Analysis: How the Guilds Lost the 'Hobbit' War
As more and more U.S. productions are made in other countries, Hollywood studios are determined to limit guild influence as much as possible
Will entertainment workers of the world unite? Probably not any time soon.
They just tried, and it blew up in their faces.
The two-month Hobbit affair in New Zealand began with local actors attempting to organize the film and ended with a smackdown from U.S.-based Warner Bros., which extracted an additional $25 million in incentives from the island nation and secured passage of antiunion legislation, apparently negotiated directly between the government and key Warners executives including New Line president Toby Emmerich and Warners Home Entertainment president Kevin Tsujihara.
As labor leaders (including SAG, which boycotted in solidarity) withdrew under a barrage of negative publicity and even death threats, they were left to wonder: what went wrong?
Just about everything:
• The local union, New Zealand Actors Equity (NZAE), never made clear to the public why it was trying to organize the production. Were working conditions the issue? Pay rates? Residuals? There was never a detailed or consistent answer.
• Early on, a key legal issue arose: Could actors be engaged as employees rather than independent contractors? The union never developed a clear response to this question, instead focusing on odd stopgaps for protecting actors engaged as independent contractors.
• NZAE failed to develop significant support from local actors. A planned meeting -- canceled due to a counter-demonstration -- was expected to draw only about 90 attendees. Meanwhile, meetings and rallies of industry workers, including actors, who opposed the union¹s actions attracted thousands.