Actors’ Contract Talks Stir Tension

Some tensions have surfaced in the first two weeks of contract talks between studios and actors, but sources close to both sides still believe a strike this summer is highly unlikely.

These sources characterized the negotiations as typical by historical standards, with the parties starting far apart and circling each other cautiously before making any dramatic progress.

It also is expected that both sides won’t start closing the gap until the contract expiration date of June 30 approaches, and that talks are likely to go down to the wire.

Negotiators for the Screen Actors Guild and the American Federation of Television and Radio Artists have met just four times with the industry’s Alliance of Motion Picture and Television Producers. When not meeting at the alliance’s Encino headquarters, the parties have been busy in numerous internal committee meetings, crunching numbers and combing through each other’s proposals.

Despite a self-imposed news blackout, behind-the-scenes spin has already started.

Sources close to studios, for example, say actors surprised them with demands for a package valued much higher than had been expected, especially in the area of residuals paid for reruns. Studios have been hoping to use their recent deal with the Writers Guild of America as a template for a deal with the two acting unions.

Sources close to the unions counter that their requests are reasonable and tailored to their needs, adding that studios are asking for some lower-paid actors to take a financial hit.

One area of contention is a desire by studios to establish a lower rate for actors with three lines or less on a TV show, which actors consider a financial rollback.

Studios argue that the current system encourages studios to eliminate those limited speaking roles to save money, adding that having a lower rate in place would create jobs because there would be an incentive to keep the small acting parts in a script.

But actors argue that studios will be tempted to cut the number of lines actors have in a script to three or less so they won’t have to pay them as much.

Actors are likely to be sensitive to any pay issues affecting lower-paid actors. A major goal this year is to improve the lot of so-called “middle-class actors,” who make $30,000 to $70,000 a year.

Tensions about a possible strike eased considerably after studios reached a tentative deal with the Writers Guild of America. That deal is expected to be ratified by writers in early June.