Wells, a moderate, to again seek WGA presidency [updated]

John Wells, the executive producer behind "Southland" and the hits "ER" and "West Wing," may have a second act at the Writers Guild of America.

The nominating committee of the Writers Guild of America, West on Monday announced that Wells (pictured) was one of two candidates qualified to run as president of the union in board elections this fall.

Wells, who keeps an office on the Warner Bros. lot, is known as a moderate whom some writers criticize as being too cozy with the studios. He was president of the guild from 1999 to 2001. He will run against Elias Davis, who is currently the union's treasurer and a supporter of outgoing president Patric Verrone, who is finishing his second term and cannot run for a third because of term limits.

Verrone led the union during a 100-day strike that shut down TV production last year. Although Wells supported the strike, he was among a group of high-profile writer-producers who helped pave the way for a settlement.

There are 16 candidates nominated to run for eight open seats on the guild's board of directors. Votes will be tallied Sept. 18.

-- Richard Verrier

UPDATE: Reached in Hawaii, where he was vacationing with his family, Wells said he chose to run after a member of the guild's nominating committee approached him. "I care a lot about the guild and have been meeting to get back in it,'' Wells says. "I was on the board and involved in various committee work for 14 years. I just took a reasonable break." Wells says he believed his experience would help the guild in the next round of negotiations as Hollywood continues to grapple with recession and the spread of online entertainment. "The business is going through extraordinary changes,'' he says."I'm hoping some of my experience members will see as valuable."

Photo: Jill Connelly/AP

Demand for the state's new film tax credit program is so high that the California Film Commission
will use a lottery system next month to select which applicants get reviewed first.

"No one needs to send a PA [production assistant]to camp outside for five nights on Hollywood Boulevard,'' Amy Lemisch, director of the California Film Commission, told a crowd of production executives at a reception in West Hollywood today.

The film commission, the state department that is running the film tax credit program, has been inundated with phone calls from film and TV producers inquiring about how they can apply for the credits.

Amid rising evidence that the state was losing shows to other cheaper locales, the state Legislature this year agreed to allocate $500 million in film tax credits over a five-year period. Producers can obtain a  tax credit totaling 20% to 25% of "qualified production expenses." But there are key restrictions: Only feature films that cost $75 million or less are eligible. The program also is limited to new basic cable TV series, movies of the week or miniseries and existing TV series that move back to California.

Despite the limitations, there's plenty of interest. Lemisch expects up to 50 applications will pour in July 1, when the program debuts. However, the state only has enough money to fund about 30 projects in the first year. That has led some to question how effective the program will be at curbing so-called runaway production.

But Lemisch predicts the program will have an immediate effect. "If I can keep 30 projects, that's millions of dollars in revenue and hundreds of jobs that would have otherwise left the state." 

-- Richard Verrier

As if L.A. needed any more reminders of just how much production is leaving town, along comes fresh data to document the grim trend.

While much attention has focused on the migration of feature film production, a new survey highlights how the exodus of production is eroding another key segment of the local economy: the filming of television pilots.

TV pilots, the pool of contenders from which the networks choose their series, on average employ 150 people per show and have budgets from $3 to $5 million.

But as any location manager will tell you, this year's pilot season was a bust, reflecting a steady erosion in the local industry.

The number of pilots produced in L.A. fell nearly 42% to 59 from 101 between 2004 and 2009, according to a report from FilmL.A. Inc, the nonprofit group that handles film permits. In large measure that's because the networks are ordering fewer pilots as they rely more on reality programming in prime time.

But the survey also provides evidence that some of the loss is due to market share going to other locales. Consider: In 2004 L.A. hosted 81% of all pilots. That dropped to 57% in 2009. Of 103 pilots produced this year, 59 were shot in L.A. and 42 were produced outside California, mostly in Canada and states such as New Mexico, Louisiana and Illinois that offer film tax credits and rebates.

"The fact that so many of this year's pilots chose to film outside the area shows that no facet of the entertainment industry can be considered captive in Los Angeles,"  said FilmL.A. President Paul Audley.

-- Richard Verrier

Hollywood's largest actors union strongly endorsed a new film and TV contract, closing the chapter on a year-long dispute with the major studios.

The vote, which was expected to be close, drew a stronger show of support from the membership of the Screen Actors Guild, with 78% supporting the deal, and 22% opposing it.

The approval comes nearly a year after the guild's current contract expired and is largely similar to a deal the studios offered the union last fall. SAG's bargaining clout was hurt by the weak economy and a series of strategic missteps by the union's former chief negotiator, who was ousted in a boardroom revolt in January.

Although the contract was expected to be ratified, the vote puts to rest lingering fears in Hollywood that the entertainment industry would face another strike following last year's walkout by writers.

It could also help spur at least some independent film production that has been held up because of the dispute. The uncertainty had caused some insurance companies to stop issuing completion bonds -- ensuring that a film will be done on time and within budget -- that independent filmmakers depend on.

The contract was patterned after similar agreements negotiated last year by three other talent unions. It includes an immediate pay increase of 3% and for the first time gives actors residual pay for shows that streamed for free on websites like Hulu.

But SAG's members were sharply at odds over the terms. Stars lined up on either side of dueling campaigns. A group of A-list actors led by Tom Hanks and George Clooney backed the contract as the best that could be had in a difficult economic climate.

Another group that included former SAG President Ed Asner, Ed Harris and Martin Sheen blasted the agreement, saying it shortchanges actors for work that is distributed on the Internet.

Underscoring the divisions, the contract was supported by a majority of the board and the union's executive director, but opposed by the union's president, Alan Rosenberg, who vigorously campaigned against the contract.

Rosenberg was an ardent backer of former SAG executive director Doug Allen, who was ousted after a group of dissident actors won control of the board in elections last fall. They replaced him with veteran negotiator John McGuire and David White, the union's former general counsel.

--Richard Verrier

It may not do much to spur sluggish commercial production in Los Angeles, but the two unions representing Hollywood actors overwhelmingly backed new contracts covering their work in commercials.

Members of the Screen Actors Guild and its smaller sister union, the American Federation of Television and Radio Artists, voted 93% in favor of the contracts, which cover performers working in commercials made for and reused on television, radio, the Internet and other new media.

The agreements, which are retroactively effective to April 1, provide a 5% pay increase, contain about $24 million in increased contributions to the unions' health and pension plans and, for the first, time, establish a pay structure for work made for the Internet and other new media.

The sides also agreed to hire a consultant to conduct a two-year study to test a new way of paying actors. Advertisers, who've been hit hard by the recession and a long-term decline in national TV ad viewership, want to revamp the current "pay-for-play" system in which actors are paid based on how often and where a spot runs. Instead, they favor a "gross-rating points" system, in which residuals would be tied to viewership. The unions, however, rejected the demand but agreed to study the proposal.

The strong endorsement was expected as the boards of both unions had unanimously endorsed the agreements, which cover more than 30,000 actors who work in commercials.

Next up for SAG is the vote on the film and TV contract, which members are expected to ratify June 9, although that vote probably will be much closer because the union is deeply divided over the proposed terms. AFTRA approved its film and TV contract last year.

— Richard Verrier

Hollywood's entertainment unions, which often clash over bargaining strategy, finally have something they can rally around (surprise): the right of workers to form a union.

As debate in Washington heats up over the proposed Employee Free Choice Act, unions representing actors, writers, directors and crew members collaborated with umbrella organization AFL-CIO to produce a video in support of the legislation, designed to lift roadblocks to unionization.

The three-minute online video features testimonials from 47 performers and actors, including F. Murray Abraham, actor-comedian Jerry Stiller and Amy Brenneman, star of the TV series "Private Practice."

"People associate actors with fame and glory. The truth is, for a long time my union contract was the reason I could support my family,'' Brenneman said in a statement. "Each worker, regardless of their field, deserves the freedom to bargain for a contract, for a better life."

Among the participants in the video are the presidents of two Hollywood unions who have no love lost for each other: Alan Rosenberg from SAG, and Roberta Reardon from the smaller actors union, the American Federation of Television and Radio Artists. The two unions suspended their longstanding joint bargaining agreement last year after a series of disputes.

Even nemeses can occasionally put aside their differences when it comes to the union label.

— Richard Verrier

Hollywood's largest actors union is cutting 8% of its staff in the face of investment losses and declining membership dues.

The Screen Actors Guild plans to cut about 35 workers from its payroll to close a $6.5-million deficit in the union's fiscal 2009 budget. The cuts span several departments and includes those who work in the union's organizing and information technology departments, according to people familiar with the matter. Affected workers will be notified this week. SAG has about 440 employees.

David White, interim director of the Screen Actors Guild, briefed board members on the planned layoffs on Saturday when they approved the union's annual $60-million annual budget. White told board members the cuts were needed to balance the budget and leave enough cash in reserves to cover at least six months of operations.

The guild's income stream has been hit on two fronts: investment income, which is down sharply due to the turmoil in stock markets, and membership dues, which are tied to how much actors earn.

Fewer actors have been working as studios curtail production on movies and TV shows. SAG also has lost work to its rival union, the American Federation of Television and Radio Artists, whose labor contracts now dominate prime-time TV pilots.

At the same time, SAG's expenses have risen sharply. Over the last two years, the guild has added 100 people to its staff, partly for organizational outreach activities.

The Writers Guild of America, West,  recently cut 10 % of its staff to close a budget shortfall, which guild officials blamed on investment losses and a sharp falloff in jobs for writers during the last year, when the guild waged a 100-day strike.

-- Richard Verrier

Negotiators for the Screen Actors Guild and the major studios have reached a tentative agreement on a new two-year contract for the union's 120,000 members.

Sources close to the talks say the union's negotiating task force will be briefed today on the proposed agreement, which is expected to be voted on by SAG's 71-member national board on Sunday.

Actors have been working without a contract for nine months as previous attempts at negotiations with the studios collapsed.

The contract contains some minor improvements over previous offers but is largely similar to the one studios presented to SAG nine months ago. That is certain to raise questions about what the union  accomplished by holding out so long to secure a deal after other talent unions secured their own contracts with the studios.

The agreement was hashed out after weeks of back-channel talks involving between SAG interim executive director David White and top media executives, principally Walt Disney Co. CEO Bob Iger and Warner Bros. chairman  Barry Meyer.

Talks were revived after the union's former chief negotiator was ousted by moderates who took control of SAG's board in elections last year.

The breakthrough came earlier this month when the sides reached a compromise over the most contentious issue: the expiration date of a new contract. SAG leaders insisted that their new contract run through June 2011 so that the union could line up its next round of negotiations with the expiring contracts of other Hollywood talent unions. The studios, however, wanted a three-year term, which would push SAG's contract expiration into 2012.

-- Richard Verrier

 

For weeks, the major studios insisted they would never agree to a demand by Hollywood's biggest actors union to have its next contract expire at the same time as those of other talent guilds. 

Now, after back-channel talks between Screen Actors Guild leaders and top entertainment executives, the studios have conceded just that, lifting a stumbling block that broke off negotiations over a new contract in February.

Turns out, however, that the studios' offer comes with a big hitch that may not sit well with hundreds of actors who lost their jobs during the 100-day writers strike. In return for a two-year rather than a three-year contract term, the actors union would agree to settle so-called force majeure claims it filed last year seeking more than $10 million in pay.

After the writers strike ended in February 2008, SAG lodged claims against more than 80 shows on behalf of "series regulars" -- which encompass stars as well as those with a recurring role in a show -- who lost their jobs and wages during the writers walkout. The strike shut down popular series such as "Lost," "CSI" and "Ugly Betty."

SAG maintained that producers violated a force majeure clause in the union's contract that entitled actors to receive roughly 2-1/2 weeks' pay if they were suspended as a result of an "act of God," such as foul weather. The studios, however, balked at paying the claims and accused SAG of overreaching.

Studios want to impose a stricter interpretation of the force majeure clause and have offered to settle the outstanding claims for less than what the actors contend they are owed. How much less is unknown, however.

SAG interim Executive Director David White and Chief Negotiator John McGuire have indicated that they would accept the studios' demand as a necessary concession to preserve the larger goal of aligning the expiration of the actors contract with those of other guilds. They are especially keen to have SAG's contract expire at the same time as that of the smaller actors union, the American Federation of Television and Radio Artists, to gain maximum leverage at the bargaining table.

Expect fireworks from dissidents. The force majeure issue will almost certainly be seized on by White's opponents in the actors guild, who've vowed to campaign to defeat a contract they view as an inferior deal. The actors have been working without a contract for nine months. 

Nonetheless, the new SAG leaders, who were installed after the board fired former Chief Negotiator Doug Allen, retain the support of the board majority. And in the end, most members, weary of working without a contract and anxious about the deepening recession, are expected to support whatever contract their board recommends.

-- Richard Verrier

After weeks of back-channel talks, Hollywood's biggest actor union and the major studios appear to have broken their logjam and could be close to reaching an agreement on a new three-year contract, according to people close to the situation.

The agreement would come as a breakthrough for the Screen Actors Guild, whose members have been working without a contract for nine months as various attempts at negotiations with the studios collapsed amid acrimony and frustration. Talks picked up again after the union's former chief negotiator was ousted by moderates who took control of SAG's board in elections late last year.

Only a month ago, as the economy worsened and more workers in the entertainment industry found themselves without jobs and studios made cutbacks, many in Hollywood despaired the two sides would ever be able to resolve their differences.

Now SAG's interim executive director David White and a group of top entertainment executives are "very close" to resolving most of the remaining sticking points that caused negotiations to break off in February, according to people familiar with the situation who asked not to be identified because they were not authorized to discuss the negotiations.

White has spent the last four weeks meeting privately with several top Hollywood executives, including Walt Disney Co. Chief Executive Bob Iger and News Corp. President Peter Chernin to end the standoff. Iger and Chernin played a pivotal role in helping to craft new contracts last year with Hollywood's directors and writers. They and other studio executives began talking among themselves last month about finding a way to end the impasse after receiving calls from big-name actors including Tom Hanks and George Clooney.

SAG spokeswoman Pamela Greenwalt said it was premature to comment about a breakthrough. "SAG's leadership remains engaged in ongoing efforts to secure a fair deal for SAG members," she said.

Although some points remain at issue, the agreement is said to include a compromise over the most contentious issue: when SAG's new contract would expire.

SAG leaders have insisted that their new contract run through June 2011 so that the union can line up its next round of negotiations with the expiring contracts of other Hollywood talent unions, including the American Federation of Television and Radio Artists and the Writers Guild of America. The studios, however, have insisted on a three-year term, which would push SAG's contract expiration into 2012.

If studios agree to SAG's demand for a shorter contract term, the actors union would likely have to give up something in return.

SAG chief negotiator John McGuire, who just negotiated a new commercials contract for SAG members, is expected to present the outlines of an agreement to the guild's negotiating task force Tuesday, which could set the stage for the return of formal negotiations with the Alliance of Motion Picture and Television Producers, which bargains on behalf of the studios but is dominated by heads of the major media companies.

The union's national board could vote on a final contract when it meets April 18.

White and McGuire are under heavy pressure to deliver a contract to the union's 120,000 members. They were recently installed by a moderate majority on the union's board that accused former leaders of mishandling negotiations and pushing SAG toward the brink of a strike.

-- Richard Verrier

State resorts to lottery to dole out film tax credits

Demand for the state's new film tax credit program is so high that the California Film Commission
will use a lottery system next month to select which applicants get reviewed first.

"No one needs to send a PA [production assistant]to camp outside for five nights on Hollywood Boulevard,'' Amy Lemisch, director of the California Film Commission, told a crowd of production executives at a reception in West Hollywood today.

The film commission, the state department that is running the film tax credit program, has been inundated with phone calls from film and TV producers inquiring about how they can apply for the credits.

Amid rising evidence that the state was losing shows to other cheaper locales, the state Legislature this year agreed to allocate $500 million in film tax credits over a five-year period. Producers can obtain a  tax credit totaling 20% to 25% of "qualified production expenses." But there are key restrictions: Only feature films that cost $75 million or less are eligible. The program also is limited to new basic cable TV series, movies of the week or miniseries and existing TV series that move back to California.

Despite the limitations, there's plenty of interest. Lemisch expects up to 50 applications will pour in July 1, when the program debuts. However, the state only has enough money to fund about 30 projects in the first year. That has led some to question how effective the program will be at curbing so-called runaway production.

But Lemisch predicts the program will have an immediate effect. "If I can keep 30 projects, that's millions of dollars in revenue and hundreds of jobs that would have otherwise left the state." 

-- Richard Verrier

As if L.A. needed any more reminders of just how much production is leaving town, along comes fresh data to document the grim trend.

While much attention has focused on the migration of feature film production, a new survey highlights how the exodus of production is eroding another key segment of the local economy: the filming of television pilots.

TV pilots, the pool of contenders from which the networks choose their series, on average employ 150 people per show and have budgets from $3 to $5 million.

But as any location manager will tell you, this year's pilot season was a bust, reflecting a steady erosion in the local industry.

The number of pilots produced in L.A. fell nearly 42% to 59 from 101 between 2004 and 2009, according to a report from FilmL.A. Inc, the nonprofit group that handles film permits. In large measure that's because the networks are ordering fewer pilots as they rely more on reality programming in prime time.

But the survey also provides evidence that some of the loss is due to market share going to other locales. Consider: In 2004 L.A. hosted 81% of all pilots. That dropped to 57% in 2009. Of 103 pilots produced this year, 59 were shot in L.A. and 42 were produced outside California, mostly in Canada and states such as New Mexico, Louisiana and Illinois that offer film tax credits and rebates.

"The fact that so many of this year's pilots chose to film outside the area shows that no facet of the entertainment industry can be considered captive in Los Angeles,"  said FilmL.A. President Paul Audley.

-- Richard Verrier

Hollywood's largest actors union strongly endorsed a new film and TV contract, closing the chapter on a year-long dispute with the major studios.

The vote, which was expected to be close, drew a stronger show of support from the membership of the Screen Actors Guild, with 78% supporting the deal, and 22% opposing it.

The approval comes nearly a year after the guild's current contract expired and is largely similar to a deal the studios offered the union last fall. SAG's bargaining clout was hurt by the weak economy and a series of strategic missteps by the union's former chief negotiator, who was ousted in a boardroom revolt in January.

Although the contract was expected to be ratified, the vote puts to rest lingering fears in Hollywood that the entertainment industry would face another strike following last year's walkout by writers.

It could also help spur at least some independent film production that has been held up because of the dispute. The uncertainty had caused some insurance companies to stop issuing completion bonds -- ensuring that a film will be done on time and within budget -- that independent filmmakers depend on.

The contract was patterned after similar agreements negotiated last year by three other talent unions. It includes an immediate pay increase of 3% and for the first time gives actors residual pay for shows that streamed for free on websites like Hulu.

But SAG's members were sharply at odds over the terms. Stars lined up on either side of dueling campaigns. A group of A-list actors led by Tom Hanks and George Clooney backed the contract as the best that could be had in a difficult economic climate.

Another group that included former SAG President Ed Asner, Ed Harris and Martin Sheen blasted the agreement, saying it shortchanges actors for work that is distributed on the Internet.

Underscoring the divisions, the contract was supported by a majority of the board and the union's executive director, but opposed by the union's president, Alan Rosenberg, who vigorously campaigned against the contract.

Rosenberg was an ardent backer of former SAG executive director Doug Allen, who was ousted after a group of dissident actors won control of the board in elections last fall. They replaced him with veteran negotiator John McGuire and David White, the union's former general counsel.

--Richard Verrier

It may not do much to spur sluggish commercial production in Los Angeles, but the two unions representing Hollywood actors overwhelmingly backed new contracts covering their work in commercials.

Members of the Screen Actors Guild and its smaller sister union, the American Federation of Television and Radio Artists, voted 93% in favor of the contracts, which cover performers working in commercials made for and reused on television, radio, the Internet and other new media.

The agreements, which are retroactively effective to April 1, provide a 5% pay increase, contain about $24 million in increased contributions to the unions' health and pension plans and, for the first, time, establish a pay structure for work made for the Internet and other new media.

The sides also agreed to hire a consultant to conduct a two-year study to test a new way of paying actors. Advertisers, who've been hit hard by the recession and a long-term decline in national TV ad viewership, want to revamp the current "pay-for-play" system in which actors are paid based on how often and where a spot runs. Instead, they favor a "gross-rating points" system, in which residuals would be tied to viewership. The unions, however, rejected the demand but agreed to study the proposal.

The strong endorsement was expected as the boards of both unions had unanimously endorsed the agreements, which cover more than 30,000 actors who work in commercials.

Next up for SAG is the vote on the film and TV contract, which members are expected to ratify June 9, although that vote probably will be much closer because the union is deeply divided over the proposed terms. AFTRA approved its film and TV contract last year.

— Richard Verrier

Hollywood's entertainment unions, which often clash over bargaining strategy, finally have something they can rally around (surprise): the right of workers to form a union.

As debate in Washington heats up over the proposed Employee Free Choice Act, unions representing actors, writers, directors and crew members collaborated with umbrella organization AFL-CIO to produce a video in support of the legislation, designed to lift roadblocks to unionization.

The three-minute online video features testimonials from 47 performers and actors, including F. Murray Abraham, actor-comedian Jerry Stiller and Amy Brenneman, star of the TV series "Private Practice."

"People associate actors with fame and glory. The truth is, for a long time my union contract was the reason I could support my family,'' Brenneman said in a statement. "Each worker, regardless of their field, deserves the freedom to bargain for a contract, for a better life."

Among the participants in the video are the presidents of two Hollywood unions who have no love lost for each other: Alan Rosenberg from SAG, and Roberta Reardon from the smaller actors union, the American Federation of Television and Radio Artists. The two unions suspended their longstanding joint bargaining agreement last year after a series of disputes.

Even nemeses can occasionally put aside their differences when it comes to the union label.

— Richard Verrier

Hollywood's largest actors union is cutting 8% of its staff in the face of investment losses and declining membership dues.

The Screen Actors Guild plans to cut about 35 workers from its payroll to close a $6.5-million deficit in the union's fiscal 2009 budget. The cuts span several departments and includes those who work in the union's organizing and information technology departments, according to people familiar with the matter. Affected workers will be notified this week. SAG has about 440 employees.

David White, interim director of the Screen Actors Guild, briefed board members on the planned layoffs on Saturday when they approved the union's annual $60-million annual budget. White told board members the cuts were needed to balance the budget and leave enough cash in reserves to cover at least six months of operations.

The guild's income stream has been hit on two fronts: investment income, which is down sharply due to the turmoil in stock markets, and membership dues, which are tied to how much actors earn.

Fewer actors have been working as studios curtail production on movies and TV shows. SAG also has lost work to its rival union, the American Federation of Television and Radio Artists, whose labor contracts now dominate prime-time TV pilots.

At the same time, SAG's expenses have risen sharply. Over the last two years, the guild has added 100 people to its staff, partly for organizational outreach activities.

The Writers Guild of America, West,  recently cut 10 % of its staff to close a budget shortfall, which guild officials blamed on investment losses and a sharp falloff in jobs for writers during the last year, when the guild waged a 100-day strike.

-- Richard Verrier

Negotiators for the Screen Actors Guild and the major studios have reached a tentative agreement on a new two-year contract for the union's 120,000 members.

Sources close to the talks say the union's negotiating task force will be briefed today on the proposed agreement, which is expected to be voted on by SAG's 71-member national board on Sunday.

Actors have been working without a contract for nine months as previous attempts at negotiations with the studios collapsed.

The contract contains some minor improvements over previous offers but is largely similar to the one studios presented to SAG nine months ago. That is certain to raise questions about what the union  accomplished by holding out so long to secure a deal after other talent unions secured their own contracts with the studios.

The agreement was hashed out after weeks of back-channel talks involving between SAG interim executive director David White and top media executives, principally Walt Disney Co. CEO Bob Iger and Warner Bros. chairman  Barry Meyer.

Talks were revived after the union's former chief negotiator was ousted by moderates who took control of SAG's board in elections last year.

The breakthrough came earlier this month when the sides reached a compromise over the most contentious issue: the expiration date of a new contract. SAG leaders insisted that their new contract run through June 2011 so that the union could line up its next round of negotiations with the expiring contracts of other Hollywood talent unions. The studios, however, wanted a three-year term, which would push SAG's contract expiration into 2012.

-- Richard Verrier

 

For weeks, the major studios insisted they would never agree to a demand by Hollywood's biggest actors union to have its next contract expire at the same time as those of other talent guilds. 

Now, after back-channel talks between Screen Actors Guild leaders and top entertainment executives, the studios have conceded just that, lifting a stumbling block that broke off negotiations over a new contract in February.

Turns out, however, that the studios' offer comes with a big hitch that may not sit well with hundreds of actors who lost their jobs during the 100-day writers strike. In return for a two-year rather than a three-year contract term, the actors union would agree to settle so-called force majeure claims it filed last year seeking more than $10 million in pay.

After the writers strike ended in February 2008, SAG lodged claims against more than 80 shows on behalf of "series regulars" -- which encompass stars as well as those with a recurring role in a show -- who lost their jobs and wages during the writers walkout. The strike shut down popular series such as "Lost," "CSI" and "Ugly Betty."

SAG maintained that producers violated a force majeure clause in the union's contract that entitled actors to receive roughly 2-1/2 weeks' pay if they were suspended as a result of an "act of God," such as foul weather. The studios, however, balked at paying the claims and accused SAG of overreaching.

Studios want to impose a stricter interpretation of the force majeure clause and have offered to settle the outstanding claims for less than what the actors contend they are owed. How much less is unknown, however.

SAG interim Executive Director David White and Chief Negotiator John McGuire have indicated that they would accept the studios' demand as a necessary concession to preserve the larger goal of aligning the expiration of the actors contract with those of other guilds. They are especially keen to have SAG's contract expire at the same time as that of the smaller actors union, the American Federation of Television and Radio Artists, to gain maximum leverage at the bargaining table.

Expect fireworks from dissidents. The force majeure issue will almost certainly be seized on by White's opponents in the actors guild, who've vowed to campaign to defeat a contract they view as an inferior deal. The actors have been working without a contract for nine months. 

Nonetheless, the new SAG leaders, who were installed after the board fired former Chief Negotiator Doug Allen, retain the support of the board majority. And in the end, most members, weary of working without a contract and anxious about the deepening recession, are expected to support whatever contract their board recommends.

-- Richard Verrier

After weeks of back-channel talks, Hollywood's biggest actor union and the major studios appear to have broken their logjam and could be close to reaching an agreement on a new three-year contract, according to people close to the situation.

The agreement would come as a breakthrough for the Screen Actors Guild, whose members have been working without a contract for nine months as various attempts at negotiations with the studios collapsed amid acrimony and frustration. Talks picked up again after the union's former chief negotiator was ousted by moderates who took control of SAG's board in elections late last year.

Only a month ago, as the economy worsened and more workers in the entertainment industry found themselves without jobs and studios made cutbacks, many in Hollywood despaired the two sides would ever be able to resolve their differences.

Now SAG's interim executive director David White and a group of top entertainment executives are "very close" to resolving most of the remaining sticking points that caused negotiations to break off in February, according to people familiar with the situation who asked not to be identified because they were not authorized to discuss the negotiations.

White has spent the last four weeks meeting privately with several top Hollywood executives, including Walt Disney Co. Chief Executive Bob Iger and News Corp. President Peter Chernin to end the standoff. Iger and Chernin played a pivotal role in helping to craft new contracts last year with Hollywood's directors and writers. They and other studio executives began talking among themselves last month about finding a way to end the impasse after receiving calls from big-name actors including Tom Hanks and George Clooney.

SAG spokeswoman Pamela Greenwalt said it was premature to comment about a breakthrough. "SAG's leadership remains engaged in ongoing efforts to secure a fair deal for SAG members," she said.

Although some points remain at issue, the agreement is said to include a compromise over the most contentious issue: when SAG's new contract would expire.

SAG leaders have insisted that their new contract run through June 2011 so that the union can line up its next round of negotiations with the expiring contracts of other Hollywood talent unions, including the American Federation of Television and Radio Artists and the Writers Guild of America. The studios, however, have insisted on a three-year term, which would push SAG's contract expiration into 2012.

If studios agree to SAG's demand for a shorter contract term, the actors union would likely have to give up something in return.

SAG chief negotiator John McGuire, who just negotiated a new commercials contract for SAG members, is expected to present the outlines of an agreement to the guild's negotiating task force Tuesday, which could set the stage for the return of formal negotiations with the Alliance of Motion Picture and Television Producers, which bargains on behalf of the studios but is dominated by heads of the major media companies.

The union's national board could vote on a final contract when it meets April 18.

White and McGuire are under heavy pressure to deliver a contract to the union's 120,000 members. They were recently installed by a moderate majority on the union's board that accused former leaders of mishandling negotiations and pushing SAG toward the brink of a strike.

-- Richard Verrier

No surprise: Los Angeles is losing share of TV pilot production

As if L.A. needed any more reminders of just how much production is leaving town, along comes fresh data to document the grim trend.

While much attention has focused on the migration of feature film production, a new survey highlights how the exodus of production is eroding another key segment of the local economy: the filming of television pilots.

TV pilots, the pool of contenders from which the networks choose their series, on average employ 150 people per show and have budgets from $3 to $5 million.

But as any location manager will tell you, this year's pilot season was a bust, reflecting a steady erosion in the local industry.

The number of pilots produced in L.A. fell nearly 42% to 59 from 101 between 2004 and 2009, according to a report from FilmL.A. Inc, the nonprofit group that handles film permits. In large measure that's because the networks are ordering fewer pilots as they rely more on reality programming in prime time.

But the survey also provides evidence that some of the loss is due to market share going to other locales. Consider: In 2004 L.A. hosted 81% of all pilots. That dropped to 57% in 2009. Of 103 pilots produced this year, 59 were shot in L.A. and 42 were produced outside California, mostly in Canada and states such as New Mexico, Louisiana and Illinois that offer film tax credits and rebates.

"The fact that so many of this year's pilots chose to film outside the area shows that no facet of the entertainment industry can be considered captive in Los Angeles,"  said FilmL.A. President Paul Audley.

-- Richard Verrier

Hollywood's largest actors union strongly endorsed a new film and TV contract, closing the chapter on a year-long dispute with the major studios.

The vote, which was expected to be close, drew a stronger show of support from the membership of the Screen Actors Guild, with 78% supporting the deal, and 22% opposing it.

The approval comes nearly a year after the guild's current contract expired and is largely similar to a deal the studios offered the union last fall. SAG's bargaining clout was hurt by the weak economy and a series of strategic missteps by the union's former chief negotiator, who was ousted in a boardroom revolt in January.

Although the contract was expected to be ratified, the vote puts to rest lingering fears in Hollywood that the entertainment industry would face another strike following last year's walkout by writers.

It could also help spur at least some independent film production that has been held up because of the dispute. The uncertainty had caused some insurance companies to stop issuing completion bonds -- ensuring that a film will be done on time and within budget -- that independent filmmakers depend on.

The contract was patterned after similar agreements negotiated last year by three other talent unions. It includes an immediate pay increase of 3% and for the first time gives actors residual pay for shows that streamed for free on websites like Hulu.

But SAG's members were sharply at odds over the terms. Stars lined up on either side of dueling campaigns. A group of A-list actors led by Tom Hanks and George Clooney backed the contract as the best that could be had in a difficult economic climate.

Another group that included former SAG President Ed Asner, Ed Harris and Martin Sheen blasted the agreement, saying it shortchanges actors for work that is distributed on the Internet.

Underscoring the divisions, the contract was supported by a majority of the board and the union's executive director, but opposed by the union's president, Alan Rosenberg, who vigorously campaigned against the contract.

Rosenberg was an ardent backer of former SAG executive director Doug Allen, who was ousted after a group of dissident actors won control of the board in elections last fall. They replaced him with veteran negotiator John McGuire and David White, the union's former general counsel.

--Richard Verrier

It may not do much to spur sluggish commercial production in Los Angeles, but the two unions representing Hollywood actors overwhelmingly backed new contracts covering their work in commercials.

Members of the Screen Actors Guild and its smaller sister union, the American Federation of Television and Radio Artists, voted 93% in favor of the contracts, which cover performers working in commercials made for and reused on television, radio, the Internet and other new media.

The agreements, which are retroactively effective to April 1, provide a 5% pay increase, contain about $24 million in increased contributions to the unions' health and pension plans and, for the first, time, establish a pay structure for work made for the Internet and other new media.

The sides also agreed to hire a consultant to conduct a two-year study to test a new way of paying actors. Advertisers, who've been hit hard by the recession and a long-term decline in national TV ad viewership, want to revamp the current "pay-for-play" system in which actors are paid based on how often and where a spot runs. Instead, they favor a "gross-rating points" system, in which residuals would be tied to viewership. The unions, however, rejected the demand but agreed to study the proposal.

The strong endorsement was expected as the boards of both unions had unanimously endorsed the agreements, which cover more than 30,000 actors who work in commercials.

Next up for SAG is the vote on the film and TV contract, which members are expected to ratify June 9, although that vote probably will be much closer because the union is deeply divided over the proposed terms. AFTRA approved its film and TV contract last year.

— Richard Verrier

Hollywood's entertainment unions, which often clash over bargaining strategy, finally have something they can rally around (surprise): the right of workers to form a union.

As debate in Washington heats up over the proposed Employee Free Choice Act, unions representing actors, writers, directors and crew members collaborated with umbrella organization AFL-CIO to produce a video in support of the legislation, designed to lift roadblocks to unionization.

The three-minute online video features testimonials from 47 performers and actors, including F. Murray Abraham, actor-comedian Jerry Stiller and Amy Brenneman, star of the TV series "Private Practice."

"People associate actors with fame and glory. The truth is, for a long time my union contract was the reason I could support my family,'' Brenneman said in a statement. "Each worker, regardless of their field, deserves the freedom to bargain for a contract, for a better life."

Among the participants in the video are the presidents of two Hollywood unions who have no love lost for each other: Alan Rosenberg from SAG, and Roberta Reardon from the smaller actors union, the American Federation of Television and Radio Artists. The two unions suspended their longstanding joint bargaining agreement last year after a series of disputes.

Even nemeses can occasionally put aside their differences when it comes to the union label.

— Richard Verrier

Hollywood's largest actors union is cutting 8% of its staff in the face of investment losses and declining membership dues.

The Screen Actors Guild plans to cut about 35 workers from its payroll to close a $6.5-million deficit in the union's fiscal 2009 budget. The cuts span several departments and includes those who work in the union's organizing and information technology departments, according to people familiar with the matter. Affected workers will be notified this week. SAG has about 440 employees.

David White, interim director of the Screen Actors Guild, briefed board members on the planned layoffs on Saturday when they approved the union's annual $60-million annual budget. White told board members the cuts were needed to balance the budget and leave enough cash in reserves to cover at least six months of operations.

The guild's income stream has been hit on two fronts: investment income, which is down sharply due to the turmoil in stock markets, and membership dues, which are tied to how much actors earn.

Fewer actors have been working as studios curtail production on movies and TV shows. SAG also has lost work to its rival union, the American Federation of Television and Radio Artists, whose labor contracts now dominate prime-time TV pilots.

At the same time, SAG's expenses have risen sharply. Over the last two years, the guild has added 100 people to its staff, partly for organizational outreach activities.

The Writers Guild of America, West,  recently cut 10 % of its staff to close a budget shortfall, which guild officials blamed on investment losses and a sharp falloff in jobs for writers during the last year, when the guild waged a 100-day strike.

-- Richard Verrier

Negotiators for the Screen Actors Guild and the major studios have reached a tentative agreement on a new two-year contract for the union's 120,000 members.

Sources close to the talks say the union's negotiating task force will be briefed today on the proposed agreement, which is expected to be voted on by SAG's 71-member national board on Sunday.

Actors have been working without a contract for nine months as previous attempts at negotiations with the studios collapsed.

The contract contains some minor improvements over previous offers but is largely similar to the one studios presented to SAG nine months ago. That is certain to raise questions about what the union  accomplished by holding out so long to secure a deal after other talent unions secured their own contracts with the studios.

The agreement was hashed out after weeks of back-channel talks involving between SAG interim executive director David White and top media executives, principally Walt Disney Co. CEO Bob Iger and Warner Bros. chairman  Barry Meyer.

Talks were revived after the union's former chief negotiator was ousted by moderates who took control of SAG's board in elections last year.

The breakthrough came earlier this month when the sides reached a compromise over the most contentious issue: the expiration date of a new contract. SAG leaders insisted that their new contract run through June 2011 so that the union could line up its next round of negotiations with the expiring contracts of other Hollywood talent unions. The studios, however, wanted a three-year term, which would push SAG's contract expiration into 2012.

-- Richard Verrier

 

For weeks, the major studios insisted they would never agree to a demand by Hollywood's biggest actors union to have its next contract expire at the same time as those of other talent guilds. 

Now, after back-channel talks between Screen Actors Guild leaders and top entertainment executives, the studios have conceded just that, lifting a stumbling block that broke off negotiations over a new contract in February.

Turns out, however, that the studios' offer comes with a big hitch that may not sit well with hundreds of actors who lost their jobs during the 100-day writers strike. In return for a two-year rather than a three-year contract term, the actors union would agree to settle so-called force majeure claims it filed last year seeking more than $10 million in pay.

After the writers strike ended in February 2008, SAG lodged claims against more than 80 shows on behalf of "series regulars" -- which encompass stars as well as those with a recurring role in a show -- who lost their jobs and wages during the writers walkout. The strike shut down popular series such as "Lost," "CSI" and "Ugly Betty."

SAG maintained that producers violated a force majeure clause in the union's contract that entitled actors to receive roughly 2-1/2 weeks' pay if they were suspended as a result of an "act of God," such as foul weather. The studios, however, balked at paying the claims and accused SAG of overreaching.

Studios want to impose a stricter interpretation of the force majeure clause and have offered to settle the outstanding claims for less than what the actors contend they are owed. How much less is unknown, however.

SAG interim Executive Director David White and Chief Negotiator John McGuire have indicated that they would accept the studios' demand as a necessary concession to preserve the larger goal of aligning the expiration of the actors contract with those of other guilds. They are especially keen to have SAG's contract expire at the same time as that of the smaller actors union, the American Federation of Television and Radio Artists, to gain maximum leverage at the bargaining table.

Expect fireworks from dissidents. The force majeure issue will almost certainly be seized on by White's opponents in the actors guild, who've vowed to campaign to defeat a contract they view as an inferior deal. The actors have been working without a contract for nine months. 

Nonetheless, the new SAG leaders, who were installed after the board fired former Chief Negotiator Doug Allen, retain the support of the board majority. And in the end, most members, weary of working without a contract and anxious about the deepening recession, are expected to support whatever contract their board recommends.

-- Richard Verrier

After weeks of back-channel talks, Hollywood's biggest actor union and the major studios appear to have broken their logjam and could be close to reaching an agreement on a new three-year contract, according to people close to the situation.

The agreement would come as a breakthrough for the Screen Actors Guild, whose members have been working without a contract for nine months as various attempts at negotiations with the studios collapsed amid acrimony and frustration. Talks picked up again after the union's former chief negotiator was ousted by moderates who took control of SAG's board in elections late last year.

Only a month ago, as the economy worsened and more workers in the entertainment industry found themselves without jobs and studios made cutbacks, many in Hollywood despaired the two sides would ever be able to resolve their differences.

Now SAG's interim executive director David White and a group of top entertainment executives are "very close" to resolving most of the remaining sticking points that caused negotiations to break off in February, according to people familiar with the situation who asked not to be identified because they were not authorized to discuss the negotiations.

White has spent the last four weeks meeting privately with several top Hollywood executives, including Walt Disney Co. Chief Executive Bob Iger and News Corp. President Peter Chernin to end the standoff. Iger and Chernin played a pivotal role in helping to craft new contracts last year with Hollywood's directors and writers. They and other studio executives began talking among themselves last month about finding a way to end the impasse after receiving calls from big-name actors including Tom Hanks and George Clooney.

SAG spokeswoman Pamela Greenwalt said it was premature to comment about a breakthrough. "SAG's leadership remains engaged in ongoing efforts to secure a fair deal for SAG members," she said.

Although some points remain at issue, the agreement is said to include a compromise over the most contentious issue: when SAG's new contract would expire.

SAG leaders have insisted that their new contract run through June 2011 so that the union can line up its next round of negotiations with the expiring contracts of other Hollywood talent unions, including the American Federation of Television and Radio Artists and the Writers Guild of America. The studios, however, have insisted on a three-year term, which would push SAG's contract expiration into 2012.

If studios agree to SAG's demand for a shorter contract term, the actors union would likely have to give up something in return.

SAG chief negotiator John McGuire, who just negotiated a new commercials contract for SAG members, is expected to present the outlines of an agreement to the guild's negotiating task force Tuesday, which could set the stage for the return of formal negotiations with the Alliance of Motion Picture and Television Producers, which bargains on behalf of the studios but is dominated by heads of the major media companies.

The union's national board could vote on a final contract when it meets April 18.

White and McGuire are under heavy pressure to deliver a contract to the union's 120,000 members. They were recently installed by a moderate majority on the union's board that accused former leaders of mishandling negotiations and pushing SAG toward the brink of a strike.

-- Richard Verrier

SAG members, finally, approve contract

Hollywood's largest actors union strongly endorsed a new film and TV contract, closing the chapter on a year-long dispute with the major studios.

The vote, which was expected to be close, drew a stronger show of support from the membership of the Screen Actors Guild, with 78% supporting the deal, and 22% opposing it.

The approval comes nearly a year after the guild's current contract expired and is largely similar to a deal the studios offered the union last fall. SAG's bargaining clout was hurt by the weak economy and a series of strategic missteps by the union's former chief negotiator, who was ousted in a boardroom revolt in January.

Although the contract was expected to be ratified, the vote puts to rest lingering fears in Hollywood that the entertainment industry would face another strike following last year's walkout by writers.

It could also help spur at least some independent film production that has been held up because of the dispute. The uncertainty had caused some insurance companies to stop issuing completion bonds -- ensuring that a film will be done on time and within budget -- that independent filmmakers depend on.

The contract was patterned after similar agreements negotiated last year by three other talent unions. It includes an immediate pay increase of 3% and for the first time gives actors residual pay for shows that streamed for free on websites like Hulu.

But SAG's members were sharply at odds over the terms. Stars lined up on either side of dueling campaigns. A group of A-list actors led by Tom Hanks and George Clooney backed the contract as the best that could be had in a difficult economic climate.

Another group that included former SAG President Ed Asner, Ed Harris and Martin Sheen blasted the agreement, saying it shortchanges actors for work that is distributed on the Internet.

Underscoring the divisions, the contract was supported by a majority of the board and the union's executive director, but opposed by the union's president, Alan Rosenberg, who vigorously campaigned against the contract.

Rosenberg was an ardent backer of former SAG executive director Doug Allen, who was ousted after a group of dissident actors won control of the board in elections last fall. They replaced him with veteran negotiator John McGuire and David White, the union's former general counsel.

--Richard Verrier

It may not do much to spur sluggish commercial production in Los Angeles, but the two unions representing Hollywood actors overwhelmingly backed new contracts covering their work in commercials.

Members of the Screen Actors Guild and its smaller sister union, the American Federation of Television and Radio Artists, voted 93% in favor of the contracts, which cover performers working in commercials made for and reused on television, radio, the Internet and other new media.

The agreements, which are retroactively effective to April 1, provide a 5% pay increase, contain about $24 million in increased contributions to the unions' health and pension plans and, for the first, time, establish a pay structure for work made for the Internet and other new media.

The sides also agreed to hire a consultant to conduct a two-year study to test a new way of paying actors. Advertisers, who've been hit hard by the recession and a long-term decline in national TV ad viewership, want to revamp the current "pay-for-play" system in which actors are paid based on how often and where a spot runs. Instead, they favor a "gross-rating points" system, in which residuals would be tied to viewership. The unions, however, rejected the demand but agreed to study the proposal.

The strong endorsement was expected as the boards of both unions had unanimously endorsed the agreements, which cover more than 30,000 actors who work in commercials.

Next up for SAG is the vote on the film and TV contract, which members are expected to ratify June 9, although that vote probably will be much closer because the union is deeply divided over the proposed terms. AFTRA approved its film and TV contract last year.

— Richard Verrier

Hollywood's entertainment unions, which often clash over bargaining strategy, finally have something they can rally around (surprise): the right of workers to form a union.

As debate in Washington heats up over the proposed Employee Free Choice Act, unions representing actors, writers, directors and crew members collaborated with umbrella organization AFL-CIO to produce a video in support of the legislation, designed to lift roadblocks to unionization.

The three-minute online video features testimonials from 47 performers and actors, including F. Murray Abraham, actor-comedian Jerry Stiller and Amy Brenneman, star of the TV series "Private Practice."

"People associate actors with fame and glory. The truth is, for a long time my union contract was the reason I could support my family,'' Brenneman said in a statement. "Each worker, regardless of their field, deserves the freedom to bargain for a contract, for a better life."

Among the participants in the video are the presidents of two Hollywood unions who have no love lost for each other: Alan Rosenberg from SAG, and Roberta Reardon from the smaller actors union, the American Federation of Television and Radio Artists. The two unions suspended their longstanding joint bargaining agreement last year after a series of disputes.

Even nemeses can occasionally put aside their differences when it comes to the union label.

— Richard Verrier

Hollywood's largest actors union is cutting 8% of its staff in the face of investment losses and declining membership dues.

The Screen Actors Guild plans to cut about 35 workers from its payroll to close a $6.5-million deficit in the union's fiscal 2009 budget. The cuts span several departments and includes those who work in the union's organizing and information technology departments, according to people familiar with the matter. Affected workers will be notified this week. SAG has about 440 employees.

David White, interim director of the Screen Actors Guild, briefed board members on the planned layoffs on Saturday when they approved the union's annual $60-million annual budget. White told board members the cuts were needed to balance the budget and leave enough cash in reserves to cover at least six months of operations.

The guild's income stream has been hit on two fronts: investment income, which is down sharply due to the turmoil in stock markets, and membership dues, which are tied to how much actors earn.

Fewer actors have been working as studios curtail production on movies and TV shows. SAG also has lost work to its rival union, the American Federation of Television and Radio Artists, whose labor contracts now dominate prime-time TV pilots.

At the same time, SAG's expenses have risen sharply. Over the last two years, the guild has added 100 people to its staff, partly for organizational outreach activities.

The Writers Guild of America, West,  recently cut 10 % of its staff to close a budget shortfall, which guild officials blamed on investment losses and a sharp falloff in jobs for writers during the last year, when the guild waged a 100-day strike.

-- Richard Verrier

Negotiators for the Screen Actors Guild and the major studios have reached a tentative agreement on a new two-year contract for the union's 120,000 members.

Sources close to the talks say the union's negotiating task force will be briefed today on the proposed agreement, which is expected to be voted on by SAG's 71-member national board on Sunday.

Actors have been working without a contract for nine months as previous attempts at negotiations with the studios collapsed.

The contract contains some minor improvements over previous offers but is largely similar to the one studios presented to SAG nine months ago. That is certain to raise questions about what the union  accomplished by holding out so long to secure a deal after other talent unions secured their own contracts with the studios.

The agreement was hashed out after weeks of back-channel talks involving between SAG interim executive director David White and top media executives, principally Walt Disney Co. CEO Bob Iger and Warner Bros. chairman  Barry Meyer.

Talks were revived after the union's former chief negotiator was ousted by moderates who took control of SAG's board in elections last year.

The breakthrough came earlier this month when the sides reached a compromise over the most contentious issue: the expiration date of a new contract. SAG leaders insisted that their new contract run through June 2011 so that the union could line up its next round of negotiations with the expiring contracts of other Hollywood talent unions. The studios, however, wanted a three-year term, which would push SAG's contract expiration into 2012.

-- Richard Verrier

 

For weeks, the major studios insisted they would never agree to a demand by Hollywood's biggest actors union to have its next contract expire at the same time as those of other talent guilds. 

Now, after back-channel talks between Screen Actors Guild leaders and top entertainment executives, the studios have conceded just that, lifting a stumbling block that broke off negotiations over a new contract in February.

Turns out, however, that the studios' offer comes with a big hitch that may not sit well with hundreds of actors who lost their jobs during the 100-day writers strike. In return for a two-year rather than a three-year contract term, the actors union would agree to settle so-called force majeure claims it filed last year seeking more than $10 million in pay.

After the writers strike ended in February 2008, SAG lodged claims against more than 80 shows on behalf of "series regulars" -- which encompass stars as well as those with a recurring role in a show -- who lost their jobs and wages during the writers walkout. The strike shut down popular series such as "Lost," "CSI" and "Ugly Betty."

SAG maintained that producers violated a force majeure clause in the union's contract that entitled actors to receive roughly 2-1/2 weeks' pay if they were suspended as a result of an "act of God," such as foul weather. The studios, however, balked at paying the claims and accused SAG of overreaching.

Studios want to impose a stricter interpretation of the force majeure clause and have offered to settle the outstanding claims for less than what the actors contend they are owed. How much less is unknown, however.

SAG interim Executive Director David White and Chief Negotiator John McGuire have indicated that they would accept the studios' demand as a necessary concession to preserve the larger goal of aligning the expiration of the actors contract with those of other guilds. They are especially keen to have SAG's contract expire at the same time as that of the smaller actors union, the American Federation of Television and Radio Artists, to gain maximum leverage at the bargaining table.

Expect fireworks from dissidents. The force majeure issue will almost certainly be seized on by White's opponents in the actors guild, who've vowed to campaign to defeat a contract they view as an inferior deal. The actors have been working without a contract for nine months. 

Nonetheless, the new SAG leaders, who were installed after the board fired former Chief Negotiator Doug Allen, retain the support of the board majority. And in the end, most members, weary of working without a contract and anxious about the deepening recession, are expected to support whatever contract their board recommends.

-- Richard Verrier

After weeks of back-channel talks, Hollywood's biggest actor union and the major studios appear to have broken their logjam and could be close to reaching an agreement on a new three-year contract, according to people close to the situation.

The agreement would come as a breakthrough for the Screen Actors Guild, whose members have been working without a contract for nine months as various attempts at negotiations with the studios collapsed amid acrimony and frustration. Talks picked up again after the union's former chief negotiator was ousted by moderates who took control of SAG's board in elections late last year.

Only a month ago, as the economy worsened and more workers in the entertainment industry found themselves without jobs and studios made cutbacks, many in Hollywood despaired the two sides would ever be able to resolve their differences.

Now SAG's interim executive director David White and a group of top entertainment executives are "very close" to resolving most of the remaining sticking points that caused negotiations to break off in February, according to people familiar with the situation who asked not to be identified because they were not authorized to discuss the negotiations.

White has spent the last four weeks meeting privately with several top Hollywood executives, including Walt Disney Co. Chief Executive Bob Iger and News Corp. President Peter Chernin to end the standoff. Iger and Chernin played a pivotal role in helping to craft new contracts last year with Hollywood's directors and writers. They and other studio executives began talking among themselves last month about finding a way to end the impasse after receiving calls from big-name actors including Tom Hanks and George Clooney.

SAG spokeswoman Pamela Greenwalt said it was premature to comment about a breakthrough. "SAG's leadership remains engaged in ongoing efforts to secure a fair deal for SAG members," she said.

Although some points remain at issue, the agreement is said to include a compromise over the most contentious issue: when SAG's new contract would expire.

SAG leaders have insisted that their new contract run through June 2011 so that the union can line up its next round of negotiations with the expiring contracts of other Hollywood talent unions, including the American Federation of Television and Radio Artists and the Writers Guild of America. The studios, however, have insisted on a three-year term, which would push SAG's contract expiration into 2012.

If studios agree to SAG's demand for a shorter contract term, the actors union would likely have to give up something in return.

SAG chief negotiator John McGuire, who just negotiated a new commercials contract for SAG members, is expected to present the outlines of an agreement to the guild's negotiating task force Tuesday, which could set the stage for the return of formal negotiations with the Alliance of Motion Picture and Television Producers, which bargains on behalf of the studios but is dominated by heads of the major media companies.

The union's national board could vote on a final contract when it meets April 18.

White and McGuire are under heavy pressure to deliver a contract to the union's 120,000 members. They were recently installed by a moderate majority on the union's board that accused former leaders of mishandling negotiations and pushing SAG toward the brink of a strike.

-- Richard Verrier

Actors ratify commercials contracts

It may not do much to spur sluggish commercial production in Los Angeles, but the two unions representing Hollywood actors overwhelmingly backed new contracts covering their work in commercials.

Members of the Screen Actors Guild and its smaller sister union, the American Federation of Television and Radio Artists, voted 93% in favor of the contracts, which cover performers working in commercials made for and reused on television, radio, the Internet and other new media.

The agreements, which are retroactively effective to April 1, provide a 5% pay increase, contain about $24 million in increased contributions to the unions' health and pension plans and, for the first, time, establish a pay structure for work made for the Internet and other new media.

The sides also agreed to hire a consultant to conduct a two-year study to test a new way of paying actors. Advertisers, who've been hit hard by the recession and a long-term decline in national TV ad viewership, want to revamp the current "pay-for-play" system in which actors are paid based on how often and where a spot runs. Instead, they favor a "gross-rating points" system, in which residuals would be tied to viewership. The unions, however, rejected the demand but agreed to study the proposal.

The strong endorsement was expected as the boards of both unions had unanimously endorsed the agreements, which cover more than 30,000 actors who work in commercials.

Next up for SAG is the vote on the film and TV contract, which members are expected to ratify June 9, although that vote probably will be much closer because the union is deeply divided over the proposed terms. AFTRA approved its film and TV contract last year.

— Richard Verrier

Hollywood's entertainment unions, which often clash over bargaining strategy, finally have something they can rally around (surprise): the right of workers to form a union.

As debate in Washington heats up over the proposed Employee Free Choice Act, unions representing actors, writers, directors and crew members collaborated with umbrella organization AFL-CIO to produce a video in support of the legislation, designed to lift roadblocks to unionization.

The three-minute online video features testimonials from 47 performers and actors, including F. Murray Abraham, actor-comedian Jerry Stiller and Amy Brenneman, star of the TV series "Private Practice."

"People associate actors with fame and glory. The truth is, for a long time my union contract was the reason I could support my family,'' Brenneman said in a statement. "Each worker, regardless of their field, deserves the freedom to bargain for a contract, for a better life."

Among the participants in the video are the presidents of two Hollywood unions who have no love lost for each other: Alan Rosenberg from SAG, and Roberta Reardon from the smaller actors union, the American Federation of Television and Radio Artists. The two unions suspended their longstanding joint bargaining agreement last year after a series of disputes.

Even nemeses can occasionally put aside their differences when it comes to the union label.

— Richard Verrier

Hollywood's largest actors union is cutting 8% of its staff in the face of investment losses and declining membership dues.

The Screen Actors Guild plans to cut about 35 workers from its payroll to close a $6.5-million deficit in the union's fiscal 2009 budget. The cuts span several departments and includes those who work in the union's organizing and information technology departments, according to people familiar with the matter. Affected workers will be notified this week. SAG has about 440 employees.

David White, interim director of the Screen Actors Guild, briefed board members on the planned layoffs on Saturday when they approved the union's annual $60-million annual budget. White told board members the cuts were needed to balance the budget and leave enough cash in reserves to cover at least six months of operations.

The guild's income stream has been hit on two fronts: investment income, which is down sharply due to the turmoil in stock markets, and membership dues, which are tied to how much actors earn.

Fewer actors have been working as studios curtail production on movies and TV shows. SAG also has lost work to its rival union, the American Federation of Television and Radio Artists, whose labor contracts now dominate prime-time TV pilots.

At the same time, SAG's expenses have risen sharply. Over the last two years, the guild has added 100 people to its staff, partly for organizational outreach activities.

The Writers Guild of America, West,  recently cut 10 % of its staff to close a budget shortfall, which guild officials blamed on investment losses and a sharp falloff in jobs for writers during the last year, when the guild waged a 100-day strike.

-- Richard Verrier

Negotiators for the Screen Actors Guild and the major studios have reached a tentative agreement on a new two-year contract for the union's 120,000 members.

Sources close to the talks say the union's negotiating task force will be briefed today on the proposed agreement, which is expected to be voted on by SAG's 71-member national board on Sunday.

Actors have been working without a contract for nine months as previous attempts at negotiations with the studios collapsed.

The contract contains some minor improvements over previous offers but is largely similar to the one studios presented to SAG nine months ago. That is certain to raise questions about what the union  accomplished by holding out so long to secure a deal after other talent unions secured their own contracts with the studios.

The agreement was hashed out after weeks of back-channel talks involving between SAG interim executive director David White and top media executives, principally Walt Disney Co. CEO Bob Iger and Warner Bros. chairman  Barry Meyer.

Talks were revived after the union's former chief negotiator was ousted by moderates who took control of SAG's board in elections last year.

The breakthrough came earlier this month when the sides reached a compromise over the most contentious issue: the expiration date of a new contract. SAG leaders insisted that their new contract run through June 2011 so that the union could line up its next round of negotiations with the expiring contracts of other Hollywood talent unions. The studios, however, wanted a three-year term, which would push SAG's contract expiration into 2012.

-- Richard Verrier

 

For weeks, the major studios insisted they would never agree to a demand by Hollywood's biggest actors union to have its next contract expire at the same time as those of other talent guilds. 

Now, after back-channel talks between Screen Actors Guild leaders and top entertainment executives, the studios have conceded just that, lifting a stumbling block that broke off negotiations over a new contract in February.

Turns out, however, that the studios' offer comes with a big hitch that may not sit well with hundreds of actors who lost their jobs during the 100-day writers strike. In return for a two-year rather than a three-year contract term, the actors union would agree to settle so-called force majeure claims it filed last year seeking more than $10 million in pay.

After the writers strike ended in February 2008, SAG lodged claims against more than 80 shows on behalf of "series regulars" -- which encompass stars as well as those with a recurring role in a show -- who lost their jobs and wages during the writers walkout. The strike shut down popular series such as "Lost," "CSI" and "Ugly Betty."

SAG maintained that producers violated a force majeure clause in the union's contract that entitled actors to receive roughly 2-1/2 weeks' pay if they were suspended as a result of an "act of God," such as foul weather. The studios, however, balked at paying the claims and accused SAG of overreaching.

Studios want to impose a stricter interpretation of the force majeure clause and have offered to settle the outstanding claims for less than what the actors contend they are owed. How much less is unknown, however.

SAG interim Executive Director David White and Chief Negotiator John McGuire have indicated that they would accept the studios' demand as a necessary concession to preserve the larger goal of aligning the expiration of the actors contract with those of other guilds. They are especially keen to have SAG's contract expire at the same time as that of the smaller actors union, the American Federation of Television and Radio Artists, to gain maximum leverage at the bargaining table.

Expect fireworks from dissidents. The force majeure issue will almost certainly be seized on by White's opponents in the actors guild, who've vowed to campaign to defeat a contract they view as an inferior deal. The actors have been working without a contract for nine months. 

Nonetheless, the new SAG leaders, who were installed after the board fired former Chief Negotiator Doug Allen, retain the support of the board majority. And in the end, most members, weary of working without a contract and anxious about the deepening recession, are expected to support whatever contract their board recommends.

-- Richard Verrier

After weeks of back-channel talks, Hollywood's biggest actor union and the major studios appear to have broken their logjam and could be close to reaching an agreement on a new three-year contract, according to people close to the situation.

The agreement would come as a breakthrough for the Screen Actors Guild, whose members have been working without a contract for nine months as various attempts at negotiations with the studios collapsed amid acrimony and frustration. Talks picked up again after the union's former chief negotiator was ousted by moderates who took control of SAG's board in elections late last year.

Only a month ago, as the economy worsened and more workers in the entertainment industry found themselves without jobs and studios made cutbacks, many in Hollywood despaired the two sides would ever be able to resolve their differences.

Now SAG's interim executive director David White and a group of top entertainment executives are "very close" to resolving most of the remaining sticking points that caused negotiations to break off in February, according to people familiar with the situation who asked not to be identified because they were not authorized to discuss the negotiations.

White has spent the last four weeks meeting privately with several top Hollywood executives, including Walt Disney Co. Chief Executive Bob Iger and News Corp. President Peter Chernin to end the standoff. Iger and Chernin played a pivotal role in helping to craft new contracts last year with Hollywood's directors and writers. They and other studio executives began talking among themselves last month about finding a way to end the impasse after receiving calls from big-name actors including Tom Hanks and George Clooney.

SAG spokeswoman Pamela Greenwalt said it was premature to comment about a breakthrough. "SAG's leadership remains engaged in ongoing efforts to secure a fair deal for SAG members," she said.

Although some points remain at issue, the agreement is said to include a compromise over the most contentious issue: when SAG's new contract would expire.

SAG leaders have insisted that their new contract run through June 2011 so that the union can line up its next round of negotiations with the expiring contracts of other Hollywood talent unions, including the American Federation of Television and Radio Artists and the Writers Guild of America. The studios, however, have insisted on a three-year term, which would push SAG's contract expiration into 2012.

If studios agree to SAG's demand for a shorter contract term, the actors union would likely have to give up something in return.

SAG chief negotiator John McGuire, who just negotiated a new commercials contract for SAG members, is expected to present the outlines of an agreement to the guild's negotiating task force Tuesday, which could set the stage for the return of formal negotiations with the Alliance of Motion Picture and Television Producers, which bargains on behalf of the studios but is dominated by heads of the major media companies.

The union's national board could vote on a final contract when it meets April 18.

White and McGuire are under heavy pressure to deliver a contract to the union's 120,000 members. They were recently installed by a moderate majority on the union's board that accused former leaders of mishandling negotiations and pushing SAG toward the brink of a strike.

-- Richard Verrier

Hollywood unions come together -- for a change

Hollywood's entertainment unions, which often clash over bargaining strategy, finally have something they can rally around (surprise): the right of workers to form a union.

As debate in Washington heats up over the proposed Employee Free Choice Act, unions representing actors, writers, directors and crew members collaborated with umbrella organization AFL-CIO to produce a video in support of the legislation, designed to lift roadblocks to unionization.

The three-minute online video features testimonials from 47 performers and actors, including F. Murray Abraham, actor-comedian Jerry Stiller and Amy Brenneman, star of the TV series "Private Practice."

"People associate actors with fame and glory. The truth is, for a long time my union contract was the reason I could support my family,'' Brenneman said in a statement. "Each worker, regardless of their field, deserves the freedom to bargain for a contract, for a better life."

Among the participants in the video are the presidents of two Hollywood unions who have no love lost for each other: Alan Rosenberg from SAG, and Roberta Reardon from the smaller actors union, the American Federation of Television and Radio Artists. The two unions suspended their longstanding joint bargaining agreement last year after a series of disputes.

Even nemeses can occasionally put aside their differences when it comes to the union label.

— Richard Verrier

Hollywood's largest actors union is cutting 8% of its staff in the face of investment losses and declining membership dues.

The Screen Actors Guild plans to cut about 35 workers from its payroll to close a $6.5-million deficit in the union's fiscal 2009 budget. The cuts span several departments and includes those who work in the union's organizing and information technology departments, according to people familiar with the matter. Affected workers will be notified this week. SAG has about 440 employees.

David White, interim director of the Screen Actors Guild, briefed board members on the planned layoffs on Saturday when they approved the union's annual $60-million annual budget. White told board members the cuts were needed to balance the budget and leave enough cash in reserves to cover at least six months of operations.

The guild's income stream has been hit on two fronts: investment income, which is down sharply due to the turmoil in stock markets, and membership dues, which are tied to how much actors earn.

Fewer actors have been working as studios curtail production on movies and TV shows. SAG also has lost work to its rival union, the American Federation of Television and Radio Artists, whose labor contracts now dominate prime-time TV pilots.

At the same time, SAG's expenses have risen sharply. Over the last two years, the guild has added 100 people to its staff, partly for organizational outreach activities.

The Writers Guild of America, West,  recently cut 10 % of its staff to close a budget shortfall, which guild officials blamed on investment losses and a sharp falloff in jobs for writers during the last year, when the guild waged a 100-day strike.

-- Richard Verrier

Negotiators for the Screen Actors Guild and the major studios have reached a tentative agreement on a new two-year contract for the union's 120,000 members.

Sources close to the talks say the union's negotiating task force will be briefed today on the proposed agreement, which is expected to be voted on by SAG's 71-member national board on Sunday.

Actors have been working without a contract for nine months as previous attempts at negotiations with the studios collapsed.

The contract contains some minor improvements over previous offers but is largely similar to the one studios presented to SAG nine months ago. That is certain to raise questions about what the union  accomplished by holding out so long to secure a deal after other talent unions secured their own contracts with the studios.

The agreement was hashed out after weeks of back-channel talks involving between SAG interim executive director David White and top media executives, principally Walt Disney Co. CEO Bob Iger and Warner Bros. chairman  Barry Meyer.

Talks were revived after the union's former chief negotiator was ousted by moderates who took control of SAG's board in elections last year.

The breakthrough came earlier this month when the sides reached a compromise over the most contentious issue: the expiration date of a new contract. SAG leaders insisted that their new contract run through June 2011 so that the union could line up its next round of negotiations with the expiring contracts of other Hollywood talent unions. The studios, however, wanted a three-year term, which would push SAG's contract expiration into 2012.

-- Richard Verrier

 

For weeks, the major studios insisted they would never agree to a demand by Hollywood's biggest actors union to have its next contract expire at the same time as those of other talent guilds. 

Now, after back-channel talks between Screen Actors Guild leaders and top entertainment executives, the studios have conceded just that, lifting a stumbling block that broke off negotiations over a new contract in February.

Turns out, however, that the studios' offer comes with a big hitch that may not sit well with hundreds of actors who lost their jobs during the 100-day writers strike. In return for a two-year rather than a three-year contract term, the actors union would agree to settle so-called force majeure claims it filed last year seeking more than $10 million in pay.

After the writers strike ended in February 2008, SAG lodged claims against more than 80 shows on behalf of "series regulars" -- which encompass stars as well as those with a recurring role in a show -- who lost their jobs and wages during the writers walkout. The strike shut down popular series such as "Lost," "CSI" and "Ugly Betty."

SAG maintained that producers violated a force majeure clause in the union's contract that entitled actors to receive roughly 2-1/2 weeks' pay if they were suspended as a result of an "act of God," such as foul weather. The studios, however, balked at paying the claims and accused SAG of overreaching.

Studios want to impose a stricter interpretation of the force majeure clause and have offered to settle the outstanding claims for less than what the actors contend they are owed. How much less is unknown, however.

SAG interim Executive Director David White and Chief Negotiator John McGuire have indicated that they would accept the studios' demand as a necessary concession to preserve the larger goal of aligning the expiration of the actors contract with those of other guilds. They are especially keen to have SAG's contract expire at the same time as that of the smaller actors union, the American Federation of Television and Radio Artists, to gain maximum leverage at the bargaining table.

Expect fireworks from dissidents. The force majeure issue will almost certainly be seized on by White's opponents in the actors guild, who've vowed to campaign to defeat a contract they view as an inferior deal. The actors have been working without a contract for nine months. 

Nonetheless, the new SAG leaders, who were installed after the board fired former Chief Negotiator Doug Allen, retain the support of the board majority. And in the end, most members, weary of working without a contract and anxious about the deepening recession, are expected to support whatever contract their board recommends.

-- Richard Verrier

After weeks of back-channel talks, Hollywood's biggest actor union and the major studios appear to have broken their logjam and could be close to reaching an agreement on a new three-year contract, according to people close to the situation.

The agreement would come as a breakthrough for the Screen Actors Guild, whose members have been working without a contract for nine months as various attempts at negotiations with the studios collapsed amid acrimony and frustration. Talks picked up again after the union's former chief negotiator was ousted by moderates who took control of SAG's board in elections late last year.

Only a month ago, as the economy worsened and more workers in the entertainment industry found themselves without jobs and studios made cutbacks, many in Hollywood despaired the two sides would ever be able to resolve their differences.

Now SAG's interim executive director David White and a group of top entertainment executives are "very close" to resolving most of the remaining sticking points that caused negotiations to break off in February, according to people familiar with the situation who asked not to be identified because they were not authorized to discuss the negotiations.

White has spent the last four weeks meeting privately with several top Hollywood executives, including Walt Disney Co. Chief Executive Bob Iger and News Corp. President Peter Chernin to end the standoff. Iger and Chernin played a pivotal role in helping to craft new contracts last year with Hollywood's directors and writers. They and other studio executives began talking among themselves last month about finding a way to end the impasse after receiving calls from big-name actors including Tom Hanks and George Clooney.

SAG spokeswoman Pamela Greenwalt said it was premature to comment about a breakthrough. "SAG's leadership remains engaged in ongoing efforts to secure a fair deal for SAG members," she said.

Although some points remain at issue, the agreement is said to include a compromise over the most contentious issue: when SAG's new contract would expire.

SAG leaders have insisted that their new contract run through June 2011 so that the union can line up its next round of negotiations with the expiring contracts of other Hollywood talent unions, including the American Federation of Television and Radio Artists and the Writers Guild of America. The studios, however, have insisted on a three-year term, which would push SAG's contract expiration into 2012.

If studios agree to SAG's demand for a shorter contract term, the actors union would likely have to give up something in return.

SAG chief negotiator John McGuire, who just negotiated a new commercials contract for SAG members, is expected to present the outlines of an agreement to the guild's negotiating task force Tuesday, which could set the stage for the return of formal negotiations with the Alliance of Motion Picture and Television Producers, which bargains on behalf of the studios but is dominated by heads of the major media companies.

The union's national board could vote on a final contract when it meets April 18.

White and McGuire are under heavy pressure to deliver a contract to the union's 120,000 members. They were recently installed by a moderate majority on the union's board that accused former leaders of mishandling negotiations and pushing SAG toward the brink of a strike.

-- Richard Verrier

Screen Actors Guild to lay off 8% of its staff

Hollywood's largest actors union is cutting 8% of its staff in the face of investment losses and declining membership dues.

The Screen Actors Guild plans to cut about 35 workers from its payroll to close a $6.5-million deficit in the union's fiscal 2009 budget. The cuts span several departments and includes those who work in the union's organizing and information technology departments, according to people familiar with the matter. Affected workers will be notified this week. SAG has about 440 employees.

David White, interim director of the Screen Actors Guild, briefed board members on the planned layoffs on Saturday when they approved the union's annual $60-million annual budget. White told board members the cuts were needed to balance the budget and leave enough cash in reserves to cover at least six months of operations.

The guild's income stream has been hit on two fronts: investment income, which is down sharply due to the turmoil in stock markets, and membership dues, which are tied to how much actors earn.

Fewer actors have been working as studios curtail production on movies and TV shows. SAG also has lost work to its rival union, the American Federation of Television and Radio Artists, whose labor contracts now dominate prime-time TV pilots.

At the same time, SAG's expenses have risen sharply. Over the last two years, the guild has added 100 people to its staff, partly for organizational outreach activities.

The Writers Guild of America, West,  recently cut 10 % of its staff to close a budget shortfall, which guild officials blamed on investment losses and a sharp falloff in jobs for writers during the last year, when the guild waged a 100-day strike.

-- Richard Verrier

Negotiators for the Screen Actors Guild and the major studios have reached a tentative agreement on a new two-year contract for the union's 120,000 members.

Sources close to the talks say the union's negotiating task force will be briefed today on the proposed agreement, which is expected to be voted on by SAG's 71-member national board on Sunday.

Actors have been working without a contract for nine months as previous attempts at negotiations with the studios collapsed.

The contract contains some minor improvements over previous offers but is largely similar to the one studios presented to SAG nine months ago. That is certain to raise questions about what the union  accomplished by holding out so long to secure a deal after other talent unions secured their own contracts with the studios.

The agreement was hashed out after weeks of back-channel talks involving between SAG interim executive director David White and top media executives, principally Walt Disney Co. CEO Bob Iger and Warner Bros. chairman  Barry Meyer.

Talks were revived after the union's former chief negotiator was ousted by moderates who took control of SAG's board in elections last year.

The breakthrough came earlier this month when the sides reached a compromise over the most contentious issue: the expiration date of a new contract. SAG leaders insisted that their new contract run through June 2011 so that the union could line up its next round of negotiations with the expiring contracts of other Hollywood talent unions. The studios, however, wanted a three-year term, which would push SAG's contract expiration into 2012.

-- Richard Verrier

 

For weeks, the major studios insisted they would never agree to a demand by Hollywood's biggest actors union to have its next contract expire at the same time as those of other talent guilds. 

Now, after back-channel talks between Screen Actors Guild leaders and top entertainment executives, the studios have conceded just that, lifting a stumbling block that broke off negotiations over a new contract in February.

Turns out, however, that the studios' offer comes with a big hitch that may not sit well with hundreds of actors who lost their jobs during the 100-day writers strike. In return for a two-year rather than a three-year contract term, the actors union would agree to settle so-called force majeure claims it filed last year seeking more than $10 million in pay.

After the writers strike ended in February 2008, SAG lodged claims against more than 80 shows on behalf of "series regulars" -- which encompass stars as well as those with a recurring role in a show -- who lost their jobs and wages during the writers walkout. The strike shut down popular series such as "Lost," "CSI" and "Ugly Betty."

SAG maintained that producers violated a force majeure clause in the union's contract that entitled actors to receive roughly 2-1/2 weeks' pay if they were suspended as a result of an "act of God," such as foul weather. The studios, however, balked at paying the claims and accused SAG of overreaching.

Studios want to impose a stricter interpretation of the force majeure clause and have offered to settle the outstanding claims for less than what the actors contend they are owed. How much less is unknown, however.

SAG interim Executive Director David White and Chief Negotiator John McGuire have indicated that they would accept the studios' demand as a necessary concession to preserve the larger goal of aligning the expiration of the actors contract with those of other guilds. They are especially keen to have SAG's contract expire at the same time as that of the smaller actors union, the American Federation of Television and Radio Artists, to gain maximum leverage at the bargaining table.

Expect fireworks from dissidents. The force majeure issue will almost certainly be seized on by White's opponents in the actors guild, who've vowed to campaign to defeat a contract they view as an inferior deal. The actors have been working without a contract for nine months. 

Nonetheless, the new SAG leaders, who were installed after the board fired former Chief Negotiator Doug Allen, retain the support of the board majority. And in the end, most members, weary of working without a contract and anxious about the deepening recession, are expected to support whatever contract their board recommends.

-- Richard Verrier

After weeks of back-channel talks, Hollywood's biggest actor union and the major studios appear to have broken their logjam and could be close to reaching an agreement on a new three-year contract, according to people close to the situation.

The agreement would come as a breakthrough for the Screen Actors Guild, whose members have been working without a contract for nine months as various attempts at negotiations with the studios collapsed amid acrimony and frustration. Talks picked up again after the union's former chief negotiator was ousted by moderates who took control of SAG's board in elections late last year.

Only a month ago, as the economy worsened and more workers in the entertainment industry found themselves without jobs and studios made cutbacks, many in Hollywood despaired the two sides would ever be able to resolve their differences.

Now SAG's interim executive director David White and a group of top entertainment executives are "very close" to resolving most of the remaining sticking points that caused negotiations to break off in February, according to people familiar with the situation who asked not to be identified because they were not authorized to discuss the negotiations.

White has spent the last four weeks meeting privately with several top Hollywood executives, including Walt Disney Co. Chief Executive Bob Iger and News Corp. President Peter Chernin to end the standoff. Iger and Chernin played a pivotal role in helping to craft new contracts last year with Hollywood's directors and writers. They and other studio executives began talking among themselves last month about finding a way to end the impasse after receiving calls from big-name actors including Tom Hanks and George Clooney.

SAG spokeswoman Pamela Greenwalt said it was premature to comment about a breakthrough. "SAG's leadership remains engaged in ongoing efforts to secure a fair deal for SAG members," she said.

Although some points remain at issue, the agreement is said to include a compromise over the most contentious issue: when SAG's new contract would expire.

SAG leaders have insisted that their new contract run through June 2011 so that the union can line up its next round of negotiations with the expiring contracts of other Hollywood talent unions, including the American Federation of Television and Radio Artists and the Writers Guild of America. The studios, however, have insisted on a three-year term, which would push SAG's contract expiration into 2012.

If studios agree to SAG's demand for a shorter contract term, the actors union would likely have to give up something in return.

SAG chief negotiator John McGuire, who just negotiated a new commercials contract for SAG members, is expected to present the outlines of an agreement to the guild's negotiating task force Tuesday, which could set the stage for the return of formal negotiations with the Alliance of Motion Picture and Television Producers, which bargains on behalf of the studios but is dominated by heads of the major media companies.

The union's national board could vote on a final contract when it meets April 18.

White and McGuire are under heavy pressure to deliver a contract to the union's 120,000 members. They were recently installed by a moderate majority on the union's board that accused former leaders of mishandling negotiations and pushing SAG toward the brink of a strike.

-- Richard Verrier

SAG and studios reach tentative deal

Negotiators for the Screen Actors Guild and the major studios have reached a tentative agreement on a new two-year contract for the union's 120,000 members.

Sources close to the talks say the union's negotiating task force will be briefed today on the proposed agreement, which is expected to be voted on by SAG's 71-member national board on Sunday.

Actors have been working without a contract for nine months as previous attempts at negotiations with the studios collapsed.

The contract contains some minor improvements over previous offers but is largely similar to the one studios presented to SAG nine months ago. That is certain to raise questions about what the union  accomplished by holding out so long to secure a deal after other talent unions secured their own contracts with the studios.

The agreement was hashed out after weeks of back-channel talks involving between SAG interim executive director David White and top media executives, principally Walt Disney Co. CEO Bob Iger and Warner Bros. chairman  Barry Meyer.

Talks were revived after the union's former chief negotiator was ousted by moderates who took control of SAG's board in elections last year.

The breakthrough came earlier this month when the sides reached a compromise over the most contentious issue: the expiration date of a new contract. SAG leaders insisted that their new contract run through June 2011 so that the union could line up its next round of negotiations with the expiring contracts of other Hollywood talent unions. The studios, however, wanted a three-year term, which would push SAG's contract expiration into 2012.

-- Richard Verrier

 

For weeks, the major studios insisted they would never agree to a demand by Hollywood's biggest actors union to have its next contract expire at the same time as those of other talent guilds. 

Now, after back-channel talks between Screen Actors Guild leaders and top entertainment executives, the studios have conceded just that, lifting a stumbling block that broke off negotiations over a new contract in February.

Turns out, however, that the studios' offer comes with a big hitch that may not sit well with hundreds of actors who lost their jobs during the 100-day writers strike. In return for a two-year rather than a three-year contract term, the actors union would agree to settle so-called force majeure claims it filed last year seeking more than $10 million in pay.

After the writers strike ended in February 2008, SAG lodged claims against more than 80 shows on behalf of "series regulars" -- which encompass stars as well as those with a recurring role in a show -- who lost their jobs and wages during the writers walkout. The strike shut down popular series such as "Lost," "CSI" and "Ugly Betty."

SAG maintained that producers violated a force majeure clause in the union's contract that entitled actors to receive roughly 2-1/2 weeks' pay if they were suspended as a result of an "act of God," such as foul weather. The studios, however, balked at paying the claims and accused SAG of overreaching.

Studios want to impose a stricter interpretation of the force majeure clause and have offered to settle the outstanding claims for less than what the actors contend they are owed. How much less is unknown, however.

SAG interim Executive Director David White and Chief Negotiator John McGuire have indicated that they would accept the studios' demand as a necessary concession to preserve the larger goal of aligning the expiration of the actors contract with those of other guilds. They are especially keen to have SAG's contract expire at the same time as that of the smaller actors union, the American Federation of Television and Radio Artists, to gain maximum leverage at the bargaining table.

Expect fireworks from dissidents. The force majeure issue will almost certainly be seized on by White's opponents in the actors guild, who've vowed to campaign to defeat a contract they view as an inferior deal. The actors have been working without a contract for nine months. 

Nonetheless, the new SAG leaders, who were installed after the board fired former Chief Negotiator Doug Allen, retain the support of the board majority. And in the end, most members, weary of working without a contract and anxious about the deepening recession, are expected to support whatever contract their board recommends.

-- Richard Verrier

After weeks of back-channel talks, Hollywood's biggest actor union and the major studios appear to have broken their logjam and could be close to reaching an agreement on a new three-year contract, according to people close to the situation.

The agreement would come as a breakthrough for the Screen Actors Guild, whose members have been working without a contract for nine months as various attempts at negotiations with the studios collapsed amid acrimony and frustration. Talks picked up again after the union's former chief negotiator was ousted by moderates who took control of SAG's board in elections late last year.

Only a month ago, as the economy worsened and more workers in the entertainment industry found themselves without jobs and studios made cutbacks, many in Hollywood despaired the two sides would ever be able to resolve their differences.

Now SAG's interim executive director David White and a group of top entertainment executives are "very close" to resolving most of the remaining sticking points that caused negotiations to break off in February, according to people familiar with the situation who asked not to be identified because they were not authorized to discuss the negotiations.

White has spent the last four weeks meeting privately with several top Hollywood executives, including Walt Disney Co. Chief Executive Bob Iger and News Corp. President Peter Chernin to end the standoff. Iger and Chernin played a pivotal role in helping to craft new contracts last year with Hollywood's directors and writers. They and other studio executives began talking among themselves last month about finding a way to end the impasse after receiving calls from big-name actors including Tom Hanks and George Clooney.

SAG spokeswoman Pamela Greenwalt said it was premature to comment about a breakthrough. "SAG's leadership remains engaged in ongoing efforts to secure a fair deal for SAG members," she said.

Although some points remain at issue, the agreement is said to include a compromise over the most contentious issue: when SAG's new contract would expire.

SAG leaders have insisted that their new contract run through June 2011 so that the union can line up its next round of negotiations with the expiring contracts of other Hollywood talent unions, including the American Federation of Television and Radio Artists and the Writers Guild of America. The studios, however, have insisted on a three-year term, which would push SAG's contract expiration into 2012.

If studios agree to SAG's demand for a shorter contract term, the actors union would likely have to give up something in return.

SAG chief negotiator John McGuire, who just negotiated a new commercials contract for SAG members, is expected to present the outlines of an agreement to the guild's negotiating task force Tuesday, which could set the stage for the return of formal negotiations with the Alliance of Motion Picture and Television Producers, which bargains on behalf of the studios but is dominated by heads of the major media companies.

The union's national board could vote on a final contract when it meets April 18.

White and McGuire are under heavy pressure to deliver a contract to the union's 120,000 members. They were recently installed by a moderate majority on the union's board that accused former leaders of mishandling negotiations and pushing SAG toward the brink of a strike.

-- Richard Verrier

Studio concession to SAG comes with a hitch: Less back pay

For weeks, the major studios insisted they would never agree to a demand by Hollywood's biggest actors union to have its next contract expire at the same time as those of other talent guilds. 

Now, after back-channel talks between Screen Actors Guild leaders and top entertainment executives, the studios have conceded just that, lifting a stumbling block that broke off negotiations over a new contract in February.

Turns out, however, that the studios' offer comes with a big hitch that may not sit well with hundreds of actors who lost their jobs during the 100-day writers strike. In return for a two-year rather than a three-year contract term, the actors union would agree to settle so-called force majeure claims it filed last year seeking more than $10 million in pay.

After the writers strike ended in February 2008, SAG lodged claims against more than 80 shows on behalf of "series regulars" -- which encompass stars as well as those with a recurring role in a show -- who lost their jobs and wages during the writers walkout. The strike shut down popular series such as "Lost," "CSI" and "Ugly Betty."

SAG maintained that producers violated a force majeure clause in the union's contract that entitled actors to receive roughly 2-1/2 weeks' pay if they were suspended as a result of an "act of God," such as foul weather. The studios, however, balked at paying the claims and accused SAG of overreaching.

Studios want to impose a stricter interpretation of the force majeure clause and have offered to settle the outstanding claims for less than what the actors contend they are owed. How much less is unknown, however.

SAG interim Executive Director David White and Chief Negotiator John McGuire have indicated that they would accept the studios' demand as a necessary concession to preserve the larger goal of aligning the expiration of the actors contract with those of other guilds. They are especially keen to have SAG's contract expire at the same time as that of the smaller actors union, the American Federation of Television and Radio Artists, to gain maximum leverage at the bargaining table.

Expect fireworks from dissidents. The force majeure issue will almost certainly be seized on by White's opponents in the actors guild, who've vowed to campaign to defeat a contract they view as an inferior deal. The actors have been working without a contract for nine months. 

Nonetheless, the new SAG leaders, who were installed after the board fired former Chief Negotiator Doug Allen, retain the support of the board majority. And in the end, most members, weary of working without a contract and anxious about the deepening recession, are expected to support whatever contract their board recommends.

-- Richard Verrier

After weeks of back-channel talks, Hollywood's biggest actor union and the major studios appear to have broken their logjam and could be close to reaching an agreement on a new three-year contract, according to people close to the situation.

The agreement would come as a breakthrough for the Screen Actors Guild, whose members have been working without a contract for nine months as various attempts at negotiations with the studios collapsed amid acrimony and frustration. Talks picked up again after the union's former chief negotiator was ousted by moderates who took control of SAG's board in elections late last year.

Only a month ago, as the economy worsened and more workers in the entertainment industry found themselves without jobs and studios made cutbacks, many in Hollywood despaired the two sides would ever be able to resolve their differences.

Now SAG's interim executive director David White and a group of top entertainment executives are "very close" to resolving most of the remaining sticking points that caused negotiations to break off in February, according to people familiar with the situation who asked not to be identified because they were not authorized to discuss the negotiations.

White has spent the last four weeks meeting privately with several top Hollywood executives, including Walt Disney Co. Chief Executive Bob Iger and News Corp. President Peter Chernin to end the standoff. Iger and Chernin played a pivotal role in helping to craft new contracts last year with Hollywood's directors and writers. They and other studio executives began talking among themselves last month about finding a way to end the impasse after receiving calls from big-name actors including Tom Hanks and George Clooney.

SAG spokeswoman Pamela Greenwalt said it was premature to comment about a breakthrough. "SAG's leadership remains engaged in ongoing efforts to secure a fair deal for SAG members," she said.

Although some points remain at issue, the agreement is said to include a compromise over the most contentious issue: when SAG's new contract would expire.

SAG leaders have insisted that their new contract run through June 2011 so that the union can line up its next round of negotiations with the expiring contracts of other Hollywood talent unions, including the American Federation of Television and Radio Artists and the Writers Guild of America. The studios, however, have insisted on a three-year term, which would push SAG's contract expiration into 2012.

If studios agree to SAG's demand for a shorter contract term, the actors union would likely have to give up something in return.

SAG chief negotiator John McGuire, who just negotiated a new commercials contract for SAG members, is expected to present the outlines of an agreement to the guild's negotiating task force Tuesday, which could set the stage for the return of formal negotiations with the Alliance of Motion Picture and Television Producers, which bargains on behalf of the studios but is dominated by heads of the major media companies.

The union's national board could vote on a final contract when it meets April 18.

White and McGuire are under heavy pressure to deliver a contract to the union's 120,000 members. They were recently installed by a moderate majority on the union's board that accused former leaders of mishandling negotiations and pushing SAG toward the brink of a strike.

-- Richard Verrier

Actors and studios said to be close to new contract

After weeks of back-channel talks, Hollywood's biggest actor union and the major studios appear to have broken their logjam and could be close to reaching an agreement on a new three-year contract, according to people close to the situation.

The agreement would come as a breakthrough for the Screen Actors Guild, whose members have been working without a contract for nine months as various attempts at negotiations with the studios collapsed amid acrimony and frustration. Talks picked up again after the union's former chief negotiator was ousted by moderates who took control of SAG's board in elections late last year.

Only a month ago, as the economy worsened and more workers in the entertainment industry found themselves without jobs and studios made cutbacks, many in Hollywood despaired the two sides would ever be able to resolve their differences.

Now SAG's interim executive director David White and a group of top entertainment executives are "very close" to resolving most of the remaining sticking points that caused negotiations to break off in February, according to people familiar with the situation who asked not to be identified because they were not authorized to discuss the negotiations.

White has spent the last four weeks meeting privately with several top Hollywood executives, including Walt Disney Co. Chief Executive Bob Iger and News Corp. President Peter Chernin to end the standoff. Iger and Chernin played a pivotal role in helping to craft new contracts last year with Hollywood's directors and writers. They and other studio executives began talking among themselves last month about finding a way to end the impasse after receiving calls from big-name actors including Tom Hanks and George Clooney.

SAG spokeswoman Pamela Greenwalt said it was premature to comment about a breakthrough. "SAG's leadership remains engaged in ongoing efforts to secure a fair deal for SAG members," she said.

Although some points remain at issue, the agreement is said to include a compromise over the most contentious issue: when SAG's new contract would expire.

SAG leaders have insisted that their new contract run through June 2011 so that the union can line up its next round of negotiations with the expiring contracts of other Hollywood talent unions, including the American Federation of Television and Radio Artists and the Writers Guild of America. The studios, however, have insisted on a three-year term, which would push SAG's contract expiration into 2012.

If studios agree to SAG's demand for a shorter contract term, the actors union would likely have to give up something in return.

SAG chief negotiator John McGuire, who just negotiated a new commercials contract for SAG members, is expected to present the outlines of an agreement to the guild's negotiating task force Tuesday, which could set the stage for the return of formal negotiations with the Alliance of Motion Picture and Television Producers, which bargains on behalf of the studios but is dominated by heads of the major media companies.

The union's national board could vote on a final contract when it meets April 18.

White and McGuire are under heavy pressure to deliver a contract to the union's 120,000 members. They were recently installed by a moderate majority on the union's board that accused former leaders of mishandling negotiations and pushing SAG toward the brink of a strike.

-- Richard Verrier