The American Federation of Television and Radio Artists and the major record labels have reached a tentative agreement on a new, three-year sound recording contract, the union said Thursday.

The new contract includes base rate wage increases of 2 percent each year of the contract. It also increases the amount employers contribute to health and retirement funds on royalty income by 1 percent over the life of the agreement, expands performers' participation in revenue from the sale of digital downloads and establishes a new payment structure for new areas of low-budget licenses.

The current contract expires December 31.

AFTRA negotiators and representatives from UMG, Sony, Warner, EMI and Disney began talks August 15. Negotiations became testy: In August, AFTRA's national board gave negotiators authorization to strike.

After Wednesday's all-day meeting, the two sides came to an agreement that AFTRA will now send its members for ratification. If approved, the new contract will run through December 31, 2014.

Sony Sony Sony