United Artists reaches deal with striking writers

By Steve Gorman and Sue Zeidler

LOS ANGELES (Reuters) - United Artists, the film production house backed by Tom Cruise, broke with parent studio Metro-Goldwyn-Mayer Inc on Monday to reach a deal enabling striking Hollywood writers to work on his company's movies.

UA becomes the first Hollywood movie company to clinch an independent accord with the Writers Guild of America since some 10,500 writers represented by the union went on strike against major film and TV studios on Nov. 5.

Contract negotiations between the WGA and the studios, represented by the Alliance of Motion Picture and Television Producers, broke down Dec. 7, but the union has been pursuing separate talks with smaller, independent production companies.

No details of the UA agreement were disclosed, but the union and the film company called the deal "comprehensive" and said it "addresses the issues important to writers, including new media."

The main sticking point in the strike has been disagreement over how writers should be paid for their work when it is distributed over the Internet and other digital platforms.

The WGA-UA deal marked a symbolic victory for the union in a bitter labor dispute that has thrown the U.S. television industry into disarray, derailed several high-profile film projects and overshadowed Hollywood's annual awards season.

MGM issued a statement saying it "understands the desire of United Artists to resume its business activities but respectfully disagrees with its decision to sign an interim agreement with the WGA."