ACTRA and representatives of the advertising community are scheduled to meet Dec. 5-6 to continue negotiating a new contract that is more flexible and responsive to the realities of the Canadian commercial production industry.

Negotiations have been underway since August after actra’s year-long contract with the advertising community ran out.

Representatives from actra, the Association of Canadian Advertisers and the Institute of Canadian Advertising stress that negotiations are going smoothly, but there seem to be some difficult issues on the table.

Because both sides are in the middle of negotiations, insiders are hesitant to discuss the issues at hand, but an industry insider who asked not to be identified, says rates for actra commercial talent are being examined.

Canadian advertisers have the added financial burden of creating commercials in two languages and simply don’t have the budget to pay talent on scale with actra’s American counterpart, the Screen Actors Guild of America, he says.

There is also a significant difference in actra rates for independent contracts on film and television productions versus commercial assignments, and that needs to be addressed, he says.

The agency side is advocating fair compensation for key commercial performers and removing regulations that render a recognizable extra on the spot eligible for higher wages. As it stands, if an extra is recognizable in 16 frames, he/she qualifies as a silent on-camera performer and receives compensation on par with the key players, says the source.

‘It’s difficult when you have to send a supplementary estimate to the client to pay this person an extra $1,000, even though he isn’t really contributing to their message. If you upgrade the session fee and residuals, it ends up being a lot of money,’ he says.

The issue of regional discounts is also on the table. As the contract stands, a discount on talent wages is available if a spot airs in Ontario, but excludes Toronto. Airing in Toronto nullifies the discount.

Most national advertisers aren’t eligible for the fee reduction, but the rules mean smaller advertisers like the Canadian National Exhibition and the Ontario Jockey Club pay the same rates as the big players, and that’s not fair, advertisers and agencies claim.

Clients and some production houses are taking steps to work around the agreement.

Some clients are reputedly going directly to broadcasters to produce commercials because they can use their own resources and staff, bypass the union, and make the project more cost-efficient.

One production house insider, who also requested anonymity, says, ‘Sometimes we just bypass the issues altogether when we’re shooting and use only American talent. I don’t feel good about doing it – the idea is to bring commercial business into this country – but I do it.’

Stephen Waddell, actra’s national executive director, says he’s not aware that the actra agreement is deterring producers from using Canadian talent to this degree, but won’t comment beyond that.

There’s no question that there are certain portions of the agreement that the two sides feel are not user-friendly, and the purpose of the discussions is to soften it for both sides, says Patrick McDougall, president and ceo of the aca.

According to McDougall, major points being discussed are the issues that relate to voice patching and double-shoot fees (spots that must be taped in both English and French). It’s up to actra and the Quebec-based actors union to work out the financial problems specific to the double-shoot issue, he says.