Omnicom withdraws controversial measures following objections from the production community.

shots can reveal that Omnicom has retracted changes to the working contract between its UK agencies and the production companies it engages.

The changes would have meant that production companies would be paid for their services if and when the client paid the agencies, rather than any money up front or on completion of work.

In a joint statement released on Thursday, Omnicom and the APA said: "The APA and Omnicom agencies have made material progress in recent discussions, to the satisfaction of all parties. Discussions will continue over the coming weeks and months about ways in which the two organizations can work more closely together to assist clients in difficult times."

Throughout the past week, the APA and the Institute of Practitioners in Advertising had been in talks with the Omnicom agencies. Production companies that were members of the APA agreed that they could not work under the new conditions and wrote letters to the agencies explaining their positions.

The APA issued the following statement to its members:

"Omnicom have suspended their instruction to their UK agencies, AMVBBDO, TBWA and DDB regarding the wording of payment clauses. Thus, contracts you receive from them will be as per the standard ISBA/IPA/APA contract."