SAG/AFTRA Contract Negotiations Status Report

On December 22, 2005, the JPC proposed to SAG and AFTRA that we meet and discuss an alternate method of compensation pursuant to paragraph 64 of the 2003 SAG Commercials Contract and paragraph 65 of the 2003 AFTRA Television Commercials Contract. The pertinent provisions provide:

The parties agree to explore alternate methods of compensation for principal performers appearing in television commercials; the parties agree to meet for this purpose in sufficient time before October, 2006 in order that meaningful exploration of alternate methods of compensation and agreement, if any, on this subject can be negotiated before October 29, 2006, the expiration date of the 2003 Commercials Contract.

Following a meeting with the unions on January 20, 2006, we proposed that the unions and the JPC jointly fund and undertake a study through an independent consultant with regard to alternate methods of compensation. In pertinent part, the JPC proposal provided:

  1. That Unions and the JPC jointly retain the services of an independent authority with requisite qualifications (the "Authority") to study the concerns of the Unions and the JPC with regard to the current method of compensation and issues each side has with respect to compensation for so called "new media" (the "Compensation Study").

  2. The Unions and the JPC agree to work together in this effort and establish the parameters of the Compensation Study, the qualifications of the Authority, and the content of an RFP and thereafter solicit proposals.

  3. Submission of a proposal to the Screen Actors Guild - Producers Industry Advancement & Cooperative Fund for funding the Compensation Study.

While the unions have expressed a preliminary interest in such a study, we must be prepared for negotiations should we be unable to proceed together with the unions.

As such, the JPC will shortly issue a request for credentials (RFP) from third parties interested in being considered for such a study. This initial RFP is not intended to elicit specific proposals. Its sole purpose is to elicit credentials from organizations that would be considered for a study. Issuing this RFP does not preclude cooperation from the unions as we move closer to awarding a contract.