Contract with Groundbreaking A.I. Protections and 26.3% Compounded Wage Increase Approved by 97.69%
In national voting completed today, members of SAG-AFTRA ratified the 2024 Sound Recordings Code with the leading record labels — Warner Music Group, Sony Music Entertainment, Universal Music Group and Disney Music Group and most of their subsidiary labels. Members approved the new contract which covers the period from Jan. 1, 2021, through Dec. 31, 2026 with a vote of 97.69%% to 2.31%.
“Singers and recording artists have a profound impact on our culture, and I’m thrilled that they’ve achieved a contract that not only recognizes their value with significant wage increases, but also provides them essential protections around artificial intelligence,” said SAG-AFTRA President Fran Drescher. “We celebrate our human performers! I applaud the negotiating committee and staff, the record labels, and SAG-AFTRA members for getting this contract across the finish line!”
Informational Meeting
Frequently Asked Questions
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- All eligible affected members were mailed a postcard on Monday, April 15, 2024, with instructions and a PIN number on how to vote online at vote.ivsballot.com/SRC2024 or how to request a paper ballot. If necessary, you can retrieve your PIN at the voting website by clicking “Find My PIN.”
- Ballots — whether submitted online or by mail — must be received by 5 p.m. PDT on Tuesday, April 30, 2024.
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- Yes, there will be an informational meeting on Thursday, April 18, from 1-3 p.m. PT / 3-5 p.m. CT / 4-7 p.m. ET. This meeting will be held via Zoom and a recording will be posted online for those who are not able to attend.
- Please visit sagaftra.org/SRC2024 for more information and to register.
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- If the union fails to ratify the new agreement, the National Board and Sound Recordings Code Negotiating Committee will have to meet to decide the next steps, which could include approaching the record labels about additional negotiations. The prior Sound Recordings Code would remain in effect until further action is taken.
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- Drafting of the Memorandum of Agreement can take some time. Union staff is working diligently with the record labels to make sure that the final language accurately reflects all the agreed upon terms; however there is no guarantee that it will be available during the voting period. If it does become available, the union will provide it to members as soon as possible.
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- Use your voice to encourage other eligible SAG-AFTRA members to vote! Social media graphics, FAQs and other updates are available at sagaftra.org/SRC2024.
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- You are being asked to vote on the 2024 Sound Recordings Code, which details terms of employment for SAG-AFTRA members who work under this contract through December 31, 2026. This agreement includes substantial increases in wage minimums and health & retirement contributions and strong A.I. protections.
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- This new contract achieves much-needed gains for members working under the Sound Recordings Code. The Negotiating Committee fought hard for these gains and, along with the Executive Committee, are unanimously recommending a yes vote to lock these gains in now.
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- If the tentative agreement is ratified, the artificial intelligence guardrails will take effect immediately upon ratification. The initial 14.5% increase to wage minimums will be effective the first Monday of the month after ratification, with subsequent increases of 3.75% on January 1, 2025, 3.25% on January 1, 2026 and 3% on December 31, 2026. The general health and retirement plan contribution rate increase of 0.5% will be effective January 1, 2025, with the exception of the streaming contribution rate, which will remain at its current 13%. Increases to the percentage of streaming revenue covered by health and retirement contributions will increase from 50% to 75% on January 1, 2025 and from 75% to 100% on December 31, 2026. The new terms will remain in effect until at least December 31, 2026 or until a new contract is negotiated.
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- At the start of negotiations in 2021, SAG-AFTRA was pursuing legislation that concerned the labels. As a result, the labels postponed negotiations while that legislation was pending. The extended duration of this term opened the door for us to include A.I. protections in this round of negotiations and it allowed our negotiating committee to capitalize on the higher wage increase gains achieved in the TV/TH negotiations.
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- Our negotiating committee helped secure the first-ever collectively bargained guardrails to ensure ethical and responsible use of artificial intelligence in the music industry, including the requirement of consent prior to the release of a sound recording using digital replication of an artist’s voice. That consent must be obtained in a writing separate from the artist’s royalty agreement or performer contract, and it must contain clear and conspicuous language, including reasonably specific details of the intended use of the digital replica.
- In addition, this agreement requires payments for streaming exploitation of tracks created by Generative Artificial Intelligence (“GAI”) which include synthetic vocal performances, and an obligation to provide notice to the union and bargain terms for the licensing of tracks created using GAI sound recordings which include synthetic vocal performances.
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- The company’s use of a Digital Voice Replica in a released recording shall be compensated for royalty artists per their artist agreement and for non-royalty artists (session singers), as a minimum of three sides per project.
- If the artist is called into a session and required to be present for the purpose of creating a Digital Voice Replica, the company is required to give 48 hours notice and pay the session as work time.
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- If the artist is deceased at the time consent is sought, the consent must be obtained from the representative or estate of the deceased artists if it was not obtained from them during their lifetime. If the Company is unable to locate the artist’s estate and still wishes to obtain the consent required by the new terms, it can contact SAG-AFTRA.
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- We achieved a wage increase of 14.5%, which will go into effect the first Monday of the month after ratification plus three additional wage increases (3.75% on January 1, 2025, 3.25% on January 1, 2026 and 3% on December 31, 2026) over the term of the contract. Together, these increases compound for a total of 26.3% over the course of the contract.
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- While this contract does not include any retroactive payments, the significant initial increase of 14.5% was negotiated to include the amount that scale wages have increased during the time that this contract was being negotiated.
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- TikTok enters blanket licensing agreements with the record labels for the use of their catalog, and the record labels have agreed to pay those uses as streaming (.36% for worldwide receipts, not to exceed .55% of receipts from the United States).
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- Over the past three contract cycles, your negotiating committee has secured significant gains in health and retirement contributions made on payments non-featured vocalists receive for streaming. These contributions started at being due on only 15% of streaming payments, increased to 50% of such payments during the last contract period, and under this new contract, will reach 100% of the labels' total payments by the end of the upcoming term. Payment on 100% of streaming payments has been a long term goal of our negotiating committee and will go a long way towards helping individuals qualify for health and retirement benefits long into the future.
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- We made several improvements in the areas of health and retirement including a general contribution increase of 0.5% to 13.5% effective January 1, 2025, except for the contribution rate on streaming, which will remain at 13%.
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- Please email soundrecordings2024@sagaftra.org