SAG, AFTRA, Advertisers Extend Commercial Deal

SAG, AFTRA and the Joint Policy Committee, the bargaining arm for advertisers, agreed to an extension of the unions' commercials contracts, which were set to expire at the end of October. The new deadline is March 31, 2009.

This is the second extension of the contract in two years. The original three-year deal, set to expire in October 2006, was extended by two years so that the parties could hire a consulting firm to study the impact of new media on advertising. The study was conducted by Booz Allen Hamilton, but the details have not been made public.

The extension comes while SAG is stuck in a stalemate with the studios and networks over a new television and film contract, which expired June 30. There are several outstanding issues remaining, most notably compensation and jurisdiction for work in new media. Because almost all of SAG's time and attention is being spent on the TV/film deal, leaders and its board need the extra time to go over the Booz Allen study.

Another major sticking point is SAG's fractured relationship with AFTRA, with which it has bargained almost all of its major contracts for nearly three decades under an agreement known as Phase One. The joint bargaining relationship fell apart in late March, the culmination of a long, bitter feud between the unions. As a result, AFTRA negotiated its own primetime TV contract with producers, one that included the same new-media provisions accepted by the WGA and DGA but rejected by the guild.

SAG has about 120,000 members and AFTRA has about 70,000. About 44,000 performers belong to each union. The guild spent more than $100,000 on a campaign to convince the joint cardholders to vote against AFTRA's TV deal, but it passed with more than 62 percent of the vote.

On July 9, the day that contract was ratified, SAG national executive director Doug Allen asked AFTRA to return to Phase One unconditionally. However, AFTRA national president Roberta Reardon told SAG in a letter two weeks ago that the union would only return to Phase One if SAG agreed to mediation sponsored by the AFL-CIO.

"Today's announcement only deals with the extension," said AFTRA spokesman John Hinrichs. "A decision on Phase One and joint negotiations has to be decided by the AFTRA national board."

If the two unions do decide to negotiate under Phase One, they would need time to meet with members, known as the wages and working conditions process.

"I think it's great news," said Sam Freed, president of SAG's New York board and the guild's 2nd national vice president. "Because we've been preoccupied with TV/Theatrical negotiations we haven't been able to begin the process of W and W in a timely way. We need the membership to be involved as much as they can. We need to know what they're finding out on the street in their day-to-day work lives. We also have to educate them on the new aspects of this contract, on how the Internet has changed the landscape of advertising.

"These commercials contracts were established when there were only three networks. They've obviously changed over the years to incorporate cable, but now it's changing so rapidly it's hard for the guild to keep up."

However, a Hollywood-based actor who was closely involved in the commercials strike of 2000 did not like the first extension and does not care for this one, either.

"The JPC is coming out way ahead," the actor wrote in an email, "because without a full set of negotiations SAG is getting the short end of the stick re: Increases we need and deserve."

--Andrew Salomon