Union settlement means gains for actors

(CNN) -- The contract between the actors' unions and TV and movie producers should satisfy the unions' primary goal: increasing pay for their entire membership.

Though the two unions -- the Screen Actors Guild (SAG) and the American Federation of Television and Radio Artists (AFTRA) -- refused to quantify their deal, insiders projected that it amounted to a gain of at least $120 million, according to a report in Daily Variety. The agreement boosts minimum pay 3 percent in the first two years and 3.5 percent in the third year.

Union leaders had made much of the fact that only a relative handful -- about 2 percent -- of members earn more than $100,000 a year, while the vast majority earn less than $7,500 a year.

As with industry writers, who reached an agreement in their own negotiations in early May, actors also received hikes in Fox network residuals to full network rates, pension and health coverage for Internet work, additional overseas residuals, and new-technology financial increases.

'Did that work for us?'

The actors' agreement was achieved almost three full days after the unions' contract expired at 12:01 a.m. July 1. But there was little concern from either side that a strike would actually happen.

Part of the reason was two other labor battles: the recent experience of a six-month commercial actors' strike in 2000, and the writers' negotiations, which often appeared dicey.

"The commercial actors strike hurt, but I think it actually strengthened the unions because it showed that a strike was possible," K Callan, an actress and former SAG member, told The Associated Press. "When the Writers Guild settled, it helped the actors by setting up guidelines."

Indeed, SAG negotiator Brian Walton said he repeatedly looked at elements of the writers' settlement and asked, "Did that work for us?"

A strike would have severely damaged the Southern California and New York economies, costing billions of dollars in lost revenue and thousands of lost jobs.

Optimism and touch football

There wasn't to be an early settlement, despite a belief that the WGA agreement would smooth the path for negotiators for both the actors and producers, represented by the Alliance of Motion Picture and Television Producers (AMPTP).

But optimism usually reigned. Even a year ago, before negotiations began in earnest, SAG president William Daniels' stated that "There is a deal to be made."

That statement indicated that SAG was willing to play ball as long as the producers didn't try to take away any gains. SAG also hired Walton, a former Writers Guild West executive, as its lead negotiator.

Variety reports that although the final push toward a settlement was nerve-wracking, the overall atmosphere was relatively calm and even-keeled. Negotiators kidded each other, Walton cracked jokes, people participated in board games, and once the group even played an impromptu game of touch football.

Though Nick Counter, president of the producers' alliance, declined comment on the agreement, actors had no such qualms.

"There's no basis to say anything negative about the deal," SAG member Antony Acker told Variety. "I'm pleased that there was obviously a mutual appreciation by both sides over the seriousness of the situation. And that's clearly important when we're at a time with a real sea change in how the industry operates on a worldwide basis."

The vote on the new agreement is expected later this month.