Voting Ends Wednesday On SAG-AFTRA’s New “Landmark” Commercials Contract

Wednesday is the last day for SAG-AFTRA members to vote on the union’s new commercials contract, which guild leaders are touting as a “landmark” deal for performers. If ratified, the new contract — which was approved unanimously by the guild’s national board of directors — would go into effect on June 1.

“The gains negotiated for the new SAG-AFTRA commercials contracts will modernize and reshape your future,” the guild told its members. The new pact, which is unlike any deal that’s gone before, is designed to address an evolving ad industry that generates more than $1 billion a year for SAG-AFTRA members.

“Technology, innovation and 24/7 media platforms have disrupted the traditional advertising model that our commercials contract was built on,” the union said in a new video about the contract. “An evolving industry required a new approach to compensation that is simple, flexible and predictable.”

The new contract includes a 6% pay raise, increased pension and health funding, protections against sexual harassment, and coverage of stunt coordinators. But the real innovations are in what the guild calls upfront use packages (see details and the union’s explainer video below). “The traditional elements of our contract remain an option for those advertisers who know and love that contract,” the guild said, “and now we have three simple, flexible and predictable payment options as well.”

The union added: “SAG-AFTRA and its bargaining partners heard the call for change. We worked together to create these innovative payment models to benefit both the advertising industry and its union performers.”

“This is arguably the most important negotiation in a generation,” said David White, SAG-AFTRA’s national executive director and the union’s chief negotiator. “The committee developed innovative solutions to the challenges facing the advertising industry with an agreement that modernizes the commercials contracts, making both of them more flexible and relevant to this quickly evolving industry.”

SAG-AFTRA president Gabrielle Carteris, who chaired the negotiating committee, said that the new contract “will deliver essential gains to our members while positioning performers and the industry for growth in a rapidly changing environment. We’ve introduced a bold new model that speaks to the needs of a constantly evolving workplace.”

Here are details of the three Upfront Use packages, provided by SAG-AFTRA:

Upfront Use Plus
• Session fees are paid per the main contract, and may not be credited towards use;
• A $20,000 payment upfront for one year of use for on-camera principal performers, with all other categories paid at the same percentage as the session fee;
• Guarantee due within 60 calendar days of first production day;
• Includes up to 10 Class A airings and all other use types. Additional Class A uses may be purchased for $100 per on-camera principal per use with no declining scale, no reset of units and no discounts for guarantees or length;
• The maximum period of use is one year;
• Exclusivity: An additional 25% for the first noncompetitive product; 15% for the second non-competitive product; 10% for the third non-competitive product; and 200% for all non-competitive products beyond three.

Upfront Use Flex
• Session fees are paid per the main contract, and may not be credited towards use.
• An $8,000 payment upfront for one year of use (all other categories paid at the same percentage as the session fee);
• Guarantee due within 60 calendar days of first production day;
• Use is credited against the guarantee until exhausted, at which point the rates below will be paid in addition to the guarantee:

Each 13-week cycle of use is paid or credited as follows:

• All Cable and Local Cable – $3,400
• All Wild Spot and Local Cable – $2,000
• All Digital (Internet and New Media, Over the Top platforms including but not limited to Hulu) – $1,300
• All Spanish Language – $2,000
• All Other (Industrial, Dealer, ITN, Diginets, Class B and C) – $1,000
• Class A uses may be credited or purchased for $100 per use with no declining scale, no reset and no discount for guarantees or length;
• Foreign use may be purchased at 60% of the rates set in the main contract for both English and Spanish markets;
• Maximum period of use is one year;
• Exclusivity: An additional 25% for the first noncompetitive product; 15% for the second non-competitive product; 10% for the third non-competitive product; and 200% for all non-competitive products beyond 3;
• Reporting: Payments made under the Upfront Flex option must be accompanied by a check stub showing the cumulative use and payments to the date of the check. If no payments are made within the first 26 weeks of the MPU, then a zero check with the use to that point shall be issued along with the remaining balance.

Upfront Use Digital
• Session fees are paid per the main contract, and may not be credited against use;
• A $3,825 payment upfront for one year of use for on-camera principal performers;(all other categories paid at the same reduced percentage as session);
• Use fee due within 60 calendar days of first production day;
• Upfront Use Digital includes the right to use on the internet, including Over-the-Top platforms, and New Media;
• For Foreign and Industrial use, the payment is 60% of the scale rates identified in the agreement;
• Consent of any principal performer is required prior to any television use;
• Maximum period of use is one year;
• There is no exclusivity under Upfront Use Digital.