2 Record Firms Agree to Follow ‘50s Contract
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Two music companies accused of paying Latino musicians substandard salaries and benefits have agreed to abide by a contract governing compensation for mainstream artists, an attorney for the American Federation of Musicians said.
EMI Group’s EMI Latin and AOL Time Warner Inc.’s WEA Latina have agreed to execute the Phonograph Record Label Agreement and all related agreements, said federation attorney George Cohen.
That contract, negotiated in the 1950s, provides a professional pay scale for musicians based on talent and budget, and provides Social Security payments, a share of record sales, pensions and health payments. Some Latino musicians say their compensation is far inferior to that of mainstream artists.
Calls to the companies’ attorney, an EMI Latin spokeswoman and the WEA Latina president were not immediately returned.
The agreement comes three days before the Congressional Hispanic Caucus is set to hold a hearing in San Antonio with Latin label representatives to discuss the pay gap.
EMI shares fell 57 cents to $11.23 in over-the-counter trading. AOL Time Warner fell 75 cents to close at $36.75 on the New York Stock Exchange.
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