Guilds Split over Video Games: SAG and AFTRA Boards Recommend Acceptance of New Video Game Collective Bargaining Agreement; SAG Membership Rejects It

This continues to be an interesting year for entertainment labor negotiations. New SAG/AFTRA ad industry contracts, SAG’s new television and theatrical contract and studio agreement, an extension of the Non-Broadcast/Industrial and Educational agreement, not to mention infighting and lawsuits. And now there’s a new item – SAG and AFTRA’s separate negotiations with the videogame industry over voiceover work.

The unions, which had been negotiating with the industry separately, appeared to achieve some parity between their deals, and made a joint announcement earlier this month that agreements had been reached. The deals, if ratified, would expire March 30, 2011, and would provide for the following improvements over the current contract (set to expire in December):

  • A 3 percent wage hike for SAG (to match AFTRA’s current deal), and another 2.5 percent increase April 1 for both unions
  • A 0.5 percent increase in the pension and health contribution rate for SAG members, and an additional 0.2 percent next year for both unions
  • The establishment of a $100 liquidated damage for failure to give notice of “vocally stressful” work, and agreement to develop a set of guidelines for conducting vocally stressful work
  • A cap of $125,000 on contributions to the AFTRA Health and Retirement and SAG Pension and Health funds for performers paid more than $125,000 by a single producer in a single year for work done on the same game franchise

Both the SAG and AFTRA boards recommended acceptance of the contract, with AFTRA giving the contract “an overwhelming and strong” recommendation. However, SAG’s membership apparently feels differently – SAG members who work the contract voted it down, 73-42. One reason for the rejection was the inclusion of “atmospheric” provisions that would allow employers to use actors to perform up to 20 voices, of up to 300 words each, at the daily base rate, which some members saw as a reduction from current pay levels. 

SAG will now try to bring the video game companies back to the table to negotiate its deal, but the industry’s negotiators may require SAG to sweeten the deal before coming back. As for the AFTRA deal, a vote by AFTRA membership is currently underway.

So, How Do You, Like, Communicate With, Like, Kids?

The Federal Trade Commission staff will host a forum March 12, 2009 to gather input for its upcoming education program on advertising literacy for “tweens,” or kids who are 8 to 12 years old. At the forum, experts on advertising and marketing to kids will discuss a range of issues, including:

  • What kids experience in the commercial world
  • What kids understand about their experience
  • Which consumer education efforts will help kids to navigate better in the commercial world

The goal of the campaign is to educate kids on how to be better-informed consumers of information.

Why this matters: We’re not sure yet who is speaking at the event, but our hope is that we’ll hear from those who can actually shed some light on this important marketing segment. CARU has long lumped kids under 12 into one basket, with some very strange results. For instance, not so long ago, CARU was bringing actions against movie studios for advertising “Harry Potter” and “Star Wars” during shows that were attractive to “tweens” on the grounds that they were meant for children 13 and over. Luckily, Wayne Keeley’s CARU has taken a turn toward reality and has involved the MPAA in making better determinations as to which movies are appropriate for kids advertising. 

Thus, our hope is that this workshop will help demonstrate that older kids (in the 8-12 range) are very savvy both in terms of their emotional development and their maturity for purposes of distinguishing between advertising and editorial content. It would be a shame if the Commission puts up a series of paternalistic, anti-ad activists who think most kids should not be exposed to any commercial messages. We also hope that the workshop will focus on the key issue of “blurring” that impacts video game manufacturers, and anyone who uses advergames as a form of marketing to kids.