The current collective bargaining agreements between the advertising industry and unions for performers who appear in commercials -- the Screen Actors Guild and the American Federation of Television and Radio Artists – are set to expire on March 31, 2012. The unions have , proposed a one-year extension of the Commercials Contracts, from April 1, 2012, through March 31, 2013, during which time all rates, terms and conditions from the 2009 – 2012 Commercials Contracts would remain in effect. Wages and Pension and Health/Health and Retirement contributions would remain at current levels, while the Pension and Health/Health and Retirement contribution cap in the 2009-2012 Commercials Contracts would take effect, as negotiated, on January 1, 2012.
The 4A’s has indicated that the Joint Policy Committee on Talent Union Relations (JPC) of the 4A’s and the Association of National Advertisers regards the extension as favorable to the industry because it freezes rates, while at the same time does not delay the implementation of the contribution cap and allows an additional year in which to evaluate the results of the Gross Rating Points compensation model pilot that was put into place in the 2009-2012 contracts. The JPC intends to agree to the proposed extension.