solidarity.us
ACTIVATE. EDUCATE. INOCULATE.
0

The Talent Agency "Franchise"

The Talent Agency “Franchise”

Why SAG-AFTRA negotiates employment contracts with employers but is not your talent agency.

As our labor union, SAG-AFTRA is responsible for creating and negotiating contracts with minimum terms of wages called “scale” and working conditions that apply to whole jurisdictions and types of work in film, television, commercials, new media, etc. We call that “covered” work, as in work covered by one of our contracts in a type of work under our union’s jurisdiction. Examples of work that are not covered by SAG-AFTRA: print modeling and live theater.

In order to hire SAG-AFTRA performers for covered work, a production must be a signatory, meaning they've agreed to use the SAG-AFTRA contract for their type of production.

Productions can’t offer you less than the union contract's minimum terms, but you can try to negotiate for MORE. This is where the value of agents comes in.

Agents provide two basic services: generating and managing work opportunities and negotiating for employment terms that are above union minimums, if possible.

For example, negotiating for more than basic union wages is referred to as negotiating for “overscale” pay.

As your labor representative, SAG-AFTRA could also serve as your personal talent agency; representing you to individual productions for specific jobs, and negotiating on your behalf. However, SAG-AFTRA does not currently operate in that space. Instead, it delegates its authority to represent its members to third-party agents, and in exchange, agencies have to agree to abide by over 80 pages of regulations, called a Franchise Agreement. SAG-AFTRA has two Franchise Agreement options: the 1991 SAG Rule 16(g) or 2002 AFTRA Rule 12(c).

Agencies that successfully undergo vetting by SAG-AFTRA and agree to the terms of SAG 16(g) or AFTRA 12(c) are then considered “SAG Franchised” or “AFTRA Franchised.” While any state-licensed agents legally and technically can and do represent our members, SAG-AFTRA membership rules require our members to only be represented by franchised agents. Also, franchised agencies must use legacy (meaning pre-merger) SAG or AFTRA agency contracts, the one you sign with an agent when you decide to work together.

So why do we have two different and legacy Franchise Agreements and agency contracts? And why are many of our members represented by non-franchised agents?

The 2002 Breakdown with the ATA

ASSOCIATION OF TALENT AGENTS (ATA)
Since 1937, the Association of Talent Agents (ATA) has been and remains the official trade association of talent agencies across the U.S., responsible for legislation, advocacy and negotiating agency franchise agreements with the major entertainment unions, including SAG-AFTRA. Over 100 agencies, including the Big Four: WME, CAA, UTA, and ICM, are members.

The ATA also negotiates on behalf of the members of the National Association of Talent Representatives, or NATR, for agencies in New York.

9255 Sunset Boulevard, Suite 930, Los Angeles, CA 90069 (310) 274-0628 | info@agentassociation.com

The Franchise Agreement used by SAG was SAG Rule 16(g), which limited talent agencies to no more than a 10% investment in production companies, in addition to other restrictions. In 2000, the ATA asked SAG for a waiver (a contract exception) to increase that amount to 20%. SAG underwent negotiations to consider their request.

Unable to reach an acceptable end result, the ATA demanded re-negotiation of the entire Franchise Agreement, in which their opening proposal was a 49% maximum investment in production companies and broadening the types of residuals upon which they could charge commission. A negotiated agreement was reached with a maximum 20% investment in production with several fences built around the concept. Then, the new Franchise Agreement was sent to the members of SAG for ratification. Meanwhile, the AFTRA Board approved it, which became AFTRA Rule 12(c).

The members of SAG voted down the new agreement, leaving SAG and the ATA agencies without a Franchise Agreement and immediately making all ATA member agencies unfranchised. Technically SAG members could no longer be represented by them due to SAG Membership Rule 16(A), which required members to only deal with franchised agents.

In response, SAG suspended Rule 16(A) with respect to ATA agents only with the intended goal of negotiating a new franchise agreement, but the ATA declined a new negotiation. Neither SAG nor SAG-AFTRA have returned to the negotiating table with the ATA since 2002, leading to the WGA’s successful battle against agency production & conflicts of interest in 2019-2020.

As for agency contracts, the ATA took a non-conforming contract called the General Services Agreement, or GSA, and got it re-approved by the California Labor Commission and the New York Department of Consumer Affairs, and proceeded to use it when signing performers for representation, instead of the SAG or AFTRA agency contracts. The terms and conditions of a standard 3-page GSA favor the agent. Whereas our Franchise Agreements and the SAG and AFTRA agency contracts contain over 80 pages of terms and conditions that favor and protect our members. Members should be fully informed and educated as to the scope and long term effect of GSAs before signing.