Up to 7 Major Global Actor's Unions have instructed their
members not to work for Peter Jackson's The Hobbit
films in New Zealand amid rows over pay. The Unions based in the U.S, U.K, Australia and Canada claim that producers of the two films have refused
to engage performers on union-negotiated agreements, though they do add that
the situation can be resolved. The statement includes that the unions think the
producers intend to make “imminent” offers to performers for the film.
The following was sent
by the unions to their members:
"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, US 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.
Background:
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 the 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 the FA 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.”
Has someone talked to the producers?
Yes. On 17
August the General Secretary and President of FIA wrote the production company
which will produce the film asking that they make contact with the Alliance. A
copy of that letter is available here.
On 20
August the English speaking unions in FIA wrote a joint letter to the producers
of the film advising that they were adhering to the FIA position set out in the
17 August letter. A copy of that letter is
On 31
August the Alliance wrote to the studios behind the film, MGM and New Line. A
copy of that letter is available here.
What have the producers said?
The
producers, through their lawyers, have refused to negotiate with the union. The
producers claim it would be unlawful (and a breach of New Zealand competition
laws) for the producer to enter into an agreement with the union covering the
engagement of performers on the production.
Would it
be illegal for the producer to enter into an agreement with the union?
No.
The
Alliance has obtained legal advice that there are a variety of lawful means
which could be used to establish the minimum wages, working conditions and
residuals for performers on the production. A copy of this advice has been
provided to the lawyers for the producer.
What is the current situation?
SAG,
Equity UK and the Alliance have made contact with their performer members who
are either rumoured to be involved in the film or to whom offers of involvement
have been made. These performers have indicated strong support for the FIA
position. The producers have indicated that, notwithstanding the request to
meet and discuss the terms of engagement of performers on the production, they
intend to make imminent offers to performers. In addition, they have now
advised that they propose to pay some performers “residuals” on the production.
What would these residuals be?
These
residuals are significantly less than the Alliance’s usual agreements in every
respect. The producers have offered 2% of distributors gross receipts to
commence for exploitations 2 years after the first US theatrical release of the
film. However, it is unclear on what they would be based (for example what
about sales which occur before the 2 years relating to use after the two year
period), how these residuals would be divided between the performers and how
they would be enforceable. It is not clear which performers may be offered this
arrangement.
How does this compare to residuals under the Alliance agreement?
The
Alliance agreement for large budget international studio films (such as Mad Max
4 aka Fury Road and Happy Feet 2) provides for residuals that are equivalent to
those under the SAG Agreement. The residuals proposed by the producers of The
Hobbit are less in every respect.
Under all
Alliance agreements all performers are entitled to share in residual payments
and there is no uncertainty about how each performer’s share is calculated or
about enforceability.
What about the conditions?
The
producers have advised they do not intend to negotiate with the union.
Consequently the usual provisions of the New Zealand contract would apply.
These include a provision which permit the producer to terminate the contract
at any time without obligation to pay out the performer’s contract. This
provision could also be used to justify non-payment of any residual obligation
which may have been agreed above (even after the performer has performed all
their work on the film and even if the performer’s work is used in the film).
This
clause alone makes the residual offer above meaningless. Under an Alliance
agreement this would not be the case. MGM and New line has refused to comment.
Where to from here?
In
accordance with the resolution of FIA performers are advised not to work on The
Hobbit unless and until the production enters into an agreement with the
Alliance protecting the wages and working conditions of performers on the
production.
If you are
contacted to work on the production please make immediate contact with your
local union to establish the current position.
All unions
remain hopeful that this situation can be resolved with goodwill on all sides.
Source: ComingSoon.net