Dear AFTRA Member,
I'm sure you have seen the devastating images of the flood damage in Nashville and other parts of Tennessee, Kentucky and Mississippi, which is why we’re a bit late in sending out our monthly officer message.
This flood may be one of the great natural non-hurricane disasters to occur in the U.S. Tragically, many lives were lost and we have suffered billions of dollars in property damage. The devastation to the Grand Ol’ Opry, for example, isn’t just about property damage to an iconic American landmark, but disruption to jobs and millions in tourism dollars lost in an already challenged economy. We will recover, rebuild and rebound and Nashville will shine again as America’s Music City.
On that note, I wanted to update you on the AFTRA Sound Recordings Code. Did you know the Sound Recordings Code is AFTRA’s second largest national contract after the Network Television Code? AFTRA recording artists and session singers earn more than $130 million in wages and royalties under our Code, and health and retirement contributions are made on those earnings for the benefit of members and their families. The AFTRA Sound Recordings Code covers our work in a variety formats from recorded music on CDs and digital downloads to Broadway cast albums, music videos and audiobooks.
But our world is changing fast, and just like AFTRA members who work in entertainment and the news media, we face the challenges of a rocky economy, quickly evolving technologies and digital theft.
State of the Industry
In the span of roughly 10 years, total music album sales have been cut in half, and although digital sales are growing rapidly, they have not come anywhere near to filling the gap. For example, U.S. album sales fell in 2009 for the eighth time in nine years, according to SoundScan, with 2009 album sales dropping by 13% from 2008. Digital downloads increased some 27%, and now account for 40% – slightly less than half – of all music purchases.
And of course, we face the scourge of digital theft (It's not piracy, it's theft!). According to the International Federation of the Phonographic Industries, 95% of music downloads worldwide are illegal! Digital theft in the entertainment business is estimated to cost the U.S. economy $12.5 billion in total output and 71,000 lost jobs.
Theft isn't limited to the music industry, as digital theft costs lost wages and jobs in the television and movie businesses as well. You can read an excellent article on digital theft published by the Union Label & Service Trades Department of the AFL-CIO and featured on our AFTRA Web site by clicking here.
Now more than ever, recording artists and session singers need to focus on our AFTRA Sound Recordings Code.
Sound Recordings Code Negotiations Update
Our current AFTRA Sound Recordings Code is set to expire on June 30. Initial talks for the AFTRA Sound Recordings Code are scheduled to begin in New York on June 1. Our proposals, which have been developed from the input of working members, and the final outcome of negotiations will influence what you earn and the conditions under which you work in sound recordings. As the National Chair of the 2010 Sound Recordings Code Negotiating Committee, I encourage all AFTRA members to support the negotiating committee, provide our union guidance during the negotiations and then decide on a final contract.
Health Benefits for Artists
One issue to be addressed is guaranteed health insurance benefits for artists. We worked hard during the 2002 and 2007 negotiations to establish and expand this benefit. However, AFTRA members and their managers are often unaware that roster artists on AFTRA signatory record labels are guaranteed health insurance benefits. Although artists are supposed to receive information about this benefit when signing their recording contract, many artists aren’t present at their contract signing and the artist and label representatives fail to inform artists of this guaranteed benefit. The result: too many artists fail to enroll and therefore go without the health insurance available to them.
There should never be a situation where a roster artist goes without health insurance. The artist simply needs to fill out an enrollment form and pay the quarterly premiums for individual health insurance. The record label is required to subsidize the remainder of the cost to ensure a year of health insurance coverage for every year the artist is on its roster. Artists and artist managers in need of additional information or assistance with health insurance can call the AFTRA Artist Assistance Hotline at 1.866.91AFTRA (1.866.912.3872) for help.
This was a hard-won benefit for artists that we achieved through tough negotiations with the record labels, and it should not go unused!
Performance Rights Act Update
On the legislative front, the Performance Rights Act continues to dominate our legislative agenda. The Performance Rights Act will correct the fact that the U.S. is the only developed country that fails to provide a right to performers to be compensated when their music is played on broadcast radio. We are well represented in Washington, particularly by our excellent advocate of performer’s rights, AFTRA National President Roberta Reardon.
President Reardon recently joined AFL-CIO President Richard Trumka, AFM President Tom Lee and AFTRA member Peter Yarrow at a news conference in our nation’s capitol in support of this important legislation. Click here to read more.
AFTRA Artist Agreements
As the recording industry continues to change, more artists are working outside of the traditional label structure. In response to this reality, our union has created two agreements tailored to meet needs of artists who are increasingly striking out on their own. Check out our MySpace pages about the AFTRA Independent Artist Agreement and the AFTRA Touring Agreement which were created for this purpose, and learn more about how our union is adapting to the new world in which we singers increasingly find ourselves.
Flood Assistance
As I mentioned before, Nashville was hit by devastating floods. The generosity and unity of our music community are key to our recovery. AFTRA Nashville oversees the Performers Emergency Relief Fund (PERF) that assists AFTRA members located in the Nashville-area. The Actors Fund also offers assistance to all AFTRA members regardless of category. If you are an AFTRA Nashville member who needs assistance because of the recent flooding or other hardships, please call the AFTRA Nashville Local at 615.327.2944 or visit The Actors Fund Web site at http://www.actorsfund.org.
The AFL-CIO’s consumer benefits program for members, Union Plus, also provide disaster relief grants. Click here for more information.
I hope all of you are doing as well as possible in our current economic climate. If you would like to contact me, I’d love to hear from you. My email address is jim@jimfergusonmusic.com.
In solidarity,
Jim Ferguson
AFTRA National Vice President
Chair, AFTRA National Singer’s Caucus