McGraw Hill Publisher charging illustrators a fee to get paid
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@davido No, this is really insightful!
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@davido I can certainly understand how that would benefit McGraw Hill. But it's still really gross for us
As the article points out, since they're using freelancers they already don't have to pay for employee benefits, insurance, vacations, pensions, mat leave, etc. So on top of that not even wanting to pay the freaking invoicing system and being more than willing to have their freelancers, who are vulnerable workers with little rights yet absolutely indispensable to the creation of their products, take on that burden instead, feels just slimy, greedy, and insulting. -
@NessIllustration I totally concur. I don't see how it makes sense for the illustration industry.
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So you do the work and then the boss says they won't pay you unless you pay them a fee? Sounds like extortion. Here's a few definitions:
"Extortion is the practice of obtaining benefit through coercion. In most jurisdictions it is likely to constitute a criminal offense;"
Financial crimes that involve fraud, especially corporate fraud, mortgage fraud, or other investment fraud schemes where significant dollar losses have occurred, including those impacting you or your place of work
This is a type of corporate fraud copied from the FBI website:
Non-payment of funds: Fraud occurring when goods and services are shipped or rendered but payment for them is never received.
If you think any of this applies to MGH, you can always call the FBI and ask.
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@Kim-Hunter This is an interesting take. I imagine the response from McGH would be: "You agreed to this in the contract". I would be very surprised if this payment method isn't specified in the contract. Perhaps someone with first hand experience can clarify this?
The next question to be raised is: Given the size of McGH does a children's book freelancer have a reasonable choice NOT to work with McGH?
I would say "Yes. A freelance illustrator does have the choice not to work with McGH" -- as I don't happen to work with McGH.
But I can easily see other illustrators saying "No. I HAVE to work with McGH. They are my biggest client. Therefore I HAVE to agree to this new fee." This of course is a slippery slope because agreeing to this new company practice makes it easier for other publishers to adopt the same practice, or for McGH to pass on yet another operational cost to freelance illustrators in the future.
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I think it could be argued that a business does not have a right to pass on their cost of doing business to an entity that is not their customer. The freelancer is not their customer. MGH is the customer of the freelancer. This would be like me demanding a 2.2% rebate before I hand my crumpled dollars to the cashier and, if they didn't comply, walking out the door with a full shopping cart without paying a cent.
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As a freelancer it'd be tempting to return the contract with a change charging McGraw Hill my OWN administrative fee, bringing the contract back up to the original amount.
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@Braden-Hallett You could absolutely do that!
BUT both you and McGH would have to sign (i.e. agree to) the change otherwise it's not binding. -
@davidhohn Yeah, I'm not arguing that it's a good thing by any means. I was just trying to get an idea of where it fit in in the scheme of service charges and knew about the 3% because my sister owned a gift store.
It would probably take a really famous illustrator going elsewhere to get their attention, or like you said, maybe they would listen if all of us said something together. It certainly does feel like a huge power imbalance, and as someone still trying to break in, it's yet one more hurdle in a field that already has so many. We may argue that this is capitalistic freedom, but when a company is so big that it wields disproportionate power (and most publishers are now part of conglomerates), it hardly feels like a free choice.
And it's not just publishers. This conglomerating thing and the getting nibbled to death by fees thing are everywhere right now.
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@davidhohn said in McGraw Hill Publisher charging illustrators a fee to get paid:
@Braden-Hallett You could absolutely do that!
BUT both you and McGH would have to sign (i.e. agree to) the change otherwise it's not binding.Oh for sure! I don't think I'd ever expect them to sign it (unless the sign it accidentally). This is just another way to say to them 'I don't like this'.
If I say "I don't like this clause" they'll laugh and say "well then lick my unmentionables first illustrator of a long list! You'll sign it and like it or we'll go with the next person!" Well, they probably won't say THAT, they'll be perfectly polite, but still!
But If I say "I made some changes. Please review the contract" then there MIGHT be a little bit of back and forth where I get to tell them the administrative fee is predatory garbage. Honestly enough though, come to think of it, they'll STILL probably just chortle as they toss the contract in the shredder and give me the boot out the door.
Unless they don't read the change and sign it anyway, in which case they'll probably ignore MY 'administrative fee' and it'll be an uphill battle to get my two point whatever percent back... at which point I'll never be able to work for them again, even if I'm interested.
So I suppose in the end there wouldn't really be much point in doing any of this, but for some reason it'd feel satisfying? If they're gonna charge an administrative fee I'm gonna make 'em work fer it, gosh darnit!
Seriously though, that fee is bull*&^%.
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@Braden-Hallett I see where you are coming from now!
It's a little passive aggressive but fundamentally I'm on board for it.
Heres why:
It will make things a bit harder and more difficult for the AD's you are actually in contact with. Now, these are fundamentally good people who don't make these kinds of policies. They do have contact with those policy makers though! And if word gets around that it's this new payment method that is sucking up time negotiating AND that their preferred illustrator said "I'm sorry but I can't agree to this project" BECAUSE of this new company policy -- well that has a cumulative effect.
The people McGH who are perfectly fine with a fee like this aren't the ones working directly with the freelance illustrators and authors.
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@LauraA I knew you weren't arguing in favor. And I could see how a comparison to what is currently "normal" could be made to this new McGH policy/fee.
Your post simply encouraged me clarify my own thoughts as to why this both "feels" and is fundamentally different.
I apologize if it seemed I was making you advocate for a position you don't hold.
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@davidhohn said in McGraw Hill Publisher charging illustrators a fee to get paid:
It's a little passive aggressive
Oh, it's COMPLETELY passive aggressive
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@davidhohn No problem! I was doing the same.
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Here's a lawsuit against them from 2012, Another class action lawsuit was filed in January 2021 by authors over unpaid royalties after MGH re-defined electronic books.
https://www.courthousenews.com/author-says-mcgraw-hill-cheats-on-royalties/
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@Lee-White posted this to FB today. I'll be signing this petition. Hope others will join.
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@davidhohn Oh I'm so in. I don't have a big following but I can reach out to some kidlit peeps on Twitter too.
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@BradAYoo Every person you discuss this with makes a difference!
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Add an admin charge to your invoice - 20% processing fee to deal with their crap. Ridiculous.
