The Joint Negotiating Committee of the Screen Actors Guild (SAG) and the American Federation of Television and Radio Artists (AFTRA) reached a unanimous tentative agreement early this morning (4/1) with the Joint Policy Committee (JPC) of the American Association of Advertising Agencies (AAAA) and the Association of National Advertisers (ANA) on terms for successor agreements to the AFTRA Television and Radio Commercials Contracts and the SAG Television Commercials Contract, subject to approval by the SAG/AFTRA Joint National Board.
The successful negotiations were concluded just hours past the March 31 expiration of the prior three-year contracts.
A key provision of the new agreements calls for a two-year pilot study, scheduled to get underway on April 15, that will test the Gross Ratings Points (GRP) model of restructuring compensation to performers as proposed by Booz & Co, a consultancy firm which was commissioned by SAG, AFTRA and the JPC back in 2006 to explore and assess alternative compensation models to deal with the changing media landscape.
The new pilot study will be conducted by a jointly retained consultant engaged by the unions and the ad industry. The results and possible adoption of that study’s findings will be subject to negotiation by the parties not later than January 3, 2012.
Other highlights of the just struck commercials contracts include:
• The unions successfully protected the “Class A” residuals payment structure and continued unchanged the editing provisions in the previous contract.
• A 5.5% 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
• A 0.5% increase in the employer contribution rate to the AFTRA H&R and SAG P&H plans bringing the total contribution rate to 15.3%. The agreement provides for a cap on P&H and H&W contributions.
• And increased foreign use payments under the Spanish Language section of the contract
Formal negotiations between the AFTRA/SAG Joint Negotiating Committee and the JPC began on February 23 and concluded on the morning of April 1 in New York City.
Details of the new agreement will be submitted to the SAG/AFTRA Joint National Board for approval at a date to be determined, and if approved, will be jointly mailed to the membership of both unions for ratification.
Ron Cicero and Bo Clancey Launch Production House 34North
Executive producers Ron Cicero and Bo Clancey have teamed to launch 34North. The shop opens with a roster which includes accomplished directors Jan Wentz, Ben Nakamura Whitehouse, David Edwards and Mario Feil, as well as such up-and-coming filmmakers as Glenn Stewart and Chris Fowles. Nakamura Whitehouse, Edwards, Feil and Fowles come over from CoMPANY Films, the production company for which Cicero served as an EP for the past nearly five years. Director Wentz had most recently been with production house Skunk while Stewart now gains his first U.S. representation. EP Clancey was freelance producing prior to the formation of 34North. He and Cicero have known each other for some 25 years, recently reconnecting on a job directed by Fowles. Cicero said that he and Clancey “want to keep a highly focused roster where talent management can be one on one--where we all share in the directors’ success together.” Clancey also brings an agency pedigree to the new venture. “I started at Campbell Ewald in accounts, no less,” said Clancey. “I saw firsthand how much work agencies put in before we even see a script. You have to respect that investment. These agency experiences really shaped my approach to production--it’s about empathy, listening between the lines, and ultimately making the process seamless.” 34North represents a meeting point--both literally and creatively. Named after the latitude of Malibu, Calif., where the idea for the company was born, it also embraces the power of storytelling. “34North118West was the first GPS-enabled narrative,” Cicero explained. “That blend of art and technology, to captivate an audience, mirrors what we do here--create compelling work, with talented people, harnessing state-of-the-art... Read More