Hollywood closes in on deal with actors

Both sides in the Hollywood actors' dispute are confident they can settle the long-running issue and avoid a strike. Though talks were adjourned late on Saturday without an agreement, negotiators resumed discussions yesterday morning in a positive mood.

"We want to achieve a contract," said Pamm Fair, a spokeswoman for the American Federation of Television and Radio Artists, one of two actors' unions involved. "We want to keep everyone employed."

The dispute involves 135,000 artists whose contracts expired at midnight on Saturday. They are up against the Alliance of Motion Picture and Television Producers, which represents studios and networks. One of the unions' main demands is for an increase in payments to "journeymen" actors, who earn less than $70,000 (£49,000) a year. Only about 2 per cent of their members earn more than $100,000 a year. Barry Liden, the spokesman for the producers, said: "There is definitely a sense of urgency on all sides."

In total, the new arrangement could provide an extra $3m for actors. The two sides have been in discussions since 15 May, amid concerns over a possible strike ­ a threat made worse by the fact that screenwriters were also in dispute. The writers settled a new contract at the beginning of June.