The longest and most acrimonious strike in entertainment business history ended yesterday. Actors in the United States, who had been refusing to take part in commercials for nearly six months, have agreed terms with advertisers that could mean a return to work within the next few days.
The strike has been costing actors an estimated $1m a day in lost wages. It led to a flight of production to Canada, Australia and Europe and is seen as a dress rehearsal for what is likely to be an even more bitter dispute involving both actors and writers next year which could shut down the whole film and television industry in the US.
The dispute was over how actors should be paid for their work in the growing cable and internet industry. Advertisers had wanted to pay actors a flat fee for all work while actors held out for "residuals", repeat payments made every time a commercial is shown.
Following negotiations which started last week in New York, a tentative agreement has been reached which will give actors an agreed separate fee for cable television commercials. Advertisers have also accepted that they will only use union actors for commercials on the internet. The new contract, if it is ratified by the membership this week, will last for three years.
Union negotiators estimate that actors' fees will be increased by around 10% as a result of the deal. Under the new agreement, a flat fee of $2,460 will be paid to actors who appear in commercials that are used on cable television in addition to network television.
The Screen Actors' Guild (Sag) and the American Federation of Television and Radio Artists (Aftra) called the strike on May 1 after failing to reach an agreement with advertisers represented by the American Association of Advertising Agencies and the Association of National Advertisers.
As the strike dragged on, the actors organised boycotts of advertisers who made commercials using non-union films. The latest boycott, aimed at Proctor and Gamble, asked people not to buy Crest, Tide and Ivory soap and led to the involvement in the negotiations of P&G management.
There had been growing tension within the unions over the last few weeks with the LA strikers seen as more militant and the New York end more anxious to seek a compromise.
The strike hit the headlines when well-known actors became involved, either wittingly or unwittingly. Last week, Liz Hurley apologised for making an Estee Lauder commercial during the strike and made a $25,000 donation to the hardship fund. She said she had been unaware that the commercial was in breach of the strike but actors picketed the premiere of her film Bedazzled in Los Angeles last week.
Paul Newman, Julia Roberts and Tom Hanks all offered public support to the strikers at rallies and Nicolas Cage, Kevin Spacey, Helen Hunt and John Travolta made large donations.
What could be a much more divisive strike, involving both actors and writers, is predicted for next year. Both Sag and the Writers' Guild of America are due to renegotiate their contracts next summer and are likely to reach the same sticking-point over cable and the internet. As a result, many studios are hurrying through production in an effort to complete projects before the strike begins. The Writers' Guild has written to members telling them to start saving in preparation for a shutdown.
