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The Hollywood studios scheduled most of their productions to wrap up around June 30 in anticipation of drawn-out negotiations, and indeed, talks between the Guild and the industry are ongoing, the Los Angeles Times reported Tuesday. It said only one major studio film, DreamWorks SKG's "Transformers: Revenge of the Fallen", is underway.

"We've had a substantial drop-off", Ed Brown, business agent for Local 44 of the International Alliance of Theatrical Stage Employees, told the Times. His union represents craft workers such as set decorators and special effects technicians. Brown said about 3,500 of the union's 5,500 members were working.

He told the Times that current work levels are off nearly 10 percent from this time last year, saying that the drop-off would have been larger if not for a substantial number of small-budget films whose independent producers have signed contracts with the Screen Actors Guild.

But analysts say producers are ultimately betting there won't be an actors' strike and will ramp up production next month, the Times said.

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