DGA National Executive Director Jay D. Roth addresses West Coast members. (Photo: Joe Coomber). Click picture for larger view.

As per an agreement reached between the DGA and the AMPTP during negotiations, the Interim Settlement Agreement takes effect immediately upon ratification, and therefore will be operative for the upcoming television pilot season. The ISA adapts current agreements to the new technologies that are modernizing the method of TV production. This new "blended contract" recognizes that the methods of recording TV programming are changing, and covers all prime-time dramatic programming regardless of whether it is shot on film, traditional videotape or digital video.

"I'm gratified that our membership overwhelmingly voted to ratify the new contract," DGA President Jack Shea said. "Our Negotiating Committee was able to achieve some major gains for Guild members, including the revolutionary Interim Settlement Agreement. This ratification vote is a tribute to the unceasing determination and matchless skill of our Negotiating Committee Chairman Gil Cates, our Creative Rights Negotiating Co-chair Martha Coolidge, our National Executive Director Jay D. Roth and the rest of our negotiating teams."

The newly ratified Basic Agreement (BA) and Freelance Live and Tape Television Agreement (FLTTA) will take effect on July 1, 2002.

		DGA Western Executive Director G. Bryan Unger points out contract intricacies. (Photo: Joe Coomber) Click picture for larger view.

Among the highlights of the economic terms of the agreement are:

• WAGE INCREASES
  With the exception of network prime-time programs, all minimum salaries and residual base rates will increase by 3.5% per annum in each year of the Agreements, effective July 1, 2002, 2003 and 2004.
  
  Directors' initial minimums for network prime-time programs (including residuals base rates) will increase by 3.0% per annum in each year of the Agreements, effective July 1, 2002, 2003 and 2004.
  
  
• FOX BROADCASTING
  Effective July 1, 2004, Fox Broadcasting Corporation will be considered a network for all purposes, including residual payments.
  
  
• FOREIGN RESIDUALS FOR TELEVISION PROGRAMS
  The 2002 Contracts add a fourth level of residual payments. In previous contracts, there were three separate levels: an initial residual payment and two additional payments to be made when certain Distributor's Foreign Gross amounts were met. Once those three payments were made, no more followed, regardless of the profitability of the show. The fourth level of residual payments added by the 2002 contract, extends into perpetuity, and consists of 1.2% of the Distributor's Foreign Gross in excess of a certain amount based upon the length of the program.
  
  
• MADE FOR BASIC CABLE RESIDUALS
  The improved residual schedule for programming made for basic cable gains more money faster for directors by increasing residuals for runs 2–5 by 40%.
  

  		DGA members attend meeting to review key contract points. (Photo: Joe Coomber) Click picture for larger view.

• THEATRICAL SEQUEL PAYMENTS
  The Director of a theatrical motion picture based on an original script will receive a payment of $20,000 if a sequel is produced, utilizing the same characters, etc. This is the first time such a concept has been achieved in the DGA Basic Agreement.
  
  
• RUNAWAY PRODUCTION
  No later than January 1, 2003, the AMPTP will convene a meeting with Employer representatives and representatives of the DGA, SAG, WGA, IATSE and Teamsters, AFTRA and other affected unions to discuss the problems of "runaway production" and ways of resolving or mitigating these problems, including possible contractual remedies.
  
  
• SAFETY
  When members of the shooting crew have worked 16 hours from crew call, the First Assistant Director may call a meeting to discuss safety issues involved with the continuation of production.
  
  The AMPTP will, as soon as practical, consult with DGA representatives for the purpose of issuing a safety "check list" to the Employers it represents. This "check list" should be distributed to Employers on or before February 15, 2002.
  
  This is the first time such provisions have been included in DGA contracts.
  

• INTERIM SETTLEMENT AGREEMENT
  

  		DGA Eastern Executive Director Christina Lomolino addresses East Coast members as Associate General Counsel Paul Harris and DGA Assistant Executive Director Fern Wakneen look on. (Photo: Elisa Haber) Click picture for larger view.

  The DGA and AMPTP agreed to an historic Interim Settlement Agreement that adapts existing agreements to the new technologies that are modernizing the method of television production. This new "blended contract" agreement will cover all prime-time dramatic programming regardless of whether it is shot on film, traditional videotape or digital video. The interim agreement will expire on June 30, 2005.
  The ISA applies to free television dramatic programs intended for initial broadcast on prime time, made-for-pay/home video dramatic programs of a type made for network prime time and basic cable "high budget" dramatic programs one half-hour or more in length.
  
  
• CREATIVE RIGHTS
  The DGA's Basic Agreement creative rights will now apply to all prime-time dramatic productions, regardless of the medium on which they are shot.

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