The contract with the Alliance of Motion Picture and Television Producers expired at 12:01 a.m. Tuesday but SAG issued a statement on its Web site, calling for its members to keep working while it reviewed the 43-page offer. In announcing its proposal, AMPTP officials had said a "de facto strike" existed. The two sides are to meet at 2 p.m. Wednesday, SAG said.

SAG said an initial reading of the proposed deal appears it "appears to be generally consistent" with the deal struck with the American Federation of Television and Radio Artists. However, Doug Allen, SAG's national executive director and chief negotiator, said the offer seemed to fail to address some key issues, such as residuals for all made-for-new-media productions.

The union said, however, "Work will continue and all SAG members should report to work and to audition for new work past the expiration date until further notice from the guild."

The producers say their proposal would be worth more than $250 million in additional compensation to SAG members, "with significant economic gains and groundbreaking new media rights for all performers."

The producers said their offer was consistent with the four other entertainment industry labor agreements reached this year. They said the offer also addresses other areas of concern expressed by SAG members.