Actors do quick draw on ad pact Details to be unveiled at SAG-AFTRA meeting Monday
By DAVE MCNARY
After only two days of bargaining, actors and the ad industry have reached a tentative agreement on a new three-year contract.
*Image provided by EMC* Wednesday's surprise announcement represents a sharp reversal from the confrontational approach employed by both sides in 2000, when the breakdown of negotiations triggered a bitter six-month strike by SAG and AFTRA.
The deal still must be approved by the boards of SAG and AFTRA and then ratified by the unions' 140,000 members. Negotiators did not disclose details of the pact; they will be unveiled at a joint SAG-AFTRA board meeting set for Monday. As part of the deal announcement, the chief negotiators disclosed they had launched informal talks prior to the formal start of negotiations.
The trio -- SAG chief exec Bob Pisano, AFTRA assistant national exec director Mathis Dunn Jr. and the ad industry's joint policy committee rep, Ira Shepard -- released a joint statement: "By achieving a fair and equitable contract prior to the expiration date, we have served the mutual best interests of SAG and AFTRA members and the advertising industry," they said. "We have contributed to the momentum of economic recovery for our industry and have helped to insure that everyone keeps working. We commend the members of our committees for their diligence and leadership. The progressive approach to this contract has truly resulted in a win-win situation." The tentative deal culminates a low-key non-confrontational approach by SAG and AFTRA, with leaders deciding against any public show of member support for their negotiating position.
They also disclosed no details of their proposal. No guarantee Approval by the members is not a slam-dunk, according to longtime SAG activist Gordon Drake, who served as national strike coordinator in 2000. Drake told Daily Variety he was skeptical as to whether the deal will build on the gains achieved in the 2000 pact. "The fact they have come back from the bargaining so fast shows what a weak bargaining position they went in with," Drake said. "I'm very nervous about what may or may not be in it. I'm sure that commercial actors will put the details under the microscope in coming weeks." Drake noted the deal is the first agreement negotiated by Pisano, who was hired two years ago by the SAG board partly due to his prior experience in negotiations as a studio exec.
The tentative agreement comes five weeks before the Oct. 29 expiration of the current three-year contract. The unions gave no date as to when the membership ratification process would be completed, but it would likely take at least three weeks once the SAG-AFTRA boards approve. Gilbert's camp The deal comes a day after SAG concluded its national election, with Melissa Gilbert re-elected to a two-year term as president following a campaign in which the strike emerged as a major issue. Supporters of Gilbert contended the work stoppage lasted too long and that then-SAG prexy William Daniels and his allies were unnecessarily aggressive. Gilbert's opponents have defended Daniels' approach as being appropriate for the hardline stance by advertisers, and they criticized her for failure to aggressively seek implementation of an ad monitoring system.
Union insiders have said SAG and AFTRA negotiators were seeking relatively modest hikes in minimums of about 4% annually, plus a boost in producer contributions to their health and retirement funds, now at 13%. Both the SAG and AFTRA health plans, jointly operated with the industry, have been forced to institute premiums, tighten eligibility and cut benefits this year. SAG members generate about 90% of the $700 million annual earnings under the contract.
Key points in the 2000 pact included retention of network residuals rather than a proposed buyout system; setting aside $1 million annually to develop an ad monitoring system; fees of $1,500 a year for Internet ad work; and hikes in the quarterly cable buyout rates from $1,014 in the previous pact to $1,390 in the first year, $1,706 in the second and $2,460 in the third. Since SAG and AFTRA negotiate the contract jointly, members of both unions will receive only a single ratification ballot. ©
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