Fall 2018

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For Members N E W S , I N F O R M AT I O N A N D B E N E F I T S 16 SAG-AFTRA | Fall 2018 | T he SAG-AFTRA National Board has approved the successor agreements to the 2014 Producer-SAG-AFTRA Television Animation Agreement and the 2014 Producer-SAG-AFTRA Basic Cable Agreement for Animated Motion Pictures and the recently negotiated Sound Recordings Code. The unanimous votes came during the board's regularly scheduled two-day plenary Oct. 20 and 21 in Los Angeles. The TV Animation Agreements cover animated programs produced for television, including network television, basic cable and streaming platforms such as Hulu, Netflix and Amazon Prime. It includes performers who do voiceover and sounds effects in animation. The new deal will continue through June 30, 2020. Highlights of the TV Animation Contracts deal include: • Wage increases and benefit contribution rate improvements on par with the gains achieved in live action negotiations: » A 2.5 percent increase to minimums and 0.5 percent increase in the contribution rate to the SAG-Producers Pension Plan and AFTRA Retirement Fund effective Sept. 16, 2018. » A further 2.5 percent increase to minimums and 0.5 percent increase in the contribution rate to the SAG-Producers Pension Plan and AFTRA Retirement Fund effective Jan. 1, 2019. » A further 3 percent increase to minimums effective July 1, 2019, with the option to redirect 0.5 percent of that increase to the contribution rate to the SAG-Producers Pension Plan and AFTRA Retirement Fund. • The improved terms and conditions that were negotiated in 2017 for live action programs produced for subscription-based streaming platforms like Netflix, Amazon and Hulu will apply to animated programs produced for those platforms with some modifications. Highlights of the Sound Recordings Code include: • Increase minimum wages by 3 percent Jan. 1, 2019, and 2020 and by 2.5 percent Dec. 31, 2020. • Increase health and retirement contributions to 13 percent effective July 1, 2019. • Increase the portion of streaming payments subject to health and retirement contributions from 15 percent to 50 percent. • Increase the foreign traditional use conversion fee for most licenses from 3 percent to 4 percent with substantially increased minimum and maximum payments. • Substantially increase the maximum health and retirement contribution for groups of six or more and index it to future increases in eligibility requirements. • Streamline the licensing and performer payment processes for foreign licenses, especially for tracks licensed into commercials. The new Sound Recordings Code is retroactive effective Jan. 1, 2018, and expires Dec. 31, 2020. The major record labels covered by the agreement include Warner Bros. Records, Atlantic Recording Corporation, Sony Music Entertainment, Universal Music Group Recordings, Capitol Records and Hollywood Records (Disney). The contract includes members who work as recording artists, background vocalists, narrators, announcers and comedians. Following the board's approval, both agreements now go to the union's membership for ratification. In keeping with the board's prior policy resolution, the national referendum for the TV Animation Agreements and the Sound Recordings Code will be conducted via an online vote to ratify the agreements. Traditional paper ballots will also be available on request to any eligible voter who asks for such a ballot. Members who are eligible with earnings under these agreements will receive a postcard with ballot instructions explaining how to vote electronically or how to request a paper ballot. The postcard for the TV Animation Agreements was mailed to members on Oct. 29 with a deadline of Nov. 19. Postcards for the Sound Recordings Code were to be mailed to members on Nov. 13, 2018. Ratification votes received by the voting deadline of Dec. 4 (electronically or by mail) will be tabulated on the same day. Animation Agreements, Sound Recordings Code Go to Member Vote

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