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Actors unions reach agreement with ad agencies

  • Story Highlights
  • SAG, AFTRA have tentative deal with advertising agencies
  • Deal addresses new media concerns
  • Union head: "a major victory"; agency rep: "very fair and balanced agreement"
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By Alan Duke
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LOS ANGELES, California (CNN) -- The two largest actors unions reached a tentative agreement on a new work contract with advertising agencies early Wednesday morning, just as the old agreement expired.

Actors will get a raise under the three-year deal, but it also provides for a test of new models for determining how they might be paid in the future as more commercials move to the Internet and mobile devices.

"Our gains include establishing the first-ever payment structure for made-for-the Internet and new media commercials and significant increases in wages during a very troubled global economy," said Sue-Anne Morrow, the Screen Actors Guild's (SAG) top negotiator.

Roberta Reardon, president of the American Federation of Television and Radio Artists (AFTRA) said it was "a major victory" for the unions.

A spokesman for the ad groups -- the American Association of Advertising Agencies (AAAA) and the Association of National Advertisers (ANA) -- called it "a very fair and balanced agreement."

The SAG and AFTRA boards must approve the contract before sending it to their full memberships for a vote.

SAG members working on movies and television shows still don't have a contract and the possibility of a strike remains. Their contract with the Alliance of Motion Picture and Television Producers (AMPTP) expired last summer and talks have been deadlocked for months.

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