Hollywood agents get more power

The new deal would change laws dating back to 1939

Hollywood agents have agreed a tentative agreement with the actors union to give them more power in movies and television production.

The deal, which is the first change since 1939, will allow agents to invest in or receive investments for movie productions, as long as they do not become the employers of the actors they represent.

The two sides had been locked in intense discussions for five weeks.

This agreement is a win-win for actors

Tom LaGrua, SAG

The Association of Talent Agents/National Association of Talent Representatives (ATA/NATRA) wanted an increase in the current 10% they are allowed to invest in productions.

They have now agreed a 20% limit with the Screen Actors Guild (SAG).

Principles

Agents argued that the business rules were out of date, however opponents of the scheme said any new deal would result in agents becoming producers.

The current deal, which was brought into place in the year The Wizard of Oz and Gone With the Wind were released, was drafted in to curb conflicts of interest and protect actors from exploitation by talent agents.

Tess Harper from SAG said the new deal covers three important principles.

The current deal was made in the same year as the Wizard of Oz

She said: "First, a guarantee of uncompromised representation; second, assurance that agents will not become employers of the actors they represent; and third, benefits must flow to both sides of the table."

The new deal aims to allow actors to make fully informed decisions about the choice of their agents.

The proposed deal has yet to be ratified by SAG's 96,000 members, however the union's Tom LaGrua believes his members will back it.

He said: "This agreement is a win-win for actors.

"It empowers actors with the essential information needed to choose the kind of franchised agent who works best for them."

In addition, the accord would establish an Actor Benefit Fund for contributions from agents to SAG's health plan.