On Saturday, October 24, the DGA's National Board of Directors voted unanimously to send the tentative agreement for a new National Commercial Contract to the membership for ratification.
The tentative agreement, reached at 1:45am on October 16 at the conclusion of negotiations between the DGA and the Association of Independent Commercial Producers, Inc. (AICP), covers a two-year term from December 1, 2009 through November 30, 2011 and includes salary increases, the adoption of a code of preferred practices on creative rights, and provisions protecting and securing pension and health coverage for directors.
"I'm very pleased by the outcome of the commercial negotiations, especially considering the state of advertising in this economy," said DGA President Taylor Hackford. "By working together with the AICP, we were able to find solutions that will benefit both sides of the table, ultimately providing more work for all of us."
"The new agreement contains important changes that secure health coverage for a large number of members in commercials, the adoption of a new set of creative rights for commercial directors and an important clarification on the scheduling of the First Assistant Director's tech scout," said Russell Hollander, Eastern Executive Director of the DGA.
Despite the very difficult economic environment confronting the advertising production industry, the negotiating committee secured a four percent increase in minimum rates of pay for Directors, Assistant Directors and Unit Production Managers that will take effect on November 1, 2010.
The committee also secured significant gains in pension and health benefits for those members for whom contributions are made on a presumed salary. One of the Guild's top priorities was to ensure that Commercial Directors receive sufficient contributions so that they qualify for the appropriate tier in the Health Plan. The commercial producers agreed to increase the presumed salary upon which contributions are based by three percent on Decemeber 1, 2009 and by an additional three percent on November 1, 2010. In addition, these increases will result in considerable enhancements in retirement benefits for all members who receive contributions based upon presumed earnings.
Another significant highlight of the Agreement is the adoption of a Code of Preferred Practices on Directors’ Creative Rights. The Code is intended to facilitate a change in culture concerning the role of the Director in commercial production. It sets forth guidelines for agencies, producers and Directors to follow with respect to treatments, selection of key personnel and increased involvement of the Director in the post-production process.
The Agreement also contains modified low budget provisions intended to encourage commercial producers to expand into this market; reaffirmation of the producer's responsibility to schedule tech scouts so that they do not interfere with the First Assistant Director's preparation time, and a small number of other provisions related to travel and mileage reimbursement.
"The AICP is delighted to have reached a tentative agreement with the DGA for this new contract," said Matt Miller, President and CEO of the AICP. "The outcome reflects the unique partnership between commercial producers and the Guild. This continued commitment to work cooperatively allows us to address the unique circumstances of the times, helping to ensure that the commercials industry, AICP Members and its key employees play a relevant role in the evolving advertising business."
The ratification ballot was sent out to members on Wednesday, November 4 and must be returned to the Guild's Accountant's office no later than Monday, November 30, 2009.
