The Directors Guild of America has successfully negotiated a new three-year collective bargaining agreement with the Association of Independent Commercial Producers (AICP). A tentative agreement on a new national commercial contract was reached on September 14, 2005. This new commercial contract, if ratified by the DGA Membership, would result in immediate wage increases over a number of DGA categories working in the genre, as well as other gains designed to protect both economic and creative rights of those who work in the commercial area. The existing National Commercial Agreement (NCA), which was extended for one additional year, will expire on October 31, 2005.
“I am proud of the results achieved by the Commercial Negotiating Committee,” said DGA President Michael Apted. “This agreement has important new protections and benefits, including substantial increases in health plan contributions and minimum rates for directors and assistant directors.”
Under the proposed new NCA:
- The minimum rate of pay for Commercial Directors would be increased by five percent each year of the Agreement. Commercial 1st ADs would receive an immediate outsized increase of 21%, and an increase of 3% for each subsequent year. Commercial 2nd ADs would receive an immediate 5% increase, effective November 1, 2005, and an increase of 3% for each subsequent year. The commercial producers agreed to a general increase in employers' health plan contributions from 7.5% to 8.5%.
- The DGA also won gains in “Presumed Salaries” which will result in significant increases in retirement benefits from both the Basic and Supplemental Plans for all members who receive contributions based upon presumed earnings.
- The DGA and AICP resolved a longstanding dispute over Unit Production Manager Staffing. Pursuant to a Sideletter that will be added to the NCA, commercial producers will be required to employ a UPM on any commercial where all or substantially all of the UPM duties set forth in the Agreement are performed by one person and that person has the same overall responsibility as a UPM under the Basic Agreement. The AICP further agreed that individuals who have been employed and covered as a UPM by a particular commercial producer on a regular basis will continue to be employed as a Unit Production Manager by that commercial producer.
- Other gains included an agreement to make the New York Assistant Director Training Program, a stronger vehicle for training individuals for careers as Assistant Directors in the commercial industry, new Low Budget commercials, salaries for Directors and other DGA-represented Employees, the future establishment of a joint AICP/DGA Diversity Committee to promote the employment of women and ethnic minorities in DGA-represented categories on television commercials, and the establishment of a joint AICP/Commercial Directors Creative Rights Committee to explore ways to implement Directors' fullest possible creative participation in the post-production editing process and added scenes and retakes, and make appropriate recommendations regarding same for presentation to the advertising agencies.
Negotiators from both sides of the aisle viewed this settlement as a landmark achievement.
Negotiating team member and DGA commercial director Rob Lieberman noted, "Negotiations with the AICP this year were extraordinarily productive. Every issue was discussed on the basis of what’s best for the people doing the job. Each had their own point of view, but the outcome was for the benefit of both the DGA and the AICP, knowing full well that we need each other."
“The Guild’s negotiating committee was intent on finding creative solutions that benefit our members, while simultaneously enabling production companies to compete in the global marketplace,” said Eastern Executive Director Russ Hollander. “Working together with the AICP, we were able to reach a deal that will benefit both sides of the bargaining table – it means more work for the companies and more jobs for our members.”
"We're extremely pleased that we were able to reach tentative agreement with the DGA on this contract," said Matt Miller, President and CEO of the AICP. "In many ways our negotiations with the Guild reflects the close working relationship that commercial producers share with our directorial partners every day. Thanks to that relationship, and the Guild's understanding of the unique nature of commercial production, we were able to make headway on issues that will allow our member companies to better compete in the global marketplace while continuing to afford members of the Guild important protections in the workplace."
"The efforts of the DGA Negotiations Committee: Tim Abshire, Lee Blaine, Fred Childress, Rob Jackson, David Jellison, Rob Lieberman, Jon Lowe, Michael Schlenker, Neil Tardio Sr. as well as the AICP negotiators are to be commended," said DGA National Executive Director Jay D. Roth. "They have done an excellent job of negotiating important new provisions that will protect our members’ rights and improve commercial production."
The term of the new commercial contract would be November 1, 2005 to October 31, 2009. On Saturday, September 24, 2005, the DGA National Board approved the new contract and sent it to the membership for accelerated ratification.
