TV, Movie Contract Talks Reach Impasse : Labor: Networks pull out of negotiations with two actors’ unions. Standoff could shut film production when pacts expire June 30.

The nation’s three major television networks have abruptly pulled out of contract talks with Hollywood’s two actors’ unions, creating an impasse that could lead to a crippling shutdown of film production if talks do not resume shortly.

Representatives of CBS, NBC and ABC late Wednesday walked out of the bargaining sessions between the Alliance of Motion Picture and Television Producers and the two unions--the Screen Actors Guild and the American Federation of Television and Radio Artists. The networks, part of the management bargaining team, said the unions were not prepared to adequately address the networks’ economic problems.

“Each day that the negotiations are stalled increases the risk of lost productions and reduced work opportunities for the entire industry,” said Nicholas Counter, president of the Alliance of Motion Picture and Television Producers, the bargaining arm for more than 300 film and TV production companies.

“We’re telling (the studios) to put on hold any projects that cannot be finished by June 30,” said Counter, referring to the date the contract expires. He estimated that at least 15 movies could be affected by a shutdown.

In a joint press release, SAG and AFTRA acknowledged that the talks had broken off because of the networks’ pullout, but declined to respond to the networks’ reasons for quitting the talks. “The unions are still hopeful of reaching an early agreement with the alliance,” they said in a statement.

The boards of both unions were scheduled to meet Thursday in Los Angeles and next Wednesday in New York to discuss procedural questions raised by the networks’ pullout. The unions cannot continue the talks unless the alliance and the networks are at the bargaining table. The Fox network was not part of the walkout because it is part of 20th Century Fox.

The three television networks issued similar press releases on Thursday, leaving the door open for talks to resume, but maintaining that two weeks of talks with union representatives had not addressed their prime concern of high network costs. Two network vice presidents for labor relations--NBC’s Day Krolik III and ABC’s Jeff Ruthizer--returned to New York on Thursday.

Jim Sermons, CBS senior vice president for industrial relations, remained in Los Angeles, but issued a statement that said the networks withdrew from the talks “when it became clear that serious network cost issues could not adequately be addressed in limited early negotiations.”

Among the networks’ demands when talks began Jan. 31 were requests that actors limit first-class air travel (now guaranteed under union contract) and cut their prime-time network residual payments for reruns. The networks contend that they must have concessions to remain profitable.

Though CBS has leapfrogged from third to first place over NBC and ABC in the A.C. Nielsen ratings last year, its costs--particularly an estimated $322 million in expenses associated with purchasing rights to major league baseball, National Football League and other sports telecasts--made 1991 an unprofitable year. Analysts have predicted a loss of $110 million to $125 million for the network.

Similarly, NBC lost between $60 million and $70 million last year. Only ABC of the three networks was expected to show a profit--of $75 million to $100 million--when it releases its annual report.

The two sides had been engaged in nonstop bargaining on a short list of issues. The talks were not scheduled to start until spring but the studios let it be known they would institute a de facto strike by shutting down all production if an agreement wasn’t reach sooner.

One of the key issues at stake in the talks is SAG’s request that it be made the bargaining representative for members of the Screen Extras Guild, whose contract with the alliance has expired.

Counter has said that if extras were paid under terms similar to extras under SAG’s New York contract, it would add $34 million a year to the cost of movie-making.

But Gene Poe, president of the extras guild, disputed the figure and said that studios should look at “above the line” costs such as salaries of producers. “Extras represent only 1% to 1 1/2% of a (film’s) budget,” Poe said. Counter said that because it normally takes three months to shoot a film, studio executives must start deciding now when to launch them.

At Columbia Pictures, for instance, the breakdown in labor talks means three films--”Ground Hog,” a Bill Murray comedy; “Calendar Girl” with Jason Priestly; and “Crossing the Line” with Jean-Claude Van Damme--will have to be hurried into production to meet the June 30 deadline.

Four other Columbia films will have to be rushed into production or delayed indefinitely. Meanwhile, at Walt Disney Studios, a spokesman said Thursday that the studio would wait “a few days” before deciding what to do with the movies it has yet to film.

If the parties don’t return to the bargaining table soon, the spokesman said, “it’s hardball time.”