SUMMARY OF CHANGES TO 2014 NATIONAL COMMERCIAL AGREEMENT

TERM:

December 1, 2014 through and including November 30, 2017.

COMPENSATION:

Minimum rates of pay for all Employees will be increased by three (3) percent on November 30, 2014, by an additional three (3) percent on November 29, 2015 and an additional three (3) percent on December 4, 2016.

PENSION & HEALTH CONTRIBUTIONS:

One of the Guild’s top priorities in these negotiations was to ensure Commercial Directors receive contributions sufficient to provide they will continue to be covered under the appropriate tier in the Health Plan and to increase contributions to the Pension Plan to grow their retirement income. The Guild accomplished both objectives.

The presumed salary upon which contributions are made on behalf of Non-Principal Directors (i.e., those with less than a ten (10) percent equity interest in their production company) will be increased by five (5) percent each year of the Agreement. Over the life of the Agreement this will result in a compounded increase of 15.76 percent to the contribution base to the Pension and Health Plans for Non-Principal Directors. The presumed salary for Principal Directors, Principal and Staff Assistant Directors and Principal and Staff Unit Production Managers will increase by three (3) percent each year of the Agreement. In addition to securing the appropriate level of health coverage for Directors, the increases in the presumed salaries will result in significantly larger retirement benefits from both the Basic and Supplemental Pension Plan.

(Presumed salaries apply to commercial producers who have designated the AICP to represent them in contract negotiations. All other commercial producers remit contributions based upon actual salary.)
Additionally, the Guild achieved a four (4) percent increase in the contribution rate to the Health Plan on vacation pay from 10.5 percent to 14.5 percent for Assistant Directors and Unit Production Managers. Contributions on vacation pay now conform with the Basic Agreement.

DIVERSITY:

Another chief objective in the negotiations was to address the lack of diversity in the commercial industry. In the negotiations, we obtained the Association of Independent Commercial Producers’ (AICPs’) commitment to establish a Commercial Director Diversity Program by July 1, 2016. The Program, which will be created and maintained by the AICP, will provide talented minority and women Directors opportunities to foster relationships with high-level executives in the commercial production industry, shadow experienced Commercial Directors on the set and further develop their craft. Representatives of the DGA will meet with the AICP to cooperate in their efforts to develop, support and evaluate the Program. Beginning on November 30, 2014, Commercial Producers will contribute a quarter (0.25) percent of payroll to raise the financing necessary to implement the Program. This rate will decrease to 0.15% of payroll on December 1, 2015, which will provide sufficient funds to sustain the Program.

CREATIVE RIGHTS COMMITTEE:

The DGA and AICP agreed to establish a joint committee exploring issues pertaining to Directors creative rights in commercials. Recognizing changes to trends within the advertising industry, the parties will discuss opportunities to enhance valuation of the Director and promote their role in creating a successful campaign.

LOW BUDGET COMMERCIALS:

The Guild agreed to modify provisions pertaining to low budget commercials to allow production companies represented by the AICP to compete more effectively for low budget commercials in an ever expanding and challenging marketplace and thereby create more employment opportunities for DGA members working in the commercial industry. The modifications will also support the Guild’s organizing efforts to sign more companies to the Agreement.

The new AICP low budget agreement includes four tiers based on the budget per shoot day:

Budget Level	Rate
(1) Less than $50,000 per shoot day	Individually negotiated
(2) $50,000 - $80,000 per shoot day	Individually negotiated
(3) $80,000 - $100,000 per shoot day	Individually negotiated but no less than 80% of scale
(4) $100,000 - $125,000 per shoot day	Individually negotiated but no less than 90% of scale
Total production costs cannot exceed $625,000 per commercial.

Pension & Health Contributions:

Pension and Health contributions for low budget commercials in Tier One will be on actual negotiated salaries for all members. Contributions on behalf of Directors will be based on 60 percent of the presumed salary for commercials in Tier Two, 80 percent in Tier Three and 100 percent in Tier Four. Contributions on behalf of ADs and UPMs in Tiers Two, Three and Four will be paid on scale.

Other Terms and Conditions of Employment:

As with the Guild’s other low budget agreements, we have substantially relaxed work rules on the lowest tier of commercials. The only provisions of the National Commercial Agreement that apply to commercials with a per shoot day budget below $50,000 are Article 1 (Recognition and Guild Shop), Article 2 (Disputes), Article 3 (Pension and Health Plans), Article 4-109 (Copy of Spot), 4-110 (Work In Excess Of 18 Hours), Article 5-102 (First Assistant Director Staffing), 5-201 (D) (Notification Of Rate), 5-301 (Work Day), 5-304 (Work In Excess Of 18 Hours), 5-305 (Rest Period), 5-313 (E) (Federal And State Labor Law) and Article 7 (Miscellaneous Provisions). Overtime will be paid in accordance with applicable federal and state law. ADs and UPMs must be on a Commercial Qualification List.

On all other low budget commercials, all terms and conditions of employment apply except the contribution to the Training Program and provisions regarding class of air travel for Directors, ADs and UPMs.

EMPLOYMENT OPPORTUNITIES FOR MEMBERS WHO LIVE OUTSIDE NEW YORK AND LOS ANGELES:

The Guild negotiated a number of provisions intended to increase employment opportunities for members who live outside New York and Los Angeles.

First, with respect to commercials beginning production outside New York or Los Angeles and completing production in New York or Los Angeles, the Producer may continue to employ the AD or UPM who was initially employed outside New York or Los Angeles provided the AD or UPM is on the Third Area Qualification List in the appropriate category.

Second, the provisions in the Basic Agreement on Production Centers will be incorporated into the National Commercial Agreement. As a result, DGA members who work on commercials and do not live in a production center may designate Los Angeles, New York, Toronto or Vancouver as their production center and work as a local hire in both their designated production center and within reasonable commuting distance of their home.

Third, when a commercial begins production in one geographical production area and continues production in another distinct geographical production area, the Producer may, at the Director’s discretion, hire a qualified 1st AD who resides in the area where production is continued. A distinct geographical area is defined as being 200 or more miles from the previous geographical production area.

MISCELLANEOUS:

The Guild and AICP negotiated several minor modifications to existing contract provisions to reflect changes within the industry or to codify existing practice. These include:

First Assistant Director Voluntary Resignation: Keeping with the Guild’s existing practice, when the First Assistant Director voluntarily resigns from a project the replacement First Assistant Director will be paid only for prep days actually worked. This provision does not apply when the First Assistant Director is terminated by the Employer.
Idle Days: With notice to the Employee, Producers will not be required to pay for one idle day per work week on distant location when no work is performed. Pension and health contributions will be paid on scale. If ADs or UPMs perform any work on the scheduled idle day they will receive their daily rate of pay.
Fifth Day Extending Into Sixth Day: The parties agreed to remove contract language providing that work beginning on a fifth day and continuing into a sixth day prior to completion of twelve hours will be paid for at the premium rate.
Meal Allowance: The parties agreed to delete the provision requiring a $30 meal allowance when the work day begins before 9:00 AM, continues past 7:30 PM and a dinner meal is not provided.
CPLF – Electronic Filing: The Guild and AICP agreed to a housekeeping change permitting the Commercial Project Listing Form (CPLF) to be submitted electronically.
New York Sick Time Act: Consistent with the Guild’s other National contracts, the Guild agreed that New York City’s Earned Sick Time Act will not apply to employees covered by the National Commercial Agreement. The Guild agreed to the waiver in consideration of the fact that DGA members receive benefits under the Agreement that far exceed those provided for in the Act.

Memorandum of Agreement for the DGA National Commercial Agreement

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