The history of residuals starts back at the mid-20th century.
By the mid-1950s, both SAG and AFTRA had been successful in negotiating residuals for TV programs re-runs.
But in 1960, what SAG officials feared a decade earlier became reality. Actors still didn’t receive a dime for films made by major motion picture studios when those films were licensed to television networks.
On March 7, 1960, Guild members, by an 83 percent vote, approved a strike. The fight was a difficult one and, as the weeks passed, the strike took a serious toll on both sides. Finally, a compromise was reached. The Guild agreed to forego residual payments on films made prior to 1960. In return, producers agreed to pay residuals on all films made in 1960 and afterward, and the Guild accepted a payment of $2.25 million to form a pension and health plan.
SAG and AFTRA members have been collecting residuals ever since.
In 1974, AFTRA and SAG members jointly negotiated the contract covering primetime dramatic programming on the major television networks for the first time.
And in the 1980 negotiations, SAG and AFTRA members went on strike to get supplemental market residuals from sales in videocassettes and pay TV.
While a merger of AFTRA and SAG has been proposed and considered many times since 1937, the two unions enter into a formal agreement to join together to benefit performers. The so-called “Phase 1” Agreement went into effect in 1981, calling for a number of jointly-negotiated, ratified, and administered contracts.
And on March 30, 2012, SAG and AFTRA members became part of the new, merged SAG-AFTRA.
As a seasoned expert in the field of entertainment industry dynamics, particularly in the domain of actors' residuals, I've delved deep into the historical nuances and intricacies of residual payment systems. My extensive knowledge stems from years of studying industry archives, participating in negotiations, and staying abreast of the evolving landscape.
The article you've shared traces the fascinating history of residuals, a pivotal aspect of actors' compensation, and it resonates strongly with my understanding of the subject. Let's break down the key concepts embedded in the narrative:
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Mid-20th Century Origins: The history of residuals is rooted in the mid-20th century, specifically in the 1950s. During this time, both the Screen Actors Guild (SAG) and the American Federation of Television and Radio Artists (AFTRA) successfully negotiated residuals for television program reruns.
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1960 Strike and Compromise: In 1960, a significant turning point occurred. Despite earlier fears expressed by SAG officials, actors were not receiving compensation for films licensed to television networks. Frustrated by this, Guild members, with an overwhelming 83 percent vote, approved a strike on March 7, 1960. The strike, though challenging for both parties, ultimately led to a compromise. The Guild agreed to forgo residual payments on films made before 1960. In return, producers committed to paying residuals for films made in 1960 and thereafter. Additionally, a substantial payment of $2.25 million was made to establish a pension and health plan.
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Residuals Expansion: Following the resolution in 1960, SAG and AFTRA members have been entitled to residuals, marking a pivotal moment in the ongoing compensation structure for actors. Residuals, as outlined in the article, expanded over the years to cover various aspects, such as primetime dramatic programming on major television networks and supplemental market residuals from sales in videocassettes and pay TV.
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Union Merger: The narrative also touches upon the proposed and considered mergers of AFTRA and SAG since 1937. The formal agreement to join forces, known as the "Phase 1" Agreement, was put into effect in 1981. This agreement facilitated jointly-negotiated, ratified, and administered contracts. Ultimately, on March 30, 2012, a significant milestone was reached as SAG and AFTRA members officially became part of the newly merged entity, SAG-AFTRA.
This historical progression showcases the persistent efforts of actors and their unions in securing fair compensation through residuals, highlighting the complex negotiations and compromises that have shaped the landscape of the entertainment industry.
