In Depth

SAG, AFTRA Reach TV Ad Contract Deal

The American Federation of Television and Radio Artists and the Screen Actors Guild have reached a tentative contract agreement with the American Association of Advertising Agencies and the Association of National Advertisers.

The new three-year deal, agreed upon unanimously, includes $36 million in increased pay rates, $21 million in increased contributions to AFTRA health and retirement and SAG pension and health plans, and also establishes a compensation scale for work made specifically for the Internet and other new-media platforms. The deal also left the key “Class A” payment structure unchanged from its previous contract.

Additionally, the contract calls for a new two-year study on Gross Rating Points, a new model for performer compensation from Booz & Co., which is scheduled to being April 15.

The AFTRA-SAG negotiating committee and the AAAA-ANA Joint Policy Committee voted on the new contract earlier today in New York City. The agreement will be submitted at a later date to the AFTRA-SAG Joint National Board, followed by a mailing to union members for ratification.

If approved by the unions’ memberships, the new contract would go into effect today through March 31, 2012.

Some highlights of the contract include the following, per SAG’s press release:

—“5.1% overall increase in wages and other compensation over the life of the contracts, including a 4.43% increase, effective April 1, 2009, in Class A, Wild Spot, and basic cable session fees.

—“For product made for the Internet or in New Media, 1.3 times the minimum session fee for 8 week’s use and 3.5 times the minimum session fee for one year’s use.

—“Established new exclusivity provisions for made-for cable only commercials.

—“Increased foreign use payments under the Spanish Language section of the contract.”

(Editor: Baumann)