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American Federation Of Musicians Signs Two Year Contract Extension With Advertising Industry
The American Federation of Musicians (AFM) and the advertising industry's ANA/AAAA Joint Policy Committee on Broadcast Talent Union Relations (JPC) today announced an agreement on a two-year contract extension, effective October 17, 2007. The extension agreement must now be ratified by AFM membership, as well as approved by the boards of both ANA and AAAA. Key terms of the agreement are as follows: * A wage increase of 4.5 percent * A Health & Welfare (H&W) contribution increase of 1 percent * Additional H&W contributions for each recording session * Contract coverage for the recording of music for new media "It was essential to the hardworking and talented musicians that they receive an appropriate increase in wages and health and welfare contributions, as well as specific contract provisions that recognized the growing importance of the Internet and new media as distribution channels for commercial messages. This agreement fairly addresses these important needs," said Thomas F. Lee, president of the AFM. "We are grateful for the understanding and businesslike way that the union handled this negotiation," said Douglas Wood, lead negotiator for the JPC and a partner at the law firm of Reed Smith. "I think both parties realized we are entering a new era of electronic communication. It will bring great opportunities as well as unforeseen problems. This new contract has shown us we can work together to our mutual benefit."
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