill and their business acumen, and avoids the distractions that part-time writers often experience," said the report.

According to the latest Statscan data, freelance fees total less than 5% of the total costs of a consumer magazines and about 5.6% of trade/farm titles. Freelance costs are less than a quarter of the costs of paying staff. Without freelancers, many magazines could not function. It surely cannot be argued that is is only by underpaying the most vulnerable that some magazines are making a profit.

Realistic rates for freelancers is a significant issue and one of the biggest challenges facing this industry. As one senior editor said: we hold down rates, because we can. Publishers can do it because there has always been a steady supply of young hopefuls willing to work for peanuts. But if the payment erosion continues in the direction demonstrated by the PWAC research, even those young writers will likely have second thoughts.

An across the board 20% increase in freelance rates, right now, would cost the industry about a 1% increase in its total costs. And the average would still be something less than $1 a word.

*For sake of comparison, an after-tax freelance income of $25,000 works out to a take-home for a full-time freelancer of about $480 a week. That was about what a successful Toronto freelancer could expect to earn in 1977; 30 years ago, $480 went much, much farther.

3 Comments:

Anonymous Anonymous said...

This precisely conforms to what I'm seeing as a younger freelancer these days, which is why I'm in the process of leaving the business. Every year the rates get a little worse, and every year the real features give up a little more space to packaged stuff. Suffering for art's sake is one thing, but suffering for charts about $5,000 barbecues? Life's too short.

9:06 pm  
Anonymous Anonymous said...

All this is why we've created the Canadian Freelance Union. As a local of the CEP we hope to change the long slide in rates, and the ever-increasing demand for more rights.

Publishers squeeze because they can. Since 1979 there has been a 160% drop in freelancers' real income, when adjusted for inflation. As freelancers we have tried everything from gentle persuasion, to negotiation to suing -- nothing has changed publishers' behaviour. It has only got worse.

So we do what all abused workers have done in the past. We band together as part of a union to take collective action.

Please join us by signing up at: www.cepmedia.ca/freelance. Click on "Freelance Campaign" to see what's been happening, or better still, click on "Join Now" to help us reverse these trends.

Michael OReilly, President
Canadian Freelance Union (CFU)
freelance@cep.ca

11:13 pm  
Anonymous Anonymous said...

I am an underpaid, struggling, freelance writer as well as a strong supporter of market economy. I know that the top writers get paid well - and all that the rest of us need to do, is to become better writers and better at the business of writing. No, I don't support unions of any kind.
Barbara Molin

12:04 pm  

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