Urgency is absent in contract stalemate between SAG, studios

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.