Actors ratify commercials contracts

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

Comments

[Rob]

Had Bob Pisano not moved the negotiating date 6 months in collusion with the studios a few years back, SAG would have walked with the WGA.

Instead, we all got screwed.
Nice Job, SAG!

This union won't exist in 10 years at this rate.

[JohnRJ08]

SAG members had a meeting last night in Hollywood to discuss the new contract. It was an appalling display of personal greed and total lack of foresight. If SAG's membership ratifies the new agreement, there will be no Screen Actors Guild within five years, and AFTRA will be the surviving union, if you can call it that. The bottom line is that producers don't want to have to continue to pay residuals to actors, especially for "alternate media", i.e. the internet. The networks have already made it clear that the internet is where a lot of their programming is headed. There will be no more re-runs on regular television. Most working actors rely on residuals in order to live, and they're going to be shocked when they see those earnings drop by more than 90%. With the new agreement, producers will be able to air a show online as frequently as they like and pay talent less than $30 per showing. The SAG members who don't want a strike include the wealthy actor/producers and the actors who are currently in a series and don't want their cash flow interrupted. It's all about taking care of #1 and personal greed, rather than having any compassion at all for the future of working actors. The meeting last night was an enlightening and nauseating thing to behold.

[Jerry w]

JohnRJ08 said:

"Most working actors rely on residuals in order to live, and they're going to be shocked when they see those earnings drop by more than 90%"

Not withstanding the oxymoron "working actors", to rely on something to live on is not a viable option for so many people now, perhaps it's time to re-think this and consider getting yourself another income source that you can "rely" on.

Sorry to break the dream, but consider making a trip to Detroit and talking to the former auto workers who no longer have a job, or a chance at a pension, because the auto maker's bankruptcy absolves them of the responsibility of living up to their contractual obligations of the past.

Now, transpose that scenario to the studios/networks and see what you have left.

Jerry w
www.boskolives.wordpress.com

[Cino]

I am SOOOO sick of SAG!!!!!

As a member of BOTH, I am still angery over being forced to pay dues to TWO Unions because of a handful of whiny Priss Pots at SAG who refused to merge.

We need to merge these Unions like yesterday!!!!!!

[JohnRJ08]

Jerry w-- Most actors have other jobs or they wouldn't be able to eat. You obviously know nothing about the entertainment business and the struggles that people go through in that profession. Not everybody works for a car company or even want to. As far as merging the unions is concerned, AFTRA has become a rubberstamp for the producers, negotiating contracts which signifcantly diminish the payscales and rights of actors. AFTRA betrayed SAG after the writers strike, reneging on an agreement to collectively bargain against the producers and studios. As a result, everybody has suffered, especially AFTRA members.