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New AFofM 2009-2012 Commercial Announcements Agreement

We are pleased to announce that the ANA-4A's Joint Policy Committee (JPC) has reached agreement with the American Federation of Musicians (AFofM) for a new 2009-2012 Commercial Announcements Agreement (the agreement is subject to final approval by the full JPC and ratification by the membership of the AFofM -both of which are to be reasonably expected).

In order to allow agencies and their payroll companies time to reprogram their systems and issue timely payments predicated on the new rates, we are issuing the following brief summary of the pertinent points of the new agreement. In addition, a copy of the Memorandum of Understanding can be found here.

Summary:

Change in Name:  Because the agreement covers television, radio, Internet and New Media (as it has since 2007), the name is changed from the "Television and Radio Commercial Announcements Agreement" to simply the "Commercial Announcements Agreement."

Term: October 17, 2009 through October 16, 2012.

Wages:

Minimum Call Session:
Effective April 9, 2010, the minimum call session fee for all music tracks produced on or after April 9, 2010 is $120 for Side Musicians and $240 for Leader, Contractor and Single Musician.

Initial Use Payments:
Effective April 9, 2010, Initial Use Payments for any commercial announcement produced using music recorded on or after October 17, 2009 for Side Musicians is $34 and $68 for Leader, Contractor and Single Musician.

Other Wages:
Effective April 9, 2010 and excluding fixed allowances such as cartage, all other wages (including Foreign Use) -- are increased by 4.35% and apply to all music tracks produced on or after October 17, 2009.

To re-cap: the wage increase is not retroactive for any payments made for session work that occurred or for initial use cycles, or use/re-use cycles that commenced during the period from October 17, 2009 through April 8, 2010.

Initial Use/Use/Re-Use cycles that commence on or after April 9, 2010 are to be paid at the new rates for all music tracks recorded on or after of October 17, 2009.

Examples:
1) Music track recorded on March 15, 2010 - session paid at the 2007-2009 rates-no increase due for the session. Music track is then incorporated into a commercial announcement for which the Initial Use Cycle commences on April 16, 2010: the Initial Use Cycle is paid at the new 2009 rate.

2) Music track recorded on November 5, 2009 - session paid at the 2007-2009 rates-no increase due for the session. Music track was then incorporated into a commercial announcement for which the Initial Use Cycle commenced on December 14, 2010: the Initial Use Cycle was paid at the 2007-2009 rates  - no increase due. The commercial announcement then commences a re-use cycle on April 20, 2010 - the re-use cycle is paid at the new 2009-2012 rates.

The above scenarios would similarly apply to those music tracks recorded for television and subsequently dubbed into radio and vice versa.

Wage rates will continue to be rounded as applicable and as in previous agreements.

Effective April 9, 2010, all use/reuse payments under Article XIV shall continue to be based on the current ratio to the applicable session fee.

Pension Payments:

Effective from June 1, 2010 through March 31, 2011 the Pension Rate is 12.48%.

Effective from April 1, 2011 through October 16, 2012 the Pension Rate is 13.08%.

Note: Because of the "Red Zone" issue in regard to the union's pension plan, the Pension rate increases will apply to any music track in any commercial regardless of which AFM Commercials Agreement the music track was originally produced under....for example, a music track which was produced under the 2004 - 2007 agreement and which is currently being used ---the new pension rates will apply to any use payment for that music track.

Health Plan:  No increase.

Eight Week Cycles: Consistent with the SAG/AFTRA Commercials Contracts, signatories may opt for consecutive 8 week cycles of use for non-broadcast and Internet and New Media use, at 38% of the AFofM 52 week rate. NOTE:  In the case of " made fors" - the option for 8 week rates does not commence until after the Initial Use cycle payment is made which continues to cover the first 26 weeks of use.