ICG Publicists Corner

Writers Guild is Close to a Deal with UA

United Artists, the independent production unit of MGM controlled by actor Tom Cruise and his producer partner, Paula Wagner, is expected to become the first movie company to reach an interim agreement with the Writers Guild of America, enabling the recent start-up to hire union writers despite the continuing strike.

The guild, which is close to finalizing a deal with UA that is expected to be signed possibly as early as today, is also in discussions with several other independent companies, including Lionsgate and the Weinstein Co., about similar interim agreements.

The agreement with UA would benefit the company's distributor and majority shareholder, Metro-Goldwyn-Mayer Inc., by supplying the studio with films once they were produced.

UA, based at MGM's headquarters in Century City, is a relatively small player in Hollywood, and a deal with the company is not expected to have an immediate effect on the larger dispute that has roiled the film and TV industry.

The pending agreement with UA is patterned after a similar deal the guild has struck with Worldwide Pants Inc., the production company owned by late-night talk show host David Letterman.

Both agreements contain proposals that the union sought in its negotiations with major studios, including in the key area of Internet residuals.

01/07

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