LOS ANGELES, California (CNN) -- The board of the Screen Actors Guild rejected the "last, best and final offer" by producers Saturday night, continuing a months-long deadlock over contract talks.
The two sides have been trying to hammer out a deal to resolve a labor dispute that threatens to shut down production of many movies and television shows.
The guild, considered Hollywood's biggest actors' union, and the Alliance of Motion Picture and Television Producers (AMPTP) appeared close to a deal earlier this week. SAG said it agreed to concede on the amount actors should be paid when their movies or TV shows are distributed on discs or through "new media," such as mobile phones and the Internet.
However, talks stalled Saturday night over another sticking point: The AMPTP insists that a new contract between the two sides start from the time it is ratified and continue for three years.
The guild wants the new contract to take effect, starting from the time the last one expired on June 30.
The distinction is an important one for SAG. A three-year deal would mean that SAG's contract would expire a year after that of the other guilds, such as the writers' and directors' guilds.
It would also prevent SAG from joining the other unions when it came time to renegotiate with AMPTP two years from now.
"What management presented as a compromise is, in fact, an attempt to separate Screen Actors Guild from other industry unions," SAG's board said in a statement after 73 percent of them voted to reject the offer.
"By attempting to extend our contract expiration on year beyond the other entertainment unions, the AMPTP intends to deleverage our bargaining position from this point onward," it said.
The studio alliance issued their own statement after the talks faltered, saying, "We have kept our offer on the table -- and even enhanced it -- despite the historically unprecedented economic crisis that has clobbered our nation and our industry."
"We simply cannot offer SAG a better deal than the rest of the industry achieved under far better economic conditions than those now confronting our industry," the AMPTP said.