DGA Sets New Three-Year Commercials Contract

AP Photo/Reed Saxon

It creates a new low budget contract and the first program to encourage more diversity among commercial directors

The Directors Guild of America announced Wednesday that it has approved a tentative new national commercial contract that extends through Dec. 2017.

The new contact negotiated with Association of Independent Commercial Producers includes wage increases of 2.75 percent in the first year and 3 percent in the second and third years of the contract.

The DGA membership must still approve the deal by Dec. 1 when the current contract expires but that is expected to happen. The DGA board approved it Saturday.

Under the new deal employer contributions to the pension plan start with a one-quarter percent increase in the first year. After that time, the announcement says there will be “a significant increase” in contributions to the pension and health coverage and increases retirement benefits.

The new contract for the first time establishes a diversity program, to be developed and administered by the AICP. It is designed to expand opportunities of a more diverse group of commercial directors.

The DGA also agreed to create a new low budget commercial contract expected to bring in more work because it will offer more flexibility to “capture more commercial projects.”

It is also expected to increase work opportunities in commercials for directors in cities outside New York and Los Angeles.

“Members working in commercials represent a strong and steady portion of the DGA membership, and this contract will secure and grow this area of work for years to come,” said DGA president Paris Barclay.

Negotiations between AICP (and a DGA negotiating committee led by associate national executive director/eastern executive director Russ Hollander) took place in three separate periods between July and October.

Said Hollander: “We’re especially pleased to have secured the first-ever commercial diversity program and look forward to working with the AICP to strengthen the diversity of this vibrant segment of our industry.”

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