Actors ratify commercials contracts

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It may not do much to spur sluggish commercial production in Los Angeles, but the two unions representing Hollywood actors overwhelmingly backed new contracts covering their work in commercials.

Members of the Screen Actors Guild and its smaller sister union, the American Federation of Television and Radio Artists, voted 93% in favor of the contracts, which cover performers working in commercials made for and reused on television, radio, the Internet and other new media.

The agreements, which are retroactively effective to April 1, provide a 5% pay increase, contain about $24 million in increased contributions to the unions’ health and pension plans and, for the first, time, establish a pay structure for work made for the Internet and other new media.

The sides also agreed to hire a consultant to conduct a two-year study to test a new way of paying actors. Advertisers, who’ve been hit hard by the recession and a long-term decline in national TV ad viewership, want to revamp the current ‘pay-for-play’ system in which actors are paid based on how often and where a spot runs. Instead, they favor a ‘gross-rating points’ system, in which residuals would be tied to viewership. The unions, however, rejected the demand but agreed to study the proposal.

The strong endorsement was expected as the boards of both unions had unanimously endorsed the agreements, which cover more than 30,000 actors who work in commercials.

Next up for SAG is the vote on the film and TV contract, which members are expected to ratify June 9, although that vote probably will be much closer because the union is deeply divided over the proposed terms. AFTRA approved its film and TV contract last year.

— Richard Verrier