DIRECTORS, PRODUCERS MAKE DEAL TENTATIVE PACT MONTHS EARLY.

Byline: Greg Hernandez Staff Writer

The Directors Guild of America on Wednesday reached a tentative agreement with producers on a new three-year contract, a full seven months before its current contract is due to expire.

The swiftness of the DGA agreement, which covers economic and creative-rights terms, contrasts sharply with the near work stoppages by both the Writers Guild of America and the Screen Actors Guild during their protracted labor negotiations this spring.

``We didn't want to put the industry through the threat of another strike and prevent people from working,'' said Gil Cates, chairman of the DGA's negotiating committee. ``We were determined to make it work and I think we did. It is one of the few things that is really positive for both sides.''

Cates said the DGA began laying groundwork two years ago for a new contract with the Alliance of Motion Picture and Television Producers, which represented 265 production companies in the negotiations.

Alliance President Nick Counter praised both sides for the ``progressive problem solving'' that led to the agreement. Informal preliminary talks had begun in June.

``Upon ratification, this agreement will provide certainty and stability so that productions may be scheduled for 2002 without interruption,'' Counter said in a statement.

The most important element of the agreement is a settlement that adapts outmoded agreements to new technologies and will cover all prime-time dramatic programming regardless of whether it is shot on film, traditional videotape or digital video. Movies recorded on film used to be under a separate agreement from movies recorded on tape.

``The blended contract involves both film and tape and that's a great achievement,'' Gates said. ``It sets us up for the the next 30 to 40 years.''

Among other highlights:

--Improved residuals in areas including foreign, free TV and made for basic cable.

--Directors of feature films, for the first time, will receive a bonus payment when a sequel is made based on their film.

--The AMPTP has agreed to hold a meeting within six months to discuss remedies for runaway production with the DGA and other affected guilds.

A primary issue in the area of creative arts discussions centered on the industrywide problem of late television script delivery, which impacts production costs and the ability of television directors to do their work. Both parties agreed on a process to address the situation.

Full details of the agreement will be unveiled Saturday when the proposal is put before the guild's national board for a vote.

DGA President Jack Shea praised the work of the DGA's negotiating committee.

``The main reason I ran for a third term as DGA president was because I knew the important issues that were facing us in these negotiations, particularly in the matter of how new technologies are affecting production in television,'' Shea said. ``I'm pleased we were able to reach agreement with the AMPTP in this crucial area.''