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AofFM Commercial Announcements Agreement Negotiations

To: All JPC Members and ANA Members
From: Douglas J. Wood and Stacy K. Marcus
RE:  AFofM Commercial Announcements Agreement Negotiations
JPC Authorization and Notice of Withdrawal Information
Notice to Union of Intent to Terminate Information
Date: November 26, 2013

As you may be aware, the collective bargaining agreement between the American Federation of Musicians (AFofM) and the advertising industry (as extended by the bargaining parties in 2012) will expire on February 14, 2014. If your company is a JPC authorizer, your company’s interests in this agreement will be represented by the JPC in negotiations with the AFofM unless your company decides otherwise in accordance with this memo.

The following options are available to you in regard to this matter:

  1. Current JPC Authorizers:
    1. Option 1:
      If you wish to remain a JPC authorizer and a signatory to the AFofM Commercial Announcements Agreement, you do not need to do anything further.
    2. Option 2:
      1. In the event you no longer wish to be represented by the JPC in collective bargaining, you must withdraw your authorization from the JPC no later than December 14, 2013 by written notice to the JPC and a copy to the AFofM. A sample form letter can be provided to you upon request.
      2. In addition, if you also wish to terminate your signatory status and adherence to the Contract upon its expiration date of February 14, 2014, you must provide AFofM with sixty (60) days advance written notice of your desire to terminate the Contract. Such notice must be received by the AFofM (with a copy to JPC Counsel and the ANA) no later than December 14, 2013. As noted below, you may be obligated to separately bargain with AFofM prior to being released from your obligations under the Contract. Please consult with your company’s legal counsel regarding the form and content of that notice and your rights and obligations under the National Labor Relations Act.

        Please Note: Under the National Labor Relations Act, if AFofM contacts you regarding your JPC withdrawal and/or notice of termination and demands that you negotiate directly with the union, you must negotiate with AFofM and bargain in good faith over a new contract. You must bargain until such time as you and the union either agree to terms and conditions on a new contract(s) or you and the union bargain to impasse. During such period of negotiation, you remain bound to the terms and conditions of the current Contract. If the union does not demand that you negotiate, you may be released from further liability under the union contracts but it is strongly recommended that you consult with your legal counsel before making such an assumption. Should you terminate the Contract or the union abandons the Contract, you may also be liable for withdrawal liability assessment from the union’s pension plan. If you have questions regarding pension withdrawal liability, we strongly advise that you consult with your legal counsel.
  2. ANA Members Who Wish to Become JPC Authorizer Signatories:
    The JPC, comprised of members of both the ANA and the Association of American Advertising Agencies (4A’s), has been very successful in the past in negotiating agreements with very favorable terms for the industry. Additional information regarding the JPC and the obligations of being a signatory as well as the forms you will need to complete in order to accomplish this task are available upon request.

    As a reminder, becoming an authorizer to the JPC and/or becoming a signatory to any union labor agreement is not a requirement of your ANA membership.

Advertisers with questions regarding the options presented above and/or to provide you with sample forms for the notification and withdrawal process or further information and forms for authorization to the JPC, should contact Doug Wood at dwood@reedsmith.com or Stacy Marcus at smarcus@reedsmith.com, and agencies with questions should contact Kathleen Quinn at kathleen@aaaa.org.