Warner Bros. says 'The Hobbit' may not shoot in New Zealand after all

So much for peace breaking out in the Shire.

A day after the Screen Actors Guild announced it was ending its do-not-work order on the production of "The Hobbit," seeming to put to rest a labor dispute that had threatened to derail the project, Warner Bros. denounced the unions that boycotted its production and said it is considering alternative locations for filming the two-picture project.

"The actions of these unions have caused us substantial damage and disruption and forced us to consider other filming locations for the first time,'' said Warner Bros., whose New Line Cinema unit is producing the film with Metro-Goldwyn-Mayer. 

Warner Bros. noted that not all of the six international unions that participated in the boycott had rescinded their do-not-work orders. The studio also balked at demands by New Zealand Actors Equity, which has been seeking to secure union wages and benefits on behalf of performers in New Zealand who don't have their own union.

Warner maintains that the New Zealand performers are independent contractors, not union members, and has cited the opinion of the country's attorney general that it would be illegal for the studio participate in contract negotiations.

The statement appears to partially corroborate claims made by the film's director and producer Peter Jackson this week that plans were underway to move the production to another country even if the boycott was lifted because the "damage inflicted on our film industry" is "long since done."

Jackson told New Zealand media that representatives of Warner Bros. would be visiting New Zealand to "make arrangements to move the production offshore." 

A person familiar with the production, however, said Warner Bros. executives had not made a final decision and that the purpose of the trip was to seek assurances from the New Zealand government and Actors Equity that its $500-million investment would not be jeopardized by future labor unrest. Warner Bros. may be hoping that the threat of moving the production could prompt New Zealand officials to offer favorable financial incentives. Production on the first film is set to begin in February.

Concern that New Zealand might lose "The Hobbit" has divided actors  there and on Wednesday sparked protests among some 1,500 film industry workers who staged a rally in the country's capital, Wellington.

-- Richard Verrier

Comments

[YingYang]

Sometimes (mostly) Unions are so focused that they are blind. Since they could not push their demands on Peter, they ALL loose. No sale! Goin elsewhere! See ya! Would it not be better to do whatever it takes to ATTRACT film crews, not make demands? Even us here is CA find these unions refuse to take any pay cuts or layoffs as the world around them crashes. They get their pay while private sector people loose theirs (that is until the government declares bankruptcy) and then EVERYONE looses again. Would it not be helpful to cut back so everyone can move forward? It’ll never happen. VOTE ANTI UNION

[Clarkson]

LOL the union just screwed them out of tons of money from a huge movie set/production. And now backpedaling like mad - too late unions, you lose, again.

[tw]

it's obvious that YingYang and Clarkson aren't union members.....especially in the film industry....As a film industry union member...the union protects it's members form unscrupulous studios, film companies and producers and other such lowlifes....they ensure decent wages, benefits and overtime...when we are not working, we don't get paid and live off our savings till the next job comes around...and we have been, especially here in California, dealing with tax incentives in other states, production is down here, as only the prep takes place and the filming is done elsewhere......all to often we here about workers being taken advantage of and being denied overtime pay for work more than 8 hours....generally it's a non union wage earner that speaks out against unions based on false information, but tell you the truth..if they belonged to a union, they'd be making more money with more benfits...and they'd understand how the unions protect their members....

[Harold]

Once again the Unions get too greedy, and it blows up in their faces. This will have a domino effect on all the other big budget movies that are coming in the future- New Zealand was the affordable stop with beautiful vistas and a capable Movie-workforce after the LOTR movies, but not any more.

Some of the union people interviewed even said their work for Peter Jackson before and that he was fair and provided incentives. This seems to be a case of them just wanting more more more, and now the country pays.

[walter17]

ah, who cares? it's just one big waste of money.

[schlock]

sad that no where in this article does it say "warner bros. is considering moving the production to California. "

[john]

Yeah TW, non union people base their opinions of unions on false information. I guess the recent wonderful union performances in Greece and France is false information.
You need unions so you won't be taken advantage of??? You sound like you need a mother you loser!
You have to save your money until another job comes along....it's called being a contractor! If you don't like the arrangement, get another job or shut the hell up!

Too bad that the usual union BS has screwed a lot of people out of a nice paycheck and a wonderful nation out of a great opportunity.

[inbox1909]

What "damage" did the performers and crew members of NZ cause that will not allow Warner Bros. to film there? This is a scare tactic by WB to secure even more favorable tax incentives from a frightened island.

500 million dollars for two more "Lard of the Ring" movies, and they can't pay the minimum wage being asked by NZ Actors Equity? In an industry where the director and two or three of his stars will make millions, thousands of supporting actors, workers and craftsmen will work 18 hour days to make a few measly dollars. Sounds a lot like Wall Street, doesn't it?

IF they really want to save some money, let them shoot in North Korea. I'm sure they have plenty of people who will work for nothing.

[inbox1909]

All you guys rooting for management are clueless jerks. You don't see them shooting in our home state, why is that? What, not a peep out the tea baggers? It's BS they can't shoot here, they don't because of GREED. Those movies made a billion dollars, how is that a thin profit margin?

Who is the greedy one here, a lowly day player asking for a guaranteed minimum wage, a policy which is observed by actor unions around the world, or the giant WB and NEW LINE corp taking american jobs and shipping them overseas, and then complaining when the natives get uppity? GO NZ, stand up to the bullies, and if they want to shoot where there is slave labor, let them go to the Sudan.