"Despite his status as a television producer, Reagan remained on SAG's board in another violation of the guild's bylaws, which prohibited producers from holding office in SAG. In 1959, when Reagan ran for an unprecedented sixth term as SAG's president, his opponents raised the bylaws issue. Publicly, Reagan denied that he had ever produced The General Electric Theater--a flat-out lie.
Wasserman had encouraged Reagan to run again. MCA was facing sensitive negotiations with SAG over residual motion picture rights for actors. The issue eventually forced SAG to strike in 1960, and Reagan became the actors' chief negotiator. Labor attorney Sidney Korshak aided Reagan and the studios in the final settlement. Years later, The New York Times characterized Korshak as the link between the legitimate business world and organized crime.
The contract that Reagan and company arranged with the studios is still known in Hollywood as "The Great Giveaway"; it provided residuals for actors only from films made after 1960. This greatly benefited MCA, which had purchased the film library of Paramount Pictures in 1959. Now, MCA could keep all the profits.
In 1962, the Justice Department filed a federal antitrust suit against MCA on the basis that it was both a talent agency and a production company; SAG was charged as a coconspirator."