Unionized actors had been paid by a residuals system for network television since the 1950s. This system provided actors with payment for every time the commercial aired. However this system was not extended to cable television, where the average union actor could expect to receive a $1,000 USD for their appearance in an ad, no matter how many times it aired. This discrepancy was a sticking point for both advertising firms and acting unions, and the members of SAG who worked frequently worked as commercial actors had specifically lobbied William Daniels to run to ensure leadership support for negotiations on advertising fees. With an approaching expiration of the existing contract for commercial acting, the unions and advertisers both came to the table with a mind to reconcile the discrepancy between systems. With advertisers proposing a flat fee to replace the residuals system on network TV, and unions pushing for an extension of the residuals system to cable TV.thumb|William Daniels, president of SAG during the strike
