Lawrence.com

Los Angeles — Negotiators for Hollywood writers announced a "groundbreaking" contract with producers Friday, averting a strike some feared would cripple the TV and movie industry and cost the area economy billions of dollars.

The three-year pact, which must still be approved by a majority of the guild's 11,500 members, represents an improvement of $41 million over the old contract, Writers Guild of America negotiator Michael Mahern said.

"People told us that it couldn't be done even if we stayed on strike for a year or more. Today, we are announcing an agreement with groundbreaking improvement and it has been accomplished without a strike," Mahern said.

The deal was reached three days after the union's contract expired with the Alliance of Motion Picture & Television Producers.

Nick Counter, head of the alliance, said he was happy the two sides were able to come together, but he declined to comment on specific terms pending ratification.

"Hallelujah! My hat goes off to the negotiators," Los Angeles Mayor Richard Riordan said by telephone from Acapulco, Mexico. "They certainly had the welfare of the people of Los Angeles in mind."

Under the agreement, Fox will eventually be characterized as a full-fledged network and pay full fees to writers, rather than a discounted rate reserved for new companies.

Writers will see an increase in foreign TV residuals of about $1.3 million over the term of the contract. Residuals for made-for-cable programs, like HBO's "The Sopranos" and "Sex in the City," will increase from under $300,000 a year to almost $4 million a year.

Both demands were among the most expensive and contentious proposals debated during bargaining sessions.

Steven Bochco, veteran writer-producer of "NYPD Blue" and other series, said he expects WGA members to approve the contract.

"It's not conceivable to me the membership wouldn't ratify," Bochco said. "I'm sure you'll hear grumbling from certain quarters ... but I think the people who make a living writing overwhelmingly will be relieved."

The deal grants writers bonus pay for DVD and home video releases. Internet writers gained new protections under the plan, with health and pension benefits and intellectual property payments if the show is later shown on TV.

Writers scored victories in the area of creative rights, with producers agreeing to guidelines that allow writers to visit sets during filming.

The original writer of a script also must be consulted whenever a new writer is hired for revisions.

The guild agreed to drop its objection to the so-called possessory film credit � often given to directors in the form of "A film by ..."