AFM In Three-Year Deal With Ad Biz

The American Federation of Musicians has negotiated a new three-year contract with the advertising industry, a $100 million package that includes hikes in wages, residuals and health-care contribution

(The Hollywood Reporter) -- The American Federation of Musicians has negotiated a new three-year contract with the advertising industry, a $100 million package that includes hikes in wages, residuals and health-care contributions.

The deal, reached in New York and announced Oct 15, runs through Oct. 17, 2007, according to the advertising industry's bargaining unit, the Assn. of National Advertisers/American Assn. of Advertising Agencies' joint policy committee on broadcast talent union relations. The agreement covers musicians who work in television, radio and Internet commercials.

"We were able to address the industry's justified concern for restraint and at the same time address the musicians' concerns over pension and health benefits," ad industry chief negotiator Ira Sheppard said.

The deal includes a 6% increase in wages and benefits over the contract's three-year term. It also includes a 2% hike in pension contributions. The deal now goes to members for ratification.

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