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Business News (more headlines) 06-14-2014

AFM And Advertising Industry Reach New Three-Year Deal

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Representatives of the American Federation of Musicians of the United States and Canada (AFM), the Association of National Advertisers (ANA) and the American Association of Advertising Agencies' (4A's) Joint Policy Committee on Broadcast Talent Union Relations (JPC) announced that a successor agreement has been reached covering the services of professional musicians who record music tracks in the production of Television, Radio and Internet commercial announcements. The parties began negotiating in February of this year to modify the contract previously agreed to by the parties in 2009.

The new "Jingles and Spot Announcements" agreement will run three years and provides for an upfront six percent (6%) increase in wages applicable for recording sessions and reuse payments. The contract also provides needed improvements to health and welfare payments, cartage payments, sideline services, Internet wages, and pension contributions.

In addition, the parties reached agreement on the addition of innovative provisions, such as a waiver for certain types of Internet productions, and a new structural feature which permits advertisers to pay an upfront fee for 52-week initial soundtrack use and reuse cycles covering all media.

"We have concluded an exceptional and progressive agreement with the Advertising Industry that we believe achieves our goals, both economically and structurally," said AFM International President Ray Hair.

"These negotiations have been a positive and productive step towards a partnership with commercial musicians and the AFM. I am pleased to have achieved these important industry goals in key areas and I want to thank the members of our negotiating team: my partners, Douglas Wood and David Weissman, and Kathleen Quinn of the 4A's. I look forward to the ratification by their membership," said Joint Policy Committee Lead Negotiator Stacy K. Marcus.

The agreement will be submitted for ratification to rank and file musicians, a process that is expected to conclude in sixty days. While all terms and conditions of the new contract are effective immediately, the industry will have 60 days following ratification to implement the new terms.

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