On April 6, 2013, after weeks of negotiations that began on Feb. 14, 2013, the ANA (Association of National Advertisers) and 4A’s (American Association of Advertising Agencies) Joint Policy Committee on Broadcast Talent Union Relations (“JPC”) and SAG-AFTRA have reached a tentative deal on new contracts covering actors and other performers who work in television and radio commercials. The JPC is the multi-employer bargaining group that represents the advertising industry. SAG-AFTRA is the recently merged Screen Actors Guild and American Federation of Television and Radio Artists that represents more than 165,000 actors, announcers, broadcast journalists, dancers, DJs, news writers, news editors, program hosts, puppeteers, recording artists, singers, stunt performers, voiceover artists and other entertainment and media professionals.
The deal terms are subject to approval and will be presented to the SAG-AFTRA National Board of Directors at its April 20-21 meeting. The new three-year commercials contracts (the “Contracts”) will replace the current Screen Actors Guild Television Recorded Commercials agreement and the AFTRA Radio Recorded Commercials agreement that were both set to expire on March 31, 2013 but which were extended through April 7, 2013.
Major deal points in the Contracts are as follows:
- Term: 3 years from April 1, 2013 through March 31, 2016;
- Compensation Rate Increases: 6% increase on all wages on which P&H is paid;
- Pension & Health: P&H contribution rate increases from 15.5% to 16.8%;
- User Generated Content/Crowd-Sourced Commercial Contests: producers may display UGC/Crowd-sourced commercials on the Internet during the contest period without triggering the application of the Contracts, however, once contest-winning (or non-winning) entries are exhibited in any media after the expiration of the contest period, the commercial will be subject to the rates, terms and conditions of the Contracts;
- Public Recording for “Made Fors”: producers may film or record people in public without triggering the application of the Contracts (provided such people are not scripted or cast) at “Live Events”, “Man on the Street Commercials” and “Hidden Camera Commercials” provided the producer notifies SAG-AFTRA and provided the use is limited to the Internet or New Media. If a commercial produced pursuant to this waiver is used in media other than the Internet or New Media, any principal appearing in such commercial must be compensated in accordance with the Contract;
- Internet and/or New Media “Move Overs”: rates increase from 133% to 150% of the session fee for an 8 week cycle, and from 350% to 400% of the session fee for a one year cycle; and
- Internet and/or New Media “Made Fors” Rates: rates remain at 133% for an 8 week cycle, and 350% for a one year cycle; and the maximum period of use remains at 21 months.