The National Film Board of Canada (NFB) and the Directors Guild of Canada (DGC) and have reached a new collective agreement that changes the pay structure to one proportional to budget, not the length of a film, and ensures compensation for production delays.

The scale agreement covers 2022 to July 30, 2025 and takes effect today (Jan. 31). A news release says the contract has been ratified by DGC members who’ve worked under an NFB contract by an overwhelming majority. It applies to all directors and first assistant directors working on productions that are either 100% NFB-financed, or co-productions financed by at least 40% NFB funds, excluding French-language content from the Quebec studio.

The deal covers documentary, drama and animation productions and provides the minimum terms for director compensation and creative rights. The DGC says the contract puts NFB productions in line with industry standards and ensures fair compensation, giving documentary directors a guaranteed minimum fee equal to 10% of the production budget, or $3,500, whichever is greater. Payments are to be divided into a minimum of 14 instalments and, during the production phase, additional payment instalments will be paid upon completion of shooting blocks.

Meanwhile, animation productions will have a single contract rather than splitting a director’s contract between “directing work” and “animating work.” Animation directors also performing animation work on a production are guaranteed a minimum fee equal to 30% of the production budget less fees paid to other animators. The deal is 12.5% of the budget or $3,500, whichever is greater, for directors performing no animation work (and 15% or $3,500, whichever is greater, for budgets of $100K or less). Payments will be divided into a minimum of 10 instalments. During the production phase, monthly payments will be paid based on the animation progress.

For drama productions, which are rare at the NFB, the same conditions as for documentaries will apply except for budgets over $1 million where the fee is negotiable but cannot be less than $100,000.

The DGC says the agreement also resolves the issue of delays in production schedules attributed solely to the NFB, which previously hampered directors’ ability to properly negotiate their fees and know when they would be free to accept other projects.

Under the new agreement, when a production postponement is uniquely attributable to the NFB, the director is entitled to a penalty equivalent to 10% of the total director’s fee for directing services. The penalty fee is prorated over a period of three months, paid in equal monthly instalments for each full month of postponement.

Delays of over three months uniquely attributable to the NFB shall be considered a suspension of the production, according to the agreement. In that case the director may choose to terminate the directing contract and obtain compensation equivalent to the amount of the next scheduled instalment payment up to a maximum of $5,000.

“This agreement puts NFB productions in line with industry standards, basing directors’ compensation on budget, not the length of their film, and limiting production delays,” said DGC president Warren P. Sonoda, in a statement. “We believe this deal not only guarantees a fair contract for our members, but will strengthen the NFB in helping it to attract the most talented creators our industry has to offer.”

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