The Screen Actors Guild and AFTRA’s new tentative commercials contract ignited a flicker of hope that the guild can now return to bargaining its long-expired TV/theatrical pact.
The new commercials pact that negotiators for SAG, AFTRA and the ad industry’s JPC agreed upon early Wednesday is at least a much needed victory for the actors’ unions. The contract marks the first time the unions have bargained jointly since AFTRA bargained its own film and TV contract with the Alliance of Motion Picture and Television Producers last spring.
Other professionals in the industry are also heartened to see the Guild close a deal without threat of a strike.
“It’s outstanding. The two unions were able to strike exactly the right balance of hard-nosed protection of our members and a responsible approach to a tough negotiation,” a member of SAG’s national board, who requested anonymity, told TheWrap.
The commercials contract, which still must be submitted to the Joint National Board for approval and then mailed to members of both unions for ratification, included a $36 million wage increase, a $21 million increase in pension and health funds and the unions’ first payment structure for made-for-the Internet commercials.
The SAG board member said the gains are a remarkable victory considering the rocky economy, which has hit the ad industry hard. “We got wage increases and pension and health increases when unions all over the country make concessions. That just cannot be overlooked,” he said.
The increases in P&H contributions are especially welcome because all of the Hollywood unions’ pension plans decreased in value 20 percent last year due to the Wall Street crash. SAG's pension plan lost 22.7 percent of its value; AFTRA’s fell 23.4 percent.
A date to send the contract to SAG and AFTRA’s joint board has not been set, but a source close to the talks said it would happen soon.
Not that everything went without a hitch. Talks extended beyond the midnight Tuesday deadline, and another individual close to the negotiations said they were not as amicable as they appeared. The unions had to fight hard against several rollbacks proposed by the JPC, including a $20 million cut to pension and health contributions.
“In exchange to agreeing to an extremely high cap on health and retirement earnings and flexibility, we got them to give us a very generous wage increase and more than $21 million in contributions to the funds over the life of the contract,” the individual said.
The unions also capitulated to a two-year study of the Gross Ratings Points compensation model, to be conducted by consulting firm Booz Allen Hamilton. SAG and AFTRA argued in a drafted strike-authorization letter that the study would impair the unions’ ability to adopt a new compensation model.
And many actors feel the gains made in the commercials contract still aren’t enough. Former SAG Hollywood board member Brian Hamilton said that although he is grateful that his unions’ negotiators held their ground, actors’ compensation for commercial work isn’t what it should be.
