Warner Bros, New Line & MGM Respond To Unions Over 'The Hobbit,' Threaten To Move Production From New Zealand

This is now officially getting ugly. With things finally getting in place for the troubled "The Hobbit" to start shooting in January, late last week the Screen Actors Guild officially notified their members not to accept any jobs on what they are calling a non-union shoot. Over the weekend Peter Jackson personally responded to the charges pointing out the NZ Actor's Equity who are leading the charge only represent, at best, 10% of the actors on the island but also that plans to try and negotiate minimum guarantees go directly against New Zealand's labor law which "prohibits engaging in collective bargaining with any labour organization representing performers who are independent contractors."

The studios — Warner Bros., New Line Cinema and MGM — have now thrown down the gauntlet, and are echoing the sentiments shown by Jackson. In a statement released to the press, the studios take issue with the production being called "non-union" revealing that they do have collective bargaining agreements in place and underscore that "the fact remains that there cannot be any collective bargaining with MEAA on this New Zealand production, for to do so would expose the production to liability and sanctions under New Zealand law."

And in what may be a final blow to the New Zealand film industry, the studios aren't going to wait around to see who blinks first revealing "it is our general policy to avoid filming in locations where there is potential for work force uncertainty or other forms of instability. As such, we are exploring all alternative options in order to protect our business interests."

And while it may be massively expensive to move the production off the island of New Zealand, where sets are more or less completed and ready to go, it will probably be more costly to begin production only to face numerous work stoppages or disruptions. We're guessing at this point, everyone is willing to spend a few more million to make sure that filming can get underway with no issues once MGM get their house in order.

But no one looks good in this, though in our opinion, the SAG are coming off as bullies so far. It will be interesting to see how this plays out and if the production really does move from Jackson's home base of New Zealand, if that will affect his decision to direct the films. But with everyone planting their flags firmly in the ground, it doesn't look like an issue that will go away quietly. [Variety]