REUTERS - Members of the largest U.S. actors union overwhelmingly voted to approve a two-year contract with Hollywood studios, ending nearly a year of labor unrest, in results released by the union on Tuesday.

The Screen Actors Guild, which represents about 120,000 performers, was left bitterly divided over the new contract, with hardliners demanding better terms.

But going into the vote count, many members feared a repeat of the 2007/2008 writers strike that cost the Los Angeles area economy as much as $3 billion.

Filmmaking slowed this past year as producers worried about starting productions and then being forced to halt if new labor strife developed. Experts say the newly approved deal should pave the way for some increase in moviemaking even as the industry battles the economic recession.

SAG said 78 percent of members voted to approve the contract with the Alliance of Motion Picture and Television Producers, which represents the Hollywood studios. Going into the vote tally, actors had been expected to give their assent to the labor deal.

SAG's old contract expired on June 30, 2008, but actors continued working under its terms.

The new pact gives actors a 3 percent wage increase this year, 3.5 percent next year and coverage for work done on the Internet.

Moderates said the deal is the best agreement possible in the recession, and that further gains can be achieved in 2011 during the next round of labor talks.

Several Hollywood A-list actors, including Tom Hanks and George Clooney, came out in support of the agreement after SAG in April reached a deal.

But SAG President Alan Rosenberg and his allies among the hardliners said the deal did not give actors enough pay when their work goes on the Internet.

The agreement between SAG actors and the Hollywood studios goes into effect immediately as a result of the vote. The deal only needed a simple majority to pass in the mail-in ballot.