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April 11th, 2013
JPC and SAG-AFTRA Tentative Deal Terms
The Joint Policy Committee and SAG-AFTRA reached a tentative deal on a new Commercials Contract. On April 20-21, SAG-AFTRA will present the tentative agreement to its National Board of Directors for its approval. If approved, the deal will then be presented to SAG-AFTRA''s full membership for ratification.The tentative deal must still be approved by SAG-AFTRA's National Board of Directors on April 20-21, and then ratified by its full membership.
- Term: 3 years from April 1, 2013;
- Compensation: a 6% increase on wages for performers, but not on allowances;
- Pension & Health: the p&h contribution rate increases from 15.5% to 16.8%;
- User Generated Contests: entries exhibited in any media after the declaration of a winner will be subject to the Contract rates and terms;
- Public Recording for "Made Fors": producers may film/record people in public for an Internet/New Media spot without making applicable Contract payments, provided such people are not scripted or cast, and provided the producer notifies SAG-AFTRA. However, if the ultimate commercial is used in SAG-AFTRA-covered media other than Internet or New Media, any principal appearing in such commercial must be compensated in accordance with the Contract;
- Internet/New Media "Move Over" Rates: for an 8 week cycle, the rate increases from 133% to 150% of the session fee; for a one year cycle, the rate increases from 350% to 400% of the session fee;
- Internet/New Media "Made Fors" Rates: the rates remain at 133% for an 8 week cycle, and 350% for a one year cycle; and
- Internet/New Media Maximum Period of Use: the MPU remains at 21 months.
Until the new Contract is ratified, producers may continue to pay the 2009-2012 rates, but may want to budget for the increase that will be retroactive to April 1.
If you have any questions about this news, details about the Contract, SAG-AFTRA, or any other advertising or marketing law issues, please contact Jeffrey A. Greenbaum at (212) 826 5525 or jgreenbaum@fkks.com, Brian Murphy at (212) 826 5577 or bmurphy@fkks.com or any other member of the Frankfurt Kurnit Advertising, Marketing and Public Relations Group.
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