Urgency is missing in SAG pact talks

Hollywood’s long, hot summer does not appear to be ending any time soon.

The talks between the major studios and the largest actors union are at a stalemate. And neither side professes to be in a hurry to break the logjam.

A meeting last week failed to bridge the significant gaps between the parties and yielded only further sniping between the warring sides.

The Screen Actors Guild said it rejected the studios’ proposed contract because it doesn’t adequately protect the financial needs of actors, especially in the area of new media. Studios countered that their offer was good enough for three other talent unions -- and was even generous amid the current economic uncertainty.

So why the lack of a sense of urgency?

The studios do not feel pressured to cut a deal because they spent months fast-tracking much of their movie production so that they wouldn’t be caught short if the actors walked out. Moreover, they believe that the union’s leaders don’t have the leverage among their members to obtain a strike authorization vote.

Union leaders, on the other hand, believe that this is a historic moment with technology transforming the way entertainment is delivered, and that now is the time to hold firm on their claim. They also believe that enough actors aren’t happy with the studios’ proposal, giving them hope that they still have enough clout to wring concessions in a new contract.

Not that both sides don’t have options. The studios could declare an impasse, a legal maneuver that would allow them to enforce the terms of their proposed contract. They could even declare a lockout, which would trigger a self-inflicted shutdown of production.

But such dire actions aren’t in the immediate cards. Sources close to the studios, who asked not to be identified because they were not authorized to speak, say senior executives are reluctant to take any action that could galvanize SAG’s members and create sympathy for their leaders.

The longer SAG goes without a contract, studio executives believe, the more actors will protest that they are not benefiting from pay raises -- modest though they may be -- granted their peers. (As an added incentive, the studios have stipulated that actors’ raises won’t be retroactive to July 1 if the contract is not ratified by Aug. 15.)

In addition, each month the studios continue to operate under the current contract, they save money. The studios say their “final” offer contains more than $250 million in gains for actors over their current agreement.

Evidence of the studios’ preparedness was underlined last week when Film L.A., which coordinates permits for location shooting, reported that feature production jumped 9% during the second quarter as studios rushed to complete most projects by June 30.

The production effect has been further mitigated by hundreds of waivers that SAG has granted that would allow independent films to keep the cameras rolling in the event of a strike. That prospect is viewed as unlikely by many in the industry, in contrast to widespread panic that accompanied the run-up to the writers strike last fall.

Unlike their counterparts at the Writers Guild of America, SAG leaders have so far not opted to seek a strike authorization vote from members. The reason: They know it would be difficult to muster the votes. Strike authorization requires approval by 75% of the members who vote, a high bar given strike fatigue in Hollywood and the downturn in the economy.

That perception was reinforced when SAG failed to defeat a contract negotiated by the smaller actors union, the American Federation of Television and Radio Artists, despite an expensive campaign to torpedo the deal.

Confronted with few options, SAG leaders have contemplated putting the studios’ offer to a membership vote -- either without an endorsement or with a recommendation that it be rejected.

If that happens, guild insiders say, SAG probably would mount another campaign leading up to the vote, similar to the one it pursued against the AFTRA contract, highlighting the shortcomings of the studios’ offer. The threshold is lower to defeat a contract because only a simple majority is required.

SAG’s national 71-member board will decide its course when it meets Saturday.

Guild President Alan Rosenberg said that the union’s negotiating committee was “united behind the idea that this contract is unacceptable,” and that it held out hope that bargaining with the studios would continue.

If the stalemate lasts, Rosenberg said, “we’ll have to take the temperature and see where our members go from here.”

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richard.verrier@latimes.com