Actors Vote to Strike Over Advertising Pay

Actors voted late Tuesday to strike against advertising agencies as talks between their unions and industry representatives stall, mainly over how much actors will be paid for commercials shown on cable TV.

West Coast leaders of the two actors unions, the Screen Actors Guild and the American Federation of Television and Radio Artists, formally rejected the latest offer from the ad agencies and set May 1 as the date for a possible strike. Over the weekend, the eastern faction of the unions did the same.

Although the latest developments increase the odds of a strike, they don’t guarantee one. SAG negotiations often come down to the wire before resolving. Indeed, the May 1 date is seen by some insiders as a way to leave time for a settlement.

Three years ago, actors appeared close to going on strike against ad agencies, but issues were resolved. Actors last went on strike over commercials 12 years ago in a three-week walkout.

Still, any significant work stoppage would ripple through Hollywood’s economy as the filming of TV commercials in recent years has become one of Southern California’s growth industries. SAG members last year received nearly $630 million from commercials, while AFTRA members got nearly $85 million from TV and radio ads.

The actors believe they have been shortchanged as cable TV markets have exploded. They would like more money for ads that run on cable channels, specifically a “pay-per-play” formula to give them more money the more times an ad runs over a 13-week period. That system is similar to one that actors have for ads airing on network television.

Ad industry executives argue not only against higher pay for cable, but for an overhaul of the entire payment system. The erosion of the large network audience makes the “pay-per-play” system uneconomical, they say.

Under an ad industry’s proposal, actors would receive $2,575 for unlimited airings of commercials on networks. Under the present system, an actor on a national commercial speaking a line gets $478.70 for an eight-hour workday, then is paid additional money that slides from $46.50 to $122.70 an airing.

Actors in commercials on cable TV receive a flat fee from $478.70 to $1,014, with higher payments received when ads run on more popular channels such as ESPN or CNN. The industry has offered to increase the top cable pay to $1,627, arguing that the jump will make up for any amounts actors lose if they accept a flat fee for network airings.

Actors also would like a formula established to pay them for ads run on the Internet.

The unions have been negotiating with a panel representing two ad agency groups, the Assn. of National Advertisers and the American Assn. of Advertising Agencies. The contract expired March 31, but both sides have agreed to work during talks.

The negotiations have been viewed as the first big test for SAG’s new leadership under actor William Daniels, who ousted ex-chief Richard Masur last year after a bitter campaign that included accusations by Daniels’ supporters that SAG was too soft during negotiations.