SAG-AFTRA Board Approves Commercials Contracts

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At its national meeting held April 20-21, 2013 in Los Angeles, California, SAG-AFTRA's national board of directors approved the recently negotiated television and radio commercials contracts. The tentative deal was reached between SAG-AFTRA and the ad industry earlier this month.

Major deal points in the Contracts are as follows:

  • Term: 3 years retroactive 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/New Media 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 For”: producers may film or record people in public without triggering the application of the Contracts (provided such people are neither scripted nor 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 Over” Rates: 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;
  • Internet and/or New Media “Made For” 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.

Click here for a complete summary of the 2013 SAG-AFTRA Television and Radio Commercials Contracts.

For next steps, the contracts must be ratified by union members.  According to SAG-AFTRA, "all members in good standing as of April 1, 2013, will automatically receive a postcard with voting instructions. The postcard will be mailed on or about May 1, 2013. Tabulation of ratification votes received by the voting deadline of May 31, 2013, 5 p.m. PDT (electronically or by mail) will be completed that day."

Topics:  Advertising, Collective Bargaining, Marketing, Television Commercials, Unions

Published In: Art, Entertainment & Sports Updates, General Business Updates, Communications & Media Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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