SAG-AFTRA members ratified their new commercials contracts by
a vote of 96 percent to 4 percent, the union announced Friday.
Ratification was expected, as both the commercials negotiating committee
and the union’s national board unanimously approved the contracts, and
no opposition had developed.
All members in good standing as of April 1, 2013 – about 130,000,
according to the union –were eligible to vote. That number reflects
about 20 percent of members whose dues were delinquent, a percentage
that was similar within SAG before the union merged with AFTRA. Thirteen
percent returned ballots, 97 percent electronically.
“Not only are these the first major contracts negotiated as SAG-AFTRA,” said union co-president
Roberta Reardon, “the contracts’ provisions provide for great improvements in the lives of our members and their families.”
Union co-president
Ken Howard said “The commercials
agreements represent important gains for tens of thousands of our
members across the country and address longstanding concerns which bring
the commercials agreements up to date in a variety of areas.”
“These contracts represent solid improvements and demonstrate the
value of the collaborative relationship we’ve developed with the
[industry negotiators] ,” said SAG-AFTRA national executive director
David White.
The agreements – one for television and one for radio – are effective retroactive to April 1, and runs through June 30, 2016.
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According to the union, the contracts will result in $238 million in
wage increases and other payments for all categories of performers,
improvements in cable use fees, increases in payments for work on the
Internet and new media platforms, and an increase in the late payment
fee. The union provided pdf summaries of the
television commercials and
radio commercials contracts.
Key details of the three year deal include the following:
* Wages: One-time 6 percent increase. The increase
is effective over the term of the contract (April 1, 2013 – March 31,
2016) and is mathematically equivalent to 2.9% annual increases. That
compares with the 2 percent annual increases that have become customary
in Hollywood labor deals.
* Spanish Language Commercials: Program fees increase by 10 percent and wild spot rates by 5 percent, in addition to the general wage increase.
* Pension and Health: The new P&H rate is 16.8 percent, up from 15.5 percent.
* Meals: Meal allowances increase by about 1/3 to 1/2, and the travel per diem by about 15 percent.
* Internet and New Media: Usage cycles for
commercials made for the Internet or new media, or for commercials moved
over from traditional media, may be either eight weeks or one year.
Cycles must be consecutive unless holding fees are paid, and the maximum
period that commercials may be used is 21 months from the date the
commercial was shot. Compensation rates are unchanged for commercials
made for the Internet or new media (133 percent of the applicable
session fee for eight-week cycles and 350 percent for one-year cycles),
but are increased for move-over commercials (now 150 percent and 400
percent).
* User-Generated or Crowd-Sourced Commercials: The
new commercials contract permits user-generated or crowd-sourced
commercials as entries to an Internet-based contest. No contract
provisions (such as required fees) will apply to such commercials when
they are exhibited on the Internet during the contest, but if exhibited
thereafter, the provisions of the contract will apply. Non-winning
contest entries must be removed from the Internet.
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* Commercials with Non-Actors: The new commercials
contract permits Internet commercials that record people in public,
including at live events or interviewed at public venues or on the
street, or via a hidden camera. So long as the dialogue is not scripted
and the people are not cast for the commercial, the contract provisions
will not apply.
* Cable: The cable cap increases from 2,000 units to
3,000. This increases the actor’s potential compensation for
commercials that air on cable.
* Extras: Extras will now only be entitled to
receive the agent’s commission as part of their fee if the extra has an
agent and the agent procured the job for the extra.
* Data Processing: By March 31, 2014, all
commercials must be use Ad-ID as the commercial identifier, and all
talent payroll reports must be filed electronically.
* Waivers: Various waivers are now considered to be part of the contract, and one or two waivers have been added.
* Gross Rating Points: The so-called GRP compensation model, a goal of the industry, will continue to be studied.
* Other Provisions: According to the source, there are roughly two dozen additional changes that were negotiated.
Formal negotiations between the 34-member (26 seated members and 8
alternates) SAG-AFTRA Negotiating Committee and the Industry began
February 14 and concluded April 6, at 1:49 a.m. EDT, in New York.
Balloting began May 1.
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This is the first national contract referendum for SAG-AFTRA. Paper
ballots were available on request,, but the default process was greener
this year than in the past: postcards were sent, rather than whole
ballot packets; the latter were available online. Balloting was online,
unless the member requested a paper ballot.
In addition, the union told The Hollywood Reporter, members were
advised of the ballot process via several e-mail blasts to all eligible
voters, messaging through social media, automated telephone calls, and
prominent placement on the SAG-AFTRA website.
The advertising industry was represented by
Douglas J. Wood,
Stacy Marcus, and
David Weissman with Reed Smith LLP,
Linda Bennett with Saatchi & Saatchi,
Kim Stevens with Arnold Worldwide, and
Kathleen Quinn with the American Association of Advertising Agencies (known as the 4A’s).
SAG-AFTRA was represented by co-president and negotiating committee national chair
Roberta Reardon, national executive director and chief negotiator
David White, Negotiating Committee Vice Chairs
Sue-Anne Morrow, Allen Lulu, Ilyssa Fradin, and
David Hartley Margolin, co-lead negotiators
Ray Rodriguez and
Mathis Dunn, and Senior Advisor
John McGuire.
In separate news, IATSE announced late last week that it had reached a
new three-year commercials contract. The deal, whose terms were not
released, commences October 1, 2013.
IATSE’s deal, like that of the DGA, is with commercial producers (the
Association of Independent Commercial Producers (AICP)), whereas
SAG-AFTRA’s is negotiated with the advertising agencies and national
advertisers (the Joint Policy Committee of the ANA-AAAA, i.e.,
Association of National Advertisers, and American Association of
Advertising Agencies).
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