DGA SHOWS SUPPORT FOR STRIKING ACTORS

Excerpted from DGA President Jack Shea's speech at the 2000 ANNUAL Membership Meeting

(Los Angeles, California - May 18, 2000)

As you well know, on May 1st, the Screen Actors Guild and the American Federation of Television and Radio Artists went on strike against advertising agencies.I thought it important for all DGA members to understand the issues involved in this strike and why these issues are important to us.

They are striking over the important issue of residual payments. SAG/AFTRA's current "pay-per-play" commercial contract calls for actors to receive residual payments every time their commercials air on one of the six broadcast networks-ABC, CBS, NBC, Fox, UPN and the WB. However, for ads airing on cable channels, SAG/AFTRA members receive a renewable flat fee of $1000 or less for each 13-week run, regardless of how many times the commercial airs in each 13 week period.

SAG/AFTRA is seeking to extend the pay-per-play format to the cable industry, while the commercial agencies are attempting to extend the current flat-fee cable arrangements to network broadcasts.

This strike is a dress rehearsal for the critical disputes about fundamental issues relating to residuals and other economic rights that will arise in the next two years. Our residuals must continue to be protected and expanded as traditional media continue to grow and new media such as the internet begin to develop.

We are supportive of SAG/AFTRA's position on these issues. The economy is growing and advertisers pay more for advertising time than ever before, amounting to huge profits for the broadcasters. It seems only reasonable that performers share in these profits. The agencies' proposals amount to nothing less than contract rollbacks that threaten the standard of living for their members, and we applaud our sister guild's efforts both to oppose these rollbacks and to obtain well-deserved gains for its members who work in commercials.

While the issue of commercial residuals for performers may not directly impact DGA members, the matter of residuals in general is of grave concern to our membership. As a matter of fact, we are currently in the midst of a residuals study with SAG and AFTRA. Network residuals, basic cable, foreign sales and the internet are all part of this study, which will culminate in the 2001 and 2002 negotiations.

Should the advertisers succeed in rolling back residuals for SAG/AFTRA members by establishing a buy-out system, it may not bode well for the future of residual payments in other areas, not only for SAG/AFTRA, but for the DGA as well.

However, it is important to note that our commercial contracts are with the Association of Independent Commercial Producers and other commercial producers. They contain a "no strike" provision. This forbids us from engaging in any form of work stoppage in the event of a strike by a sister labor organization. In fact, all of the guilds-includingSAG/AFTRA-have similar provisions in their contracts.

I want to be clear to all of you, however, that if you are working on a "struck" commercial, the Guild is instructing you to refuse to do any work that you don't ordinarily perform. Your rights on this matter are protected by our agreements and by the law.

So while we must honor our contractual obligations to the signatory producers, at the same time I strongly encourage all of you to supportSAG/AFTRA by attending their rallies and voicing your support of their position to the producers and advertisers.

For those of you who are interested, there will be a SAG/AFTRA picket line tomorrow from 11 AM to 2 PM at the Sears at Laurel Plaza in North Hollywood. The address is 12121 Victory Boulevard, for any of you who want to show your support for this strike. You can pick up information flyers on this event at theSAG/AFTRA strike support table in the back of the room.

In addition, we are organizing DGA support pickets for a major event next week. There is a sign up sheet at the table for this as well. If you are interested, please leave your name and a phone number at this table, and we will contact you when we have more information.

Again, I reiterate the DGA's support for the Screen Actors Guild and the American Federation of Television and Radio Artists. We are hopeful that they are successful, and that a satisfactory conclusion to this strike be reached as quickly as possible.