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JPC Bulletin: Negotiations Conclude on Industrial Codes

BULLETIN

TO: All JPC Authorizer Signatories to the Screen Actors Guild (“SAG”) 2009 Commercials Contract
FROM: Douglas J. Wood
RE: Producers-Screen Actors Guild (“SAG”) 2011 Codified Corporate/Educational Contract and the 2011 American Federation of Television and Radio Artists (“AFTRA”) National Code of Fair Practice for Corporate/Educational Recorded Material
DATE: April 20, 2011

On or about March 31, 2011, negotiations concluded for the Producers-SAG 2011 Codified Corporate/Educational Contract (formerly, the Producers-SAG Codified Industrial and Educational Contract) and the 2011 AFTRA National Code of Fair Practice for Corporate/Educational Recorded Material (formerly, the AFTRA National Code of Fair Practice for Non-Broadcast Industrial/Educational Recorded Material) (collectively, the “Industrial Codes”) with a group of companies. This group was not a multi-employer bargaining unit and only those companies that negotiated directly with the unions became obligated to the terms of the new agreement at the conclusion of the negotiations (assuming the terms are accepted by the rank and file of the unions (a process that is underway). It is highly likely, however, that the unions will get their members’ approval.  The JPC does not negotiate the Industrial Codes.

JPC authorizers are not, as a result of their status as JPC authorizers, obligated to comply with the Industrial Codes. JPC authorizers are only obligated to comply with the Commercials Codes of SAG, AFTRA, and the AFofM that are negotiated for them by the JPC.

Please be advised that the terms (including, but not limited to, the new rates and P&H contribution level) only apply if a company has specifically agreed in writing with the unions to the new terms or is producing through third party, e.g., a talent payroll company, that has agreed to the new 2011 Industrial Codes. Otherwise, the 2009 Industrial Codes continue to apply to industrial productions by signatories who have not yet agreed to the new terms. If the unions wish to obligate a company to the new terms, whether a signatory to the 2009 Industrial Codes or a non-signatory, the unions are obligated, should a company desire to do so, to negotiate in good faith with respect to a new agreement. Or, a company can elect to simply accept the new terms and forego negotiations when presented with the agreement. The new agreement cannot, however, be mandated by the unions.

Should you be approached by the unions with the new 2011 Industrial Codes, we suggest you consult with your labor counsel or other business advisors before agreeing to any new terms or commencing negotiations.

The JPC cannot provide advice on the Industrial Codes.