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Actors' Union, Studio Agree To Contract

Hollywood's actors' unions and the major studios reached an early agreement on a new film and TV contract, capping nearly six weeks of talks aimed at averting a protracted labor dispute. As expected, the the deal announced Sunday morning between the Screen Actors Guild, the American Federation of Television and Radio Artists and the Alliance of Motion Picture & Television Producers provided some modest pay raises and a significant increase in contributions to the unions' health and pension plans, a top priority for the unions.

The tentative three-year contract takes effect July 1, 2011, and must still be approved by the joint board of the two unions and a majority of members of both unions before it is ratified. SAG represents 125,000 members, while AFTRA has 70,000 members. Both sides wanted to avoid the problems two years ago, when actors worked without a contract.

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