Hollywood producers say actors union rejects contract offer; SAG claims bargaining continues

The studios made their final offer last week, saying it provided $250 million in additional compensation over three years. The studios said that they will not make any pay increases retroactive to July 1, if the deal is not ratified by Aug. 15.
Doug Allen, SAG's executive director and chief negotiator, called the $250 million estimate "highly inflated," claiming that proposed raises to actors' minimum wages would not benefit the higher-paid actors.
SAG, the largest and most powerful actors union, represents 120,000 actors in movies, TV and other media. It is seeking greater compensation for DVDs, something neither writers, directors nor a smaller actors union could secure in negotiations.

SAG also wants more say for actors when they are asked to endorse products in scripted shows. SAG officials said they will contact producers on Friday afternoon.
AMPTP said in the statement that the Guild should consider the consequences of not accepting the latest offer. "The last thing we need is a long, hot summer of labour strife that puts even more pressure on a badly struggling economy and deprives audiences of the entertainment they clearly desire in such difficult times," the AMPTP said.
Last Tuesday, the American Federation of Television and Radio Artists, a smaller union with 70,000 members, approved a three-year deal for a handful of prime-time TV shows, including Rules of Engagement and Curb Your Enthusiasm.

SAG, however, represents the vast majority of actors who work in prime-time TV shows and movies. Any work stoppage by its members could throw the industry into turmoil.
The Guild and studios, represented by the Alliance of Motion Picture and Television Producers, have said that they want to avoid a repeat of the 100-day strike by the Writers Guild of America that ended last February. That walkout stalled production on dozens of TV shows and is estimated to have cost the Los Angeles area economy more than $2 billion.

The studios said the possibility of a SAG strike sent some film producers rushing to finish shooting or to delay projects for fear they would be shut down before filming was complete.
But even after the contract expired, on-location movie shoots were on the rise in Los Angeles, according to permitting group FilmL.A. Inc. There were 101 shooting days on location in Los Angeles between July 2 and July 8, up from 97 days a year ago, it said, making the studios' claim that labour uncertainty had caused a de facto strike in Hollywood somewhat dubious.
AFTRA said its three-year deal establishes higher fees for downloaded content and residual payments for ad-supported steams and clips. It also sets a 90-day deadline after ratification to develop rules that would have actors consent to the use of clips in a commercial market similar to iTunes.

The AFTRA deal boosts minimum wages by 3.5 per cent in the first year of the contract, 3 per cent in the second and 3.5 per cent in the third. The increase is slightly higher than the bumps received by directors and writers.
The deal with AFTRA largely followed the script laid out in contracts approved by directors and writers. SAG and AFTRA had agreed to the same starting proposals but took different tacks with the studios, the first time they had negotiated separately for the first time in 27 years.