The Screen Actors Guild – American Federation of Television and Radio Artists (SAG-AFTRA) Commercials Contract, which governs wages and benefits for talent appearing in commercial advertising productions, was renegotiated in early 2016, resulting in a new 2016 Memorandum of Agreement that was unanimously approved by SAG-AFTRA and, on May 9, 2016, ratified by SAG-AFTRA’s membership. The 2016 Memorandum of Agreement is effective retroactive to April 1, 2016 and will be operative for three years, through March 31, 2019.
Front and center in this year’s negotiations was a keen awareness by the Joint Policy Committee (JPC) (which negotiates on behalf of the advertising industry) of the concerns voiced by a multitude of signatory advertising agencies and advertisers that they cannot compete with their non-signatory counterparts from a talent cost standpoint. Of particular concern is the comparatively high talent cost tied to an increased demand for digital content, and, to a lesser extent, the use of real people in commercials. More…