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American Morning

Hollywood Actors and Producers Reach New Labor Contract Agreement

Aired July 04, 2001 - 09:01   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
DARYN KAGAN, CNN ANCHOR: But first, there's a celebration in Hollywood this morning, actors and producers have managed to avoid a strike. Here's Lauren Hunter.

(BEGIN VIDEOTAPE)

LAUREN HUNTER, CNN CORRESPONDENT (voice-over): There were smiles and handshakes all around Tuesday night as actors and producers reached agreement on a new labor contract.

NICK COUNTER, PRODUCERS NEGOTIATOR: We're very pleased to announce tonight a tentative agreement with the Screen Actors Guild and AFTRA for a three-year agreement.

BILL DANIELS, SCREEN ACTORS GUILD: Both sides focused on problem-solving and finally came up with an agreement that is equitable for both sides. We will take this to our joint boards proudly.

HUNTER: Specific terms of the three-year deal were not immediately disclosed, but one of the key areas under discussion had been increased pay for actors who earn less than $70,000 per year.

SHELBY SCOTT, AFTRA PRESIDENT: Our main goal in these negotiations really to help the middle-income actor, the actor that you all recognize but sometimes don't know their names, but they're the backbone of this industry, and I think we have helped them. I think they will be pleased when they learn the details of this pact.

HUNTER: The agreement is also said to include increases for work appearing on cable TV, the Internet and overseas. Negotiations began in May and were characterized as very difficult because of the complexity of the entertainment industry.

COUNTER: This was really a win-win. Nobody is entirely satisfied on either side with the results, but on the whole, it keeps the town working.

HUNTER (on camera): This settlement ends months of speculation about Hollywood's labor situation. Fatigue from last year's strike against advertisers, along with a weak economy and a new writer's contract, all helped to lessen the likelihood of a strike by actors this year. (voice-over): The proposal will now be sent to the unions' boards of directors and forwarded to their 135,000 members for final approval, a process expected to take several weeks.

Lauren Hunter, CNN, Encino, California.

(END VIDEOTAPE)

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