Finance

DGA, AICP Reach Commercial Accord

New contract includes pay, pension contribution increases 11/07/2017 9:42 PM Eastern

The Directors Guild of America says it has a tentative deal with the Association of Independent Commercial Producers on a new commercial contract.

The DGA National Board has approved the contract, but it has to be voted on by the rank and file.

According to DGA, the contract includes:

1) a 2.5% wage increase in the first year, and 3% bumps in each of the second and third years.

2) a permanent increase in employer contribution rate to the pension plan--.5% in the first year from 5.5% to 6%.

3) Mandatory training for assistant directors and unit production managers.

AICP has committed to continue to develop its director diversity program.

Negotiations began in August.

“In the face of a rapidly changing advertising industry, our Commercial Negotiations Committee achieved a solid agreement securing significant benefits for our members working in commercials,” said DGA president Thomas Schlamme in a statement. “This contract will grow this area of work for years to come.”

"“We are pleased that the new agreement will keep our members working, securing their retirement benefits and important wage gains – while also allowing producers the flexibility they need to keep this global industry thriving," said AICP associate national executive director Bryan Unger.

AICP members are responsible for 85% of all U.S. commercials nationally, whether for broadcast or "non-traditional" use.

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