Unpacking The 2019 SAG-AFTRA Commercials Contract (Part 2): A Rundown Of The Major Changes

In my previous post, I shared my initial thoughts on the Alternate Compensation Structure ("ACS"), the big news coming out of the recently concluded negotiations of the 2019 SAG-AFTRA Commercials Contract ("Commercials Contract"). The excitement surrounding the ACS - it is, indeed, a shiny new object - shouldn't distract us from the other important changes agreed upon by the union and the Joint Policy Committee ("JPC").

In this post, I identify the twelve changes that I believe will have the biggest impact on producers. The changes run the gamut: some address issues of importance to the union and its members; others are upgrades intended to better align the Commercials Contract with the realities of production (especially digital production) in 2019; a few clarify ambiguities that have tortured talent payment teams for some time; and several are aimed squarely at trying to "level the playing field" between signatory and non-signatory brands and agencies.

A reminder: SAG-AFTRA's National Board unanimously approved the contract, and now union members get to vote on ratification (with a deadline set for May 9th).

UPDATE (5/9/19): SAG-AFTRA Members have ratified the contract!

A Rundown of the Top 12 Changes 1. Rates - "Nothing in this world that I like more than checks."

Cardi B. won't be the only SAG-AFTRA member getting big (ok, at least bigger) checks in 2019.

In the new contract, wages are increased by 6% across the board. This means that session fees will be approximately $712 for on-camera principal performers, $535 for voice-over performers, and $388 for background performers.

In addition, contributions to the pension and health plans go up from 18% to 19% of gross wages, with a "discount" of .5% for JPC authorizers. (Every little bit counts.)

The rate increases will be effective retroactively as of April 1, 2019.

2. MPU Extensions - "Ain't too proud to beg."

   It is hard to resist the Temptation is to call this one a big deal.

   Under previous versions of the Commercials Contract going back to time immemorial, the maximum period of use ("MPU") for a commercial automatically renewed unless the performer took the initiative to send a notice of non-renewal to the producer. The 2019 Commercials Contract switches things up by shifting the burden to producers to affirmatively reach out to performers to negotiate contract extensions beyond the MPU. If a producer can't locate a particular performer, the producer can notify the union, and the union will have 30 days to locate the performer. If, ultimately, the union can't find the missing performer, the producer is allowed to renew the spot at the same rate paid during the prior MPU.

   The impact this change will have on renewal of commercials remains to be seen. For performers represented by agents, it shouldn't matter much since, under prior contracts, many agents (like clockwork) automatically would send termination notices and demand renegotiation. However, certain types of performers - including non-professionals (who don't qualify for a waiver), group singers, stunt performers, and performers not represented by agents - often did not send termination notices. For spots with these categories of performers, this definitely will make more work for producers, and it could result in higher wage payments in some cases.

   In addition, it is likely that this change will be felt more with spots that are produced under the ACS (with its shorter, 1-year MPU) than spots produced under the main contract (with the traditional 21-month MPU). Commercials with a life span beyond 21-months are less common today than in days of yore. (Surely I am not the only person who can recite, verbatim from top to bottom, classic spots from Life cereal and Calgon detergent.) Perhaps, in light of this change, they will be rarer still.

3. New Categories of Principal Performers - "It's the pleasure principle (the principle of pleasure)."

   (The homograph was the best I could come up with. Apologies to Miss Jackson.)

   Two new categories of principals performers are recognized.

   First, stunt coordinators who do not perform in a commercial are entitled to a session fee. The coordinator only gets use payments if she actually perform a stunt in the commercial that meets the requirements of existing Section 6.F.

   Second, a performer who is signing dialog using American Sign Language (or other listed sign languages) "under circumstances which would qualify said performer as principal were that performer audibly speaking dialog," but whose face does not appear on camera, is considered an off-camera principal performer.

4. Editing/Additional Lift - "Won't you lift me up, up, high upon your love."...