Milk Board Signs Ad Deal to Use Striking Actors

The California Milk Processor Board has signed an interim agreement to use striking members of Screen Actors Guild and American Federation of Television and Radio Artists in three new “Got Milk” commercials.

The board, which spends about $25 million annually to pitch milk in its humorous spots, signed the agreement just days before production was to begin on commercials created by San Francisco-based advertising agency Goodby, Silverstein & Partners.

SAG characterized the board’s decision as a victory in the strike that began May 1. “This is one of nearly 1,900 interim agreements signed since this thing began,” said SAG spokesman Greg Krizman.

Milk board Director Jeff Manning said the decision to use union actors shouldn’t be characterized “as a victory or defeat for either side. I’m acting out of selfish reasons--what’s going to serve my board and milk processors.”

By signing the interim agreement, the milk board agreed to pay actors according to the pay structure that unions want national advertisers to accept. The milk board’s agreement is unusual because it was signed directly by an advertiser. Other interim agreements have been signed by ad agencies or production houses working for advertisers. Trade groups representing national advertisers and major advertising agencies maintain that their members are sticking with their decision to film spots using nonunion talent.

Word of the milk board agreement surfaced as the national advertisers and actors head to New York in a bid to reopen negotiations that stalled late in July. Neither side would detail what they expect to happen this morning when federal mediators open the session.

In what actors described as a negotiation tactic, the Assn. of National Advertisers and the American Assn. of Advertising Agencies late last week released numbers suggesting that the longest acting strike in Hollywood history hasn’t significantly slowed production of new commercials. The trade groups also have argued that SAG has signed far less than 1,900 interim agreements.

But the Hollywood Reporter, in a story published Monday, quoted from an internal memo written by an ad agency executive who described a “shortage of experienced actors” that has affected commercial production. The memo reportedly detailed a conversation involving Walt Disney Studios and the Leo Burnett advertising agency.

“Obviously, there are [advertisers] out there who are delaying work right now with the hope and anticipation that there will be some kind of settlement,” Krizman said.

SAG and AFTRA continue to send pickets to sites where commercials are being shot with nonunion talent. Advertising agency sources say SAG had been putting heavy pressure on the milk board to delay the new “Got Milk” spots or sign an interim agreement.

Actors late last week received support from the director of a New York state public employees pension fund who asked AT&T; not to film commercials with nonunion actors. AT&T; spokesman Burke Stinson said Monday that the telecommunications giant won’t take sides: “We hope that the bargaining which resumes [today] will result in an agreement that suits both sides.”

Stinson wouldn’t detail AT&T;’s upcoming advertising, but the company that has been advertising during Olympics TV coverage since 1984 is scheduled to unveil new spots on Friday during NBC’s coverage of the Summer Games in Australia.

In a related development, SAG said Academy Award winner Kevin Spacey has donated $100,000 to the SAG strike fund. In a statement, Spacey said SAG “will protect its members, because this union is here to stay.”