Briefing

The ANA-AAAA Joint Policy Committee on Broadcast Talent Relations (the JPC) recently filed an arbitration request against the Screen Actors Guild (SAG) with respect to the SAG Producers Pension and Health Funds' issuance of new Multi-Service Commercial Allocation Guidelines, which was an attempt to increase the basis for which pension and health contributions are made by advertisers under the SAG Commercials Contract with regard to talent agreements that cover both broadcast and non-broadcast services. The JPC claimed that SAG has violated the 2003 Commercials Contract by unilaterally issuing these guidelines. The arbitrator recently ruled that allocations must be determined on a case-by-case basis and that SAG did not have the right to unilaterally set guidelines for allocations to union covered services in talent agreements.  The arbitrator also ruled that if a producer and SAG cannot agree on an allocation, the dispute must be resolved through arbitration, and not by a lawsuit under federal ERISA laws (which allows for draconian penalties)

TIP: SAG can no longer sue in disputes regarding allocations of union covered services in talent agreements, rather it must negotiate the allocation with the commercial producer and if negotiations break down, the dispute may only be arbitrated.