At press time, both sides in the spot actors’ contract negotiations agreed to extend the deadline of the existing pact to April 10. The original contract was to have run through March 31. The 10-day extension is intended to give the parties a chance to review the latest proposals, with talks slated to resume on Monday (4/10) in New York.
Details of the proposals weren’t known as SHOOT went to press. Word is that the Screen Actors Guild (SAG) and the American Federation of Television and Radio Artists (AFTRA) made a presentation on March 31, which the Joint Policy Committee (JPC)—representing the American Association of Advertising Agencies (4A’s) and the Association of National Advertisers (ANA)—will assess. Meanwhile, on March 30, attorney John McGuinn, chief negotiator for the JPC, publicly referred to a plan for the JPC to present its own comprehensive proposal to SAG and AFTRA.
While the extension is generally regarded as a positive sign, the prospect of an actors’ strike still looms over the spot industry. Members of SAG and AFTRA voted overwhelmingly (93 percent of ballots cast) to give their negotiating team and the board of directors at both unions the authorization to call a strike "if it becomes absolutely necessary in order to achieve a fair contract" with the JPC. If talks reach an impasse, it’s generally believed that the union boards would convene during the third week in April to determine whether or not a strike is warranted. However, McGuinn cautioned that the industry cannot count on that projected timetable. He noted that the union boards could hold an emergency session and institute a strike earlier, so the industry must be prepared to implement contingency plans to continue working. Options include using nonunion and/or willing union talent, and producing outside the U.S.
McGuinn’s comments were made during a March 30 session of Producers Conference 2000 in New York. He made a guest appearance to update ad agency heads of production and executive producers on the status of contract negotiations. Noting that it was premature to predict the outcome of labor talks, particularly since the situation at the negotiating table could change dramatically at the eleventh hour, McGuinn nonetheless didn’t offer cause for optimism. He likened the two sides as trains headed on a collision course, and related that the current negotiations are perhaps the toughest he’s experienced in his 25 years at the collective bargaining table.
Indeed, as previously reported, the two parties are divided on several major issues, several of which were delineated by McGuinn. The JPC contends that the per-use Class A residual formula was born in the 1950s, when the "big three" networks delivered 90 percent of the audience. The JPC is calling for replacing that formula with a flat rate payment policy, which the unions adamantly oppose. Meanwhile, SAG and AFTRA want the per-use formula to apply to spots shown on cable television; the norm has been a flat $1,000 payment per 13-week cycle on cable.
Another point of contention involves commercials appearing on the Internet. The unions, said McGuinn, have devised "a complicated formula" for recompense that involves hits and click-throughs. In contrast, the JPC has proposed a payment of two session fees for broadcast commercials that appear on the Internet. Furthermore, the JPC claims that the unions have no jurisdiction over commercials that are created specifically to run on the Internet. McGuinn alleged that SAG and AFTRA can only negotiate in the broadcast arena, which covers TV and radio.
The JPC is also "resisting" what McGuinn described as "an expensive global monitoring system" for residual payments. The unions are requesting means for more vigilant monitoring, alleging that there has been a significant number of cases in which actors’ residuals have been underpaid.
According to McGuinn, the unions are also seeking to expand their jurisdiction to Canada and Mexico. The JPC objects to that proposal.
McGuinn said that SAG and AFTRA are asking for a 20 percent increase on nearly all rates, with a 30 percent hike for Spanish-language commercials. He characterized those proposals as being "wildly out of proportion."
He also noted that the unions advocate that residuals be paid to all vehicle drivers appearing in spots. Currently, only stunt drivers receive residuals.
McGuinn’s appearance keyed a Producers Conference "Hot Topics" panel discussion moderated by Matt Miller, president of the Association of Independent Commercial Producers (AICP). Panelists were AICP national chairman Alex Blum, partner/ executive producer at bicoastal Headquarters; past AICP national chairman Frank Scherma, proprietor/executive producer at bicoastal/interational @radical. media; AICP vice chairman Al Califano, partner/executive producer at bicoastal OneSuch Films; Texas East, co-director of the broadcast production department at Ogilvy & Mather (O&M), New York; and David Perry, director of broadcast production at Saatchi & Saatchi, New York.
If a strike occurs, Scherma said that "it’s important that we as an industry do not stop working. The minute we do, the union gains the upper hand. If we’ve got to go out of the country or go nonunion, we’ve got to keep working." He added that nonunion talent is a viable option, and advised the industry to tap into "your visual directors. Look seriously at visual concepts that are less dialogue-intense."
Scherma noted the irony of a strike prompting more filming to leave the country, in that SAG has been an outspoken opponent of runaway production. Blum picked up on that point, relating that SAG teamed with the Directors Guild of America to jointly commission and fund a study documenting the economic impact of runaway production on the U.S. film industry (SHOOT, 7/9/99, p. 1). Blum contended that much spotwork is leaving the U.S. because of the high cost of actors’ residuals.
Califano noted that "many of us are prepared to cast nonunion," observing that the nonunion talent pool is much stronger now than in ’88, when the actors’ unions conducted a strike against the ad industry.
Perry said that if a strike is called, Saatchi & Saatchi has advised its clients not to produce spots for the first week. He recalled the ’88 strike, during which work was done that later had to be re-shot. For the short term, he said the agency would hold back. However, he added that "the longer the strike, we’ll be forced to produce."
East acknowledged that some spots could not be done during a strike, such as those involving high-profile celebrity talent or assignments that require exceptional acting performances. But, he added, there’s still room to work. East related O&M’s position: "We’re going to keep producing. Our counsel received the 4A’s position paper (SHOOT, 3/24, p. 1) and determined we are within our rights [to continue producing]. … We will produce and go where we have to [in order to keep working]."
