UK performers union Equity and producers body PACT are understood to have resolved their dispute over payments to actors.

The terms for the new contract between the two bodies are expected to be a compromise but are thought to include residual payments to actors from ancillary revenues. Equity's main grievance was the fact that UK actors receive only advance fees for their work rather than a share in successful films' revenue streams like members of US union SAG.

The deal, understood to have been agreed at an Equity meeting on Monday (March 11), is expected to offer two alternatives designed for studio and independent films. Equity offered a similar two-tier system when it instructed members to go on strike from December 2001, but allowed producers to strike deals on its terms and continue shooting.

Under those emergency terms, the deal geared at independent productions gave performers a share of up to 3% once a film went into net profit. The second, aimed at US productions coming to the UK, allowed performers a 3% share of certain ancillary revenues.

The strike seemed to have little impact on production levels for UK films, although British Film Commissioner Steve Norris said it made it tougher attracting Hollywood productions to the UK. Inward investment plummeted 57% last year, although some observers put this down to factors such as rising competition overseas and the threat of a strike in the US.

PACT declined comment; Equity was not available for comment at press time.