American Federation of Musicians Signs Two Year Contract Extension with Advertising Industry

Press release
Source: Carmen Group for the AFM

The American Federation of Musicians (AFM) and the advertising industry’s ANA/AAAA Joint Policy Committee on Broadcast Talent Union Relations (JPC) today announced an agreement on a two-year contract extension, effective October 17, 2007. The extension agreement must now be ratified by AFM membership, as well as approved by the boards of both ANA and AAAA.

Key terms of the agreement are as follows:

· A wage increase of 4.5 percent

· A Health & Welfare (H&W) contribution increase of 1 percent

· Additional H&W contributions for each recording session

· Contract coverage for the recording of music for new media

“It was essential to the hardworking and talented musicians that they receive an appropriate increase in wages and health and welfare contributions, as well as specific contract provisions that recognized the growing importance of the Internet and new media as distribution channels for commercial messages. This agreement fairly addresses these important needs,” said Thomas F. Lee, president of the AFM.

“We are grateful for the understanding and businesslike way that the union handled this negotiation,” said Douglas Wood, lead negotiator for the JPC and a partner at the law firm of Reed Smith. “I think both parties realized we are entering a new era of electronic communication. It will bring great opportunities as well as unforeseen problems. This new contract has shown us we can work together to our mutual benefit.”

About the JPC

The Joint Policy Committee (JPC) is a multi-employer bargaining unit formed in 1962 for the purpose of representing the advertising industry in negotiating with the Screen Actors Guild (SAG), the American Federation of Television and Radio Artists (AFTRA) and the American Federation of Musicians (AFM) over wages and working conditions of actors and musicians engaged in making advertising messages to be transmitted publicly by television and radio. Over time, contracts have been modified to recognize the emergence of new media as advertising distribution platforms. In addition to functioning as a bargaining unit, the JPC comprises experts drawn from the membership of the Association of National Advertisers (ANA) and the American Association of Advertising Agencies (AAAA) who provide guidance to the advertising community's chief negotiator with regard to the potential impact of proposed contract terms. The JPC also has representative trustees on the boards of the pension, health and welfare plans of the unions with which it negotiates.

About AFM
Founded in 1896, the American Federation of Musicians of the United States and Canada (AFM) is the largest organization in the world dedicated to representing the interests of professional musicians. With more than 90,000 members, the AFM represents all types of professional musicians, including those who record music for sound recordings, film scores, radio, television and commercial announcements, as well as perform music of every genre in every sort of venue from small jazz clubs to symphony orchestra halls to major stadiums. Whether negotiating fair agreements, protecting ownership of recorded music, securing benefits such as health care and pension, or lobbying legislators, the AFM is committed to raising industry standards and placing the professional musician in the foreground of the cultural landscape.

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