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Tensions between Hollywood’s writers and the major studios and networks had reached their highest levels in years, setting the stage for a possible walkout that could severely disrupt the film and TV industry. Members of the Writers Guild of America voted overwhelmingly April 24 to give their leaders authority to call a strike after their contract expired May 1.

By the early hours of May 2, however, the sides had reached an agreement on a new contract to avert a strike. The contract provides increases to the union’s health plan and improves pay for writers working on short-order TV series -- two chief areas of concern for the guild.