BREAKING NEWS: Peter Jackson Slaps Back At Kiwi/Oz/Hollywood Unions
UPDATE: A “Member Alert” went out yesterday afternoon from the Screen Actors Guild advising actors not to accept work on the non-union production of The Hobbit. (See below.) It’s part of an international showbiz labor effort begun by New Zealand Actors’ Equity and its umbrella The Media Entertainment and Arts Alliance headquartered in Australia to go public with a campaign confronting Peter Jackson, the director and producer of the long planned and high profile back-to-back Hobbit movies and filmmakers Three Foot Seven, MGM, and Warner Brothers. NZ Actors’ Equity is calling a meeting of actors on Tuesday to bring The Hobbit filmmakers to the negotiating table for a
contract providing minimum guarantees on wages and working conditions, residual payments, and cancellation payments to actors engaged on the production. Now, the International Federation of Actors (FIA) is supporting the NZ Equity/MEAA campaign, and last month issued letters to The Hobbit production company Three Foot Seven, Warner Brothers, and MGM seeking a union-negotiated contract to cover all performers on the production. That’s why SAG and AFTRA are now involved as well as Actors’ Equity, Equity (UK), and equivalent organisations in Australia, Canada and South Africa.
Equity has been trying since 2006 to negotiate minimum guarantees contracts across the film and television industries in New Zealand, but can’t get that country’s producers organisation SPADA to take part in talks. SPADA says it did agree to a meeting skedded 18 months ago, but nixed an Equity condition that reaching a collective agreement was a requirement for the discussions.
Yesterday afternoon, Three Foot Seven’s lawyers issued this statement: “3 Foot 7 has received legal advice that it is not lawful under New Zealand law for 3 Foot 7 to engage in collective bargaining with MEAA or any other labour organisation, regarding performers who are independent contractors. Under the New Zealand Commerce Act it would be unlawful to engage with an Australian union on these matters.”
What happens next is anybody’s guess. But news reports say Three Foot Seven has been trying to resolve the situation behind closed doors and is pissed it’s now being played out internationally.
The long delayed MGM/Warner Bros/New Line project consisting of 2 back-to-back films produced and directed by Peter Jackson recently got a new lease on life. That’s because the MGM ownership situation is inching closer to resolution with Spyglass chiefs Roger Birnbaum and Gary Barber about to become MGM co-chairmen/CEOs. So currently underway a pre-packaged bankruptcy proceeding that would convert MGM’s debt to equity and remove the $4 billion albatross from around the Lion’s neck so that the studio can start roaring to go on films again. The prepackaged bankruptcy not only allows MGM to be restructured but also freezes existing deals for franchises that include the James Bond series and The Hobbit. All this means that The Hobbit, with Peter Jackson at the helm, is able to move forward, with co-financing partner Warner Bros distributing the two films worldwide. But now this union action is a new wrinkle no one expected:
The makers of feature film The Hobbit – to be shot in New Zealand next year – have refused to engage performers on union-negotiated agreements.
Members of Canadian Actors Equity, U.S. Actors Equity, the Screen Actors Guild, UK Actors Equity, the American Federation of Television and Radio Artists, the Media, Entertainment & Arts Alliance (Australia) and the Alliance of Canadian Cinema, Television and Radio Artists are advised not to accept work on this non-union production.
If you are contacted to be engaged on The Hobbit please notify your union immediately.
For more information about this non-union production click here.
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The Hobbit and Engagement of PerformersBackground
For some years performers in New Zealand have struggled on non-union contracts. These contracts provide no minimum guarantees of wages or working conditions, no residual payments and no cancellation payments in the event the performer’s contract is cancelled.In 2006, at the request of New Zealand performers, the Australian union, the Media Entertainment & Arts Alliance (Alliance) opened an office in New Zealand.
Since that time the New Zealand branch of the Alliance has sought to negotiate with both individual producers and with the producers’ association but to no avail.
The International Federation of Actors (FIA), of which the vast majority of performer unions around the world are members, resolved that the time had come for performers around the world to support their colleagues in New Zealand and seek a union contract for all performers on The Hobbit.
Who is FIA?
FIA represents performer unions in 100 countries around the world. Unions represented include the Screen Actors Guild (SAG), the American Federation of Television and Radio Artists (AFTRA), American Actors Equity, the Alliance of Canadian Cinema, Television and Radio Artists (ACTRA), Canadian Actors Equity, Equity UK and the Media Entertainment & Arts Alliance.FIA’s goal is to advance the interests of performers around the world.
What did FIA decide?
At a recent meeting FIA decided that the situation had persisted long enough and that it was time for action to be taken.Consequently, FIA resolved as follows:
“Resolved, that the International Federation of Actors urges each of its affiliates to adopt instructions to their members that no member of any FIA affiliate will agree to act in the theatrical film The Hobbit until such time as the producer has entered into a collective bargaining agreement with the Media Entertainment and Arts Alliance for production in New Zealand providing for satisfactory terms and conditions for all performers employed on the productions.”
Editor-in-Chief Nikki Finke - tip her here.







Yes, SAG cares. Deeply. When there are huge dollars involved. Not so much when it deals with a dubbing agreement for foreign product. $128.00 minimum two hour pay with no residuals. That’s it. And only if they return phone calls to prospective clients. Good luck on that whole insurance eligibility thing for a lot of anime voice actors in town. And no hurry renegotiating. This contract has only been in place for thirteen years.
As I have previously said Nz laws are different so don’t think peter is being petty by not paying them there money due.. I am a kiwi so I know what I am talking about, as for Peter suing Newline perviously it was written in his contract about money due. Have any of you bothered to read peters reply?
IMHO – Actors in New Zealand (Aotearoa) are generally similar to subsistence farmers, they are paid very little, and rely upon very few projects to survive. Peter has a local reputation of not helping anyone but his little circle, and it’s an afront for him to have bought a new private jet, with so little trickle down. He might be showing his true colours taking the project to Eastern Europe, obviously it’s not Kiwi’s that he is wanting to help. So… what does kiwi talent do? rely on another film which will greatly benefit the producers, but have very little upside for the extra’s bit parts etc etc Thank you so much Sir Ian McKellen, Cate Blanchett and Hugo Weaving actors like you are standing up for the little guy!
So, how about the thousands of Kiwi actors who aren’t “non-union”, they just don’t belong to AFTRA affiliates? Might do well for some folks to remember that the world doesn’t revolve around Hollyweird or Sydney.
BTW, Peter Jackson is quite right. We have employment law in New Zealand, and under the Employment Relations Act (which was heavily supported by KIWI TRADE UNIONS) only a registered union can enter into a collective contract — the MEAA is not.
Now, if SAG and it’s affiliates are trying to argue that they can just ignore New Zealand labour laws, then I invite you all to guess which finger I’ve got extended right now. It’s certainly a peculiar position for a union to take.
The MEAA may not be a registered union in NZ, but NZ Actor’s Equity is, and NZ Actor’s Equity is auspiced and financially administered under the MEAA.
Therefore, MEAA has every right to consult with NZ Actor’s Equity. And that’s what’s happening. NZ Actor’s Equity is doing all the action and MEAA is the voice.
AND FYI: All internationally financed productions have to have clearance from the registered union body, to ensure they meet the Overseas production requirements, which includes minimum pay requirements. Because NZ Actor’s Equity has bugger-all fulltime staff, the MEAA administers on their behalf
There’s an easy solution to this. SAG can come to New Zealand, and set itself up legally as a trade union in accordance with the Employment Relations Act (which, FWIW, became law under a left-leaning goverbment was was heavily supported by local trades unions) and then have legal status to negotiate collective contracts in New Zealand.
Otherwise, I don’t see why American trade guilds should be exempt from New Zealand industrial relations law. It stinks of ugly American Coca colonialism…
Kiaora Craig… that’s ridiculus; you must be trying for an upcoming job. Forget it, this never going to happen, and Sir Pete has left you in the ditch already. Our unions here are so weak, the only hope for better conditions is for the unions to globalize. A well paid industry is good for the little guy, and the industry as a whole, or would you prefer sweat shop labour? Sir… you can see who he’s batting for, Tories!
NZ actors, of which i am one, voted to invite MEAA to New Zealand to oversee a NZ branch of Actors Equity. We have been trying for for the last 2-3 years to get a standard contract recognised in the industry. For those of us who worked on Lord of the Rings, it was utterly humiliating to stand next to American and Australian actors on standard contracts with residual agreements whilst we were paid a single one off day rate. The Hobbit is the best opportunity we have had to stand up and get NZ performers the same basic rights as Aussies and American actors coming to NZ to work on a film partly funded by New Zealand taxpayer money. This isn’t a bully-boy Union move, this is New Zealand actors demanding their union take action on our behalf. I am proud that FIA, SAG, AFTRA have come on board to support us, and I hardly think paying New Zealand actors the same as everyone else is going to bring down The Hobbit. The media are working hard to have you believe so.
You are right of course and I too am so proud as a member of all three US performers unions to know that we have stood with you in your demands. It is an historic moment…one we all should thank our current union leaders for supporting.
Right on Gareth, you hit the nail on the head matey.
Thank you for giving this first-person perspective. Would anyone in any job not be resentful if they were doing the same job as those right next to him, but not getting the same protection and compensation? It’s just not right.
In the USA at least, as most AEActors probably know, there is a bargaining tool which can be used by lesser-known Actors who do not have much clout to negotiate, for themselves, a better, above-minimum, AEA contract. It is called: Favored Nations.
If an Actor or his or her representative is a smart businessperson, s/he will invoke: Favore Nations.
Favored Nations assures that an Actor does not have to ‘settle for less’ (a lower salary) than fellow cast members receive. A smart businessperson can achieve the SAME, high-paid, salary as was set by a better-paid cast member (for doing the same work).
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On Union Security:
Union Security applies to all Screen Actors Guild’s producer signatories.
Union Security is a negotiated contract protection for SAG members.
Should a SAG signatory producer/director or a studio such as MGM, Warner Bros, et al. (Signatories to SAG’s Collective Bargaining Agreeement as well as its TV/Theatrical and Commercial contracts) choose to hire NON-SAG Actors, according to SAG’s contracts, the producer has agreed to pay a, negotiated, fine amount of $536 (?) to SAG, per violation for violating the contract.
Of course producers can always hire whomever they choose to hire. However, if/whenever they do they must pay Union Security to SAG.
Consequently, “The Hobbit,” as others have already stated, clearly, will test the resolve of SAG’s newly elected leadership; as it is a ‘trial by fire’.
Pray that SAG will survive.
However, we can only hope that seasoned unionists, in the know, are wrong, but, if they are proven correct, SAG is DEAD.
Sadly and unknowingly, SAG’s complacement membership may have been lulled into a false sense of security (pun intended). By accepting anti-SAG hype as truth, SAG members have become complicit in their own demise. SAG cannot be redundent unless its members are redundant.
Obiously, SAG mmembers have been ‘bamboozled’ into electing an inexperienced leadership who seem much too weak, much too naive, and/or who may even be much too ‘nice’ to withstand the rich and the powerful, ANTI-union, terrorist, attacks of known union-busters like Peter Jackson, et al.
Gareth could you supply some dollar figures so I can do the math with exchange rates and compare the differences in pay as well as working conditions. Are the movies being made in NZ because of merit or is it because it cheap? like making a movie in a third world country? Or can you direct me somewhere to look up these rates myself thanks
@Kiwibird: I actually want SAG to know WTF they’re talking about when it comes to New Zealand’s industrial relations law — which, as I observed, was passed by a left-leaning/liberal Labour Government with the support of New Zealand unions. But I guess Kiwi workers come second best when it comes to union power-games in Sydney and La-La-Land.
Jackson had to be dragged back to direct the prequel for a studio being held together by duct tape, and now people are starting this crap.
People in New Zealand need to take a look over here, at the drop in production and all the people out of work, before they start complaining about the wages for work they’re lucky to get. When FELLOWSHIP came out, the kids over there were given the day off of school to see it and they actually started calling their country “Middle Earth”. Who are they kidding, acting like they’re willing to risk Jackson packing up for Bulgaria or wherever?
I live in New Zealand. ‘Fellowship’ brought tourist dollars to our economy, and well-paid work to our actors..
Then we elected a National government (similar to Republicans) who favor big business (National raised taxes on goods sold and cut taxes for the wealthiest New Zealanders) and is now giving tax breaks to Warner Bros and supporting the union busting that is going on. What is sad is people here don’t get the trajectory this country is following. Have you noticed that America is in a race to the bottom of the barrel in wages and benefits for it’s citizens? We should not emulate that here.
The fact is it’s an Australian union who is kicking up a storm. Most New Zealand actors don’t belong to any unions and they like it that way. It makes New Zealand a far more desirable location to make films then other parts of the world, meaning that actors get work when they otherwise wouldn’t. All of the non-New Zealand unions that are “up in arms” over they poor New Zealand actors are only doing out of self interest. Over the years they have got too greedy with their demands and are now loosing jobs because of it.
you too have been conned– lets blame the Aussies and or the union
SAG/AFTRA adding their 2cents of uncirculative currency to the fighting ring. The production involves more than the actor’s it involves the set artists, the builders, the filming crew… the general public with support crews…. There apparent care for the actor’s is just unusual to me, how do they (the guilds) benefit from this and are they concerned for the greater industry?
I love it when the money players come to play…. luckily – as some would see it – we don’t all want to play their game.
I hope that the film goes ahead and I believe Peter Jackson does care about his production crew as a whole. Again, as his representative Matthew Dravitzki it is an unproductive vendetta perhaps when not all films have the financial backing…. we all want good pay rates but we also want to be able to be involved in artistic endeavours…. let the man fight for himself… the man being the everyday man negotiating his contract…. I sound like a nationalist saying everyone has to fight to earn their dollar… I still think that the individual needs to be represented but… I digress….. the point is this seems like I personal attack on the strongest company and like Mr Dravitzki said “The equity want to meet with Peter and Peter is one producer in a country of many producers and anything we agree to do in that meeting, would have an effect on everyone else working in this industry. And not everyone is working on a multi-million dollar production.” …. let it go! and let production go on!
This is about union busting, plain and simple. The same as Ronald Reagan did to PATCO, (the air traffic controllers union in the US), the same as Margaret Thatcher did to the coal miners in the UK. Neither country was improved by having it’s unions broken and the salaries and benefits of it’s workers drop. Now New Zealand is following in their tracks, plus giving a 13 million dollar tax break to a huge corporation. New Zealand could use that money for it’s enlightened social programs more than Warner Bros.
SAG doesn’t care about actors. They never have. That is why the majority of actors who belong to SAG stay unemployed.