Of prime importance going into those negotiations was whether the JPC, which negotiates on behalf of the advertising industry, would respond to the continuing concerns voiced by signatory agencies and advertisers that they cannot compete with their non-union counterparts from a talent cost standpoint.
With the changing dynamic of the advertising industry, most notably advertisers putting multiple advertising agencies on their rosters, the playing field most in need of leveling is the one played on by the signatory agencies.
And thus of particular concern going into this year’s negotiations was whether there was more that could be done to help those agencies stem the loss of business, both existing and prospective, to non-union agencies.
The big splash in the new Commercials Contract is the Alternative Compensation Structure, or ACS, which provides for different upfront talent payment packages—essentially, flat fees paid up front—that are intended to simplify compensation calculations and provide potential cost savings to signatory advertisers.
In terms of its potential competitive impact, the ACS is available only to signatory advertisers and agencies, which the JPC touts as helping to “level the playing field,” presumably because the ACS cost savings are not available to non-union advertisers that engage SAG-AFTRA talent through third-party signatories.
The ... contract contains some new provisions intended to ease the strain from a competitive standpoint.