When and How to Engage a SAG-AFTRA Signatory for a Commercial
So you’re looking to hire SAG-AFTRA talent for your upcoming production.
You may already know that working with SAG-AFTRA talent requires more stipulations and costs than working with non-union talent.
What you may not know, however, is that in order to work with SAG-AFTRA talent, you have to either be a SAG-AFTRA signatory or engage a qualified SAG signatory company.
However, if your company or production agency is signatory to the SAG-AFTRA Commercials Contract, all your projects must feature SAG actors. In short? You can no longer take on non-union commercial projects… ever again. And that isn’t a viable option for many advertisers and producers.
So, what options do you have outside of becoming a SAG signatory? We’re covering everything you need to know below.
3 Ways to Engage SAG-AFTRA Talent
So, what are your options? To hire SAG-AFTRA talent for your upcoming commercial, you must do one of three things:
Become a direct signatory to the SAG-AFTRA Commercials Contract
Hire a qualified third-party SAG signatory company, such as CMS Productions
Sign a One Production Only Agreement (OPO) with SAG-AFTRA
Let’s analyze the pros and cons of each when it comes to your commercial’s production needs.
Become a SAG-AFTRA Signatory
Your first option is to become a SAG signatory— and it’s important to note that this will only be applicable to advertising agencies and brands. This option excludes most production companies.
Becoming a signatory infers that your production will follow all the rules and regulations related to SAG-AFTRA, which involves providing talent with various benefits, payment of residuals, negotiation of contracts, pension and health plans, and more. Of course, these regulations come with their pros and cons. So, let’s dive a bit deeper into those.
Pros of becoming a SAG-AFTRA commercial signatory→ Access to SAG-AFTRA talent - You get access to the best performing actors and talent in the industry. This includes over 160,000 SAG-AFTRA members; including well known celebrities, dancers, stunt performers, singers, voice over actors and more.
→ Waivers - Unlike third parties, as a SAG signatory company you get access to agreements and waivers that are not available to third party signatories. Some of these include:
Commercial Low Budget Digital Waiver
Influencer-Produced Waiver
Experimental Coverage Waiver for Non-Professional Endorsers
Cons of becoming a SAG-AFTRA commercial signatory
→ No more non union projects: Becoming a SAG signatory means all your future commercials must be SAG-AFTRA productions. When you become a signatory you are then bound to the terms of the Commercials Contract and can only hire SAG-AFTRA union performers. Your company will no longer be able to hire non-union talent for any future commercial productions.
→Impact on costs: As a SAG signatory, all of your productions are on the hook for residual issues, any future performer claims, and violations of working condition rules. SAG-AFTRA also requires all talent to be paid minimums for days of work. Additional costs also include residuals and Pension & Health (P&H). SAG commercials can quickly become more expensive.
→ Claims: Failure to comply with SAG-AFTRA rules and regulations according to the Commercials Contract can lead to a claim against your company. Any claims filed against you from talent puts more liability and responsibility on your team. If you don’t have the contact knowledge, this will become a challenge to manage in the future.
→ Withdrawal liability: In the case that you decide you no longer wish to be SAG-AFTRA signatory, you are bound to ERISA (Employee Retirement Income Security Act) laws which will follow you long after your contract term has expired with SAG-AFTRA. This means you can’t just decide you no longer wish to be signatory without potentially owing added fees to P&H Plans.
→ Knowledge of contract terms and regulations: There is a learning curve if you aren’t yet familiar with the contract terms and regulations. This includes an understanding of which agreements are best for your talent based on the scope of your production.
Hire a Third-Party SAG-AFTRA Signatory
Hiring a third party union signatory is a great way to allow you to hire SAG-AFTRA talent without having to bind all your productions to the SAG AFTRA Commercials Contract. A third party union signatory is one that is already signed to one or more SAG agreements and can provide signatory support to facilitate talent agreements directly with SAG-AFTRA. This allows you to avoid becoming a signatory while having the ability to take on non-union productions in the future.
Pros of hiring a third-party SAG-AFTRA signatory
→ Knowledge of contracts: When you outsource signatory support, you receive a team of experts who are well versed in all of SAG-AFTRA’s rules, regulations, and contract terms. With this knowledge, they are equipped to streamline your production’s hiring process.
→ Relationship with the union: Third-party union signatory’s have long-term relationships with SAG-AFTRA, which can greatly benefit your project.
→ Access to high profile talent: Through a third-party, you will receive access to all of SAG-AFTRA’s talent pool including celebrities and athletes, experienced actors, background actors, day performers, musicians, singers, dancers, stunt performers & drivers and more.
→ Streamline the process: Additionally, you can streamline your production’s talent hiring process as a group of experts handles the budgeting, negotiations, contract agreements.
→ Less work for you: Your third-party signatory should be involved from the beginning. This includes active involvement in:
Reviewing scripts and storyboards
Budgeting
Contracting
On-set responsibilities
Payment processing
Ultimately, this will remove a lot from your plate.
Cons of hiring a third-party SAG-AFTRA signatory
→ Involved from pre to post production: Third-party signatories must be engaged in the pre-production process according to the terms of the SAG-AFTRA Commercials Contract. In collaboration with advertisers or producers, third-party signatory companies assume all employer functions. Because of all these terms, your third-party signatory needs to be involved from the beginning.
Sign an OPO
Signing an OPO (One Production Only Agreement) allows for your production– as a non-signatory producer– to hire SAG-AFTRA talent on a project-by-project basis. Non-signatory advertisers and producers can sign up to three OPO’s.
Pros of signing an OPO
→ No strings attached: Signing an OPO doesn’t bind you to a term agreement, it simply covers you on a project-by-project basis. This means you still have the ability to continue to hire non-union performers for other projects.
Cons of signing an OPO
→ On the hook for any future claims. Your production will be held responsible for any claims made against your production.
→ Not a permanent solution. SAG-AFTRA is strict in having an in-depth understanding of SAG-AFTRA contract rules and regulations. Non-signatory clients can sign up to three OPO’s before having to either become a signatory or hire a third party to act as signatory.Conclusion: Should You Become a SAG-Signatory or Outsource to a Third-Party?
In summary, we see that there are different ways for you to work with SAG-AFTRA talent for your upcoming commercial projects.
How you choose to engage SAG-AFTRA talent, however, really comes down to what makes most sense for your productions long-term. And each option comes with its own set of pros and cons.
Becoming a signatory will allow you to work with SAG-AFTRA talent. But 100% of your productions moving forward must be SAG-AFTRA and you will no longer be able to produce non-union projects. Not to mention there’s still a lot of work and added costs to become signatory.
Signing an OPO is one way around this— but it isn’t a long-term solution. An OPO will still hold you accountable for future claims and is only applicable for up to three projects.
Hiring a third-party SAG-AFTRA signatory gives you the best of both worlds. It allows you to work with SAG-AFTRA talent without having to turn down non-union work in the future. Plus- it allows you to sit back and relax as a team of experts streamline the hiring process… saving your production time, money and headache.
Looking to engage a third-party SAG-AFTRA signatory? You’ve come to the right place. CMS Productions is signatory to the SAG-AFTRA Commercial, Corporate/Educational(Industrial) and Interactive Media contracts. We are happy to assist with helping you hire the best talent for your upcoming production. Contact us today to set up a consultation.
FAQS:
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A SAG-AFTRA signatory refers to an individual, entity or company that has signed an agreement with SAG-AFTRA. The signatory must then comply with the terms of the contract until its expiration. This means that the signatory cannot hire any non-union performers
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A company that is SAG-AFTRA signatory is signed to one or more SAG Contracts, and only works with SAG talent on all of their productions. They are bound to the terms of these contracts.
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SAG-AFTRA signatories are advertisers, advertising agencies and networks.
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In order for a corporation to become a SAG signatory there are certain actions they must take to do so:
The Corporation must agree to comply with SAG-AFTRA rules and regulations by entering into an agreement. In California, they will also need shareholders and directors approval for the corporation to enter into an agreement.
Complete SAG Company Information Sheet
To begin, submit a preliminary information form to the SAG-AFTRA organization.
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Remember, if one actor is a SAG AFTRA member, then all performers - including voiceover - need to be SAG-AFTRA members and paid accordingly.