I don't know where your "here" is!!
But I'm European, even though I live in the US.....
It pretty much the same everywhere. If you're a really well known engineer you can sometimes negotiate points, but this really depends on how much an artist wants to work with a certain engineer. I'm a producer as well as engineer.
I don't think the system is fair as it does not encourage full participation and max effort by engineers. On top of that, a good engineer often makes a huge contribution to a project.
In our production company we do things slightly different, in a way that values maximum effort and input of everyone concerned. Our system features:
- The session musicians we use get travel expenditure & direct costs only. Upon the general release of a project they get the equivalent of union scale payment for the time / work they contributed.
- Engineers receive a daily / weekly payment in the region of $600 p. week.
- Whereass normally points are split, dependant on contractual agreements between a record company / production company / producer / artist, we introduced a further point allocation. This allocation is split between all who contributed to a projects success, depending on the level of the contribution made. This is maily for the benefit of the musicians and engineer(s), but can include others such as a photographer, video producer / crew, etc.
Payment to all "in the kitty" kicks in under a producer's agreement. meaning all those involved get paid based on sales, already before advances have been recouped, unlike the artist, who gets paid royaltees only once all expenses have been recovered. (but in the meantime has often been paid an advance by a record company).
Obviously any artist we work with has to agree to this beforehand, but for us its not a choice, its a condition. We have found that we attract, without any question, some of the best musicians on the planet with this system, people who are aware that their input makes a big difference.
The result is that, especially our new, artists get to work with the best people, and everyone is totally committed to making sure our artists succeed, they will work their asses off, as its their own money they are working for, the more success, the more pay.
Obviously its a good thing for any engineer as well. Record a hit and you'll earn big bucks!! Apart from that, I think its just a much fairer system.