Arbitrator hands victory over residuals to Screen Actors Guild.

An independent arbitrator has handed the Screen Actors Guild a major victory in ruling actors need not give their agents commissions on residuals the actors collect on productions re-shown on cable, home video, non-network television and other supplemental markets.

The decision allows the

The ruling, handed down by arbitrator Howard Block last month, ends a long-standing argument between the Screen Actors Guild and the Association of Talent Agents, a trade group that represents some 125 talent agencies.

At issue was whether the existing contract between the actors union and the ATA allowed agents to collect commissions on residuals that actors get on films and television productions sold into the increasingly lucrative realm of "supplemental markets." Such markets include theatrical films sold to free television, basic cable, pay TV and home video, or television series and television movies sold to pay TV, basic cable, in-flight use and home video.

Policy reversal

Until 1992, talent agents received a percentage of residuals only if they were for prime-time reruns of network television shows. Residuals are payments due an actor each time a production is shown on television or another non-theatrical setting.

That all changed, however, when in 1992 the SAG board of directors agreed with the ATA's claim that the existing contract between the two groups provided for agents to take a percentage on residuals for supplemental market showings as well.

That change in course led to an outcry by SAG members, who had to turn over millions of dollars a year to their agents.

Thus, the SAG board of directors reversed course again in July 1993, disputing the ATA's claim to the residuals.

Negotiation ban

SAG and the ATA agreed to settle the matter in binding arbitration, which ultimately affirmed the SAG position. The arbitrator also ruled that the issue may not be reopened in negotiations by the two groups for three years.

"We are happy that we were able to resolve this issue through arbitration, due in part to the guild's elected leadership listening very carefully to our members and reacting to their needs," said SAG National Executive Director Ken Orsatti.

ATA Executive Director Chester L. Migden called the decision disappointing, but said the agents will abide by the arbitrator's ruling.