Union call sparks NZ film industry anger

New Zealand film industry bodies are backing Sir Peter Jackson's crusade against the Australian union calling for industrial action targeting his film adaptation of J.R.R. Tolkien's The Hobbit.

The stoush could see the two-part movie and other big budget projects filmed outside of New Zealand, they warn.

The Media, Entertainment and Arts Alliance (MEAA) said makers of The Hobbit had refused to enter into a union-negotiated agreement and advised members not to accept work on the project because actors may be employed on inferior non-union contracts.

MEAA performers will meet in Auckland tonight to assess the situation.

Sir Peter, who is executive producer of The Hobbit, at the weekend disputed the claims, calling the union an "Australian bully-boy", and saying it had a clear agenda "based on money and power".

He warned that the dispute could lead to The Hobbit films being made in eastern Europe and the makers of other big-budget movies turning their backs on New Zealand

Screen Production and Development Association of New Zealand chief executive Penelope Borland said the action was potentially very damaging to New Zealand's international reputation.

She said the MEAA, a registered Australian union, and its alliance with NZ Actors' Equity had no legal status in New Zealand and could not make lawful demands on The Hobbit.

It was not legal for a production company to enter into collective bargaining with MEAA/Equity or any other labour organisation regarding performers who were independent contractors, she said.

New Zealand did have guidelines for engagement of actors, she said. The Pink Book, to which NZ Actors' Equity is a party, had operated successfully for more than 15 years and specifies standard terms and conditions, she said.

"Common sense must prevail in this matter; otherwise the long term damage to the New Zealand screen production sector and wider economy will be profound."

Film New Zealand chief executive Gisella Carr said The Hobbit films were worth millions to New Zealand's economy.

"Other countries have everything to gain from a dispute in New Zealand. International productions can take their pick of where they film in the world, and everyone wants a picture like The Hobbit. It's a buyer's market."

But the Council of Trade Unions (CTU) president Helen Kelly said Sir Peter was unjustified in describing the union assistance from Australia as "bullying" and that it was good to have international support for workers, including performers.

The film industry needed to address all industry issues, including the problem of non-union contracts which 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, she said.

Ms Kelly said discussions with the New Zealand Actors' Equity indicated there were a variety of lawful means which could be used to establish the minimum wage, working conditions and residuals for performers on the production.