I think we got as good a deal now as we would have gotten had we waited until June 30

Gil Cates DGA

The deal, settled after just two weeks of formal negotiations, marked the earliest agreement in the guild's 65-year history, said Gil Cates, chairman of the DGA's bargaining committee.

The existing labour accord with the Alliance of Motion Picture and Television Producers expires on 30 June, 2002.

Cates acknowledged the quick deal reflected the desire of both sides to avoid the uncertainty of protracted labour talks.

Production work was already knocked off balance by an advertising slump and by studios' push earlier in the year to stockpile film and TV projects ahead of threatened strikes by Hollywood writers and actors.

The strikes did not take place as a settlement was reached.

Tough time

While DGA officials declined to disclose details of the accord before it is submitted for approval on Saturday by the guild's governing board, Cates insisted the union achieved a fair deal.

"It was a tough two weeks but it was very successful,'' he said.

"I think we got as good a deal now as we would have gotten had we waited until June 30."

Key provisions of the agreement include higher residual payments received by film directors as their work moves into secondary markets, such as foreign distribution, commercial television or basic cable.

The union also won a first-time bonus payment for directors whose films spawn a sequel, as well as higher TV residuals for re-runs airing on the Fox network, which would achieve parity with CBS, ABC and NBC by the third year of the contract.

Discard distinction

In addition, the industry agreed to convene a meeting within six months to address "runaway production'', the growing trend of studios moving Hollywood productions to Canada to take advantage of tax breaks and lower labour costs there.

Another highlight was an agreement to discard the long-time contract distinction between TV productions shot on film and those shot on tape, which traditionally have paid less.

The union represents more than 12,000 directors, unit production managers, assistant directors, technical coordinators, stage managers and production associates in film and television.

Labour issues

The actors' unions in August ratified a new contract they said would give performers pay increases totalling at least $123m (�85.1m) over three years. The Writers Guild of America earlier reached a settlement providing pay hikes of $41m (�28.37m) over three years.

Since 1982, the AMPTP has been the main trade association dealing with labour issues in the motion picture and television industry.

It handles 80 industry-wide collective bargaining agreements that cover actors, craftspeople, directors, musicians, technicians and writers - virtually all of the people who work on theatrical motion pictures and television programmes.