Tentative Accord Reached Between Actors and Studios : Labor: Proposed contract averts a threatened movie production shutdown. Screen Actors Guild will represent extras for the first time since 1946.

The threat of a crippling production shutdown at Hollywood’s movie studios was averted Sunday when negotiators reached a tentative agreement on a new three-year contract covering actors and extras.

Although terms were not disclosed, the agreement means that the Screen Actors Guild will become the bargaining agent for union extras on the West Coast for the first time since 1946, when the extras broke away and formed their own union.

Bringing the extras under SAG’s contract had been a key stumbling block in the talks, but one that was resolved to the satisfaction of both sides. On the East Coast, SAG already represents screen extras.

The Alliance of Motion Picture and Television Producers, the collective bargaining arm for more than 300 film and television 300 production companies, had argued that production costs would soar $34 million a year if extras were paid the same wages that prevail under SAG’s New York contract. The union disputed the figure.

The early accord also means that studio executives will not carry through on their vow to halt production this spring on any film for which shooting could not be completed by June 30, when the current contract expires.

Already, about 20 films have been placed on hold.

“Now those pictures, of course, will be given the green light,” said a source close to the talks. “What this did is avoid a work stoppage.”

Union negotiators will present the terms of the proposed contract to their joint boards on March 2 in Hollywood and March 4 in New York. If approved, the boards will authorize a ratification vote by the unions’ 120,000 members before June 30.

Sunday’s tentative agreement was the result of accelerated negotiations that began Jan. 31. On one side of the talks were representatives of CBS, ABC, NBC and the alliance; on the other side were SAG and the American Federation of Television and Radio Artists.

Talks broke off Feb. 12, however, when the networks’ representatives abruptly left, saying the unions were not prepared to address the networks’ economic problems.

The pullout was so unexpected that it left management’s side without a united front at the talks.

The network pullout “surprised the hell out of” the alliance, a source said. “They (the networks) genuinely felt they need relief and they still do. Their audiences have shrunk and their ratings are down.”

The alliance decided to go ahead without the networks and resumed talking to the unions Friday. The networks are expected to resume bargaining in New York next month.

Sources said the networks were concerned about the payment of residuals. The networks now pay a licensing fee to producers for the first two airings of a program.

“As far as the networks are concerned, they want to get relief on the second run of a network show,” one source said. “Now, they show a picture once and when they run it again, they pay the salaries all over again for the second run. The networks have stated that the lesser audience and therefore reduced advertising fees they receive have put an unusual economic hardship on them. They are looking for relief in that area.”

Times staff writer Alan Citron contributed to this story.