While both sides affirmed that their priority is to reach an agreement on a new commercials contract as negotiations resumed this week (3/14) in New York, the actors’ unions—the Screen Actors Guild (SAG) and the American Federation of Television & Radio Artists (AFTRA)—and the Joint Policy Committee (JPC) of the American Association of Advertising Agencies (4A’s) and the Association of National Advertisers (ANA), have put plans into motion in case of an impasse. The current spot contract for actors expires April 1.
As earlier reported, SAG and AFTRA sent out ballots on March 7, asking members to give the unions the authority to call a strike "if it becomes absolutely necessary in order to achieve a fair contract." It’s generally regarded as a fait accompli that membership will vote in favor of providing union leadership with strike authorization leverage.
Attorney John McGuinn, the JPC’s chief negotiator, said that "ninety-nine percent of our time and resources are being spent trying to reach an agreement." However, in light of the SAG and AFTRA strike ballot, McGuinn noted that it’s "prudent" for the ad industry to have a contingency plan in case a strike comes to pass.
"Our message to our people is ‘business as usual,’" related McGuinn to SHOOT. "We plan to continue producing commercials in the event of a strike—or if there’s no strike—with whomever is willing to work, nonunion or union, in the U.S. or outside the U.S." He noted that there’s an extensive pool of nonunion talent; a resource that’s developed significantly since ’88, when the actors’ unions struck against the ad industry for a three-week stretch. McGuinn added that he has met with the Association of Independent Commercial Producers (AICP), which concurs that the industry can continue to produce commercials efficiently if there’s a strike.
Through the casting community grapevine, SHOOT obtained a copy of a letter dated March 9, that was sent by AICP president Matt Miller to commercial casting and talent agents as well as casting directors nationwide. "In the event of a SAG strike," read the letter, "AICP production companies fully expect to continue working with you to fulfill casting requirements. It is the intention of our member companies to move forward with their production commitments and continue to provide their clients with the highest quality production possible. We anticipate that production companies will be able to meet the needs of advertisers here in the United States. In the unlikely event that production companies fail to meet the needs here, then we can be certain that they will look to foreign markets. In that case, the entire American production industry loses."
Miller’s letter went on to point out that the AICP is not a party to the actor contract negotiations, but that AICP member signatory companies are the employers of record for all crew contracts. "We plan for these relationships to be honored," read the letter, "and our members plan to employ those talented crew members that have standing agreements with us."
The JPC expects that, as in the past, there will be no "sympathy strikes" by the production crew unions should a SAG/ AFTRA strike materialize.
RUNAWAY IRONY
If the U.S. casting industry cannot provide ample, viable nonunion talent options domestically, a strike could prompt significantly increased levels of filming in foreign countries. Several production house executives have told SHOOT that they’ve already seen a jump in the number of jobs with specs calling for lensing outside the U.S., specifically in anticipation of a possible strike.
The situation is ironic in that SAG has been staunchly opposed to filming leaving the U.S. for foreign destinations. Last year, SAG and the Directors Guild of America (DGA) co-sponsored an independent study documenting the impact of runaway business on the American economy (SHOOT, 7/9/99, p. 1). SAG and the DGA also hired Washington, D.C. lobbyists to develop and drum up support for legislative solutions to the runaway problem. And numerous industry groups—including SAG, DGA and the AICP—are members of the National Entertainment Coalition, a recently formed organization (SHOOT, 1/28, p. 1) that hopes to work closely with legislators on anti-runaway measures.
McGuinn acknowledged the "irony" if such a strike-prompted scenario unfolds, resulting in more runaway production and lost jobs for American workers. Asked what the prospects are for reaching an agreement in current negotiations, McGuinn declined comment. He explained that the JPC and the unions have agreed "not to publicly discuss the progress or lack thereof" in their talks.
SHOOT outlined the list of proposals brought to the table by both sides when negotiations got underway on Feb. 14. Key issues included residual payments for broadcast spots shown on cable TV, payment to talent for foreign usage of American spots, and a cap on employer contributions to actors’ health plans (SHOOT, 2/4, p. 1).
Prior to the start of talks with SAG and AFTRA, the JPC issued an advisory to 4A’s and ANA members. McGuinn said that the points in that letter remain extremely relevant, including urging advertisers and agencies not to sign "interim agreements" with the talent unions during a strike. The advisory also suggested that advertisers and agencies consider the following:
•Expediting renegotiations for commercials that are about to conclude their 21-month maximum periods of use so as to minimize any disruption caused by performers refusing to extend their contracts during a strike.
•Making sure there is no provision allowing celebrity talent to withdraw his or her commercial from use in the event of a strike.
•And producing critical campaigns this spring prior to April 1, particularly for spots that are performance-driven.
The last piece of advice appears to have been widely embraced. Numerous houses have told SHOOT that certain jobs are being pushed through to wrap before the current actor contract’s expiration date. Some have speculated that this has contributed to the growth reflected in figures released during the first quarter by the Entertainment Industry Development Corporation (EIDC), the public/private sector partnership that oversees the Los Angeles City/ County Film Office.
For example, the EIDC reported that commercial location shoot days in Los Angeles City and County rose 38 percent to 648 in January, as compared to the same month in ’99 (SHOOT, 2/18, p. 10). According to an EIDC announcement at press time, spot location filming days last month in greater Los Angeles jumped to 769, nearly 10.5 percent more than in February ’99. That brings the L.A. tally for the first months of 2000 to 1,417 commercial location shoot days—a 21.6 percent increase over the 1,165 reported by the EIDC in January-February ’99.
