Actors' Strike Averted

In a 53 percent to 46 percent vote of approval, SAG directors struck a deal with the Alliance of Motion Picture and Television Producers (AMPTP), according to BBC News.

The agreement set up guidelines for a three percent annual pay increase, better overtime pay and a share of profits from new media sales. It alleviates the threat of strike that has been haunting Hollywood since the last contract with SAG ran out in June 2008.

The union had objected to plans to make one-off payments to actors in made-for-Internet shows instead of residual payments.The deal must still be ratified by union members in the US. Ballots are to be in by the end of May.

The contract is for three years, and will begin when signed by the 120,000 union members. SAG had wanted the contract to begin when the last one expired, in which case it would have then expired close to when those of writers' and directors' guilds did. This would have increased the union's bargaining power in 2011.

Both SAG and AMPTP were happy with the progress the deal marked in negotiations.

"With this agreement in place, our entire industry can work together to overcome the enormous economic challenges before us," said a statement from studio owners.