SAG Contract Negotiations: UPDATE

The AAAA-ANA Joint Policy Committee on Broadcast Talent Union Relations (JPC) was created in the early 1960’s as the management negotiator for broadcast talent. Prior to its creation the negotiations were conducted by the networks. As you can imagine, little thought was given by the networks to the needs of agencies and advertisers.

The Joint Policy Committee is composed of an equal number of representatives from the 4-A’s and from the ANA (Association of National Advertisers.)  The JPC leader at this time is labor lawyer Doug Woods. He is paid by the ANA. This will be his first time at the table. It will also be Alan Rosenberg’s (new president of SAG) first time at the table.

Advertisers are never at the table, nor in the same room, but are always behind the scenes in another hotel room (always the same hotel, however).

There is a joint study (between the JPC and the unions) being commissioned to look at alternate ways of compensating performers in commercials. It is not to look at working conditions and other things normally negotiated, but at the overall concept of residuals. How to fairly compensate performers in commercials along with what’s fair for the agencies and the advertisers: iPods, cell phones, computers, web sites, Class A, Class B, Class C, wild spot, syndication, industrial, cinema, stadium, supermarkets, point of purchase sites, airplanes, waiting rooms, maybe even walls of the subway, and on and on and on.

RFP’s have been sent to nine groups: Ernst Young, Booz Allen, LEK, Cornell University (2 approaches), Syracuse University, Wharton, Princeton, and a combined effort between University of Illinois and Northwestern. It is expected that this study will cost between $1M and $2M, half from each side.

We believe that there will be an agreed interregnum. The contract ends on October 29, 2006, and could be postponed for a period of time (perhaps with an adjustment of rates) depending on the time required for the study. How much time should become clearer once the proposals from the vendors have been received.

Hopefully this will help you understand the dynamics of the JPC/SAG/AFTRA equation and could help in explaining the situation to clients who are not on the JPC.    

If you need more information please call.