21 October 2010

SPADA's Fact Sheet On The Current Industrial Situation

Due to the recent industrial unrest, THE HOBBIT's future in New Zealand is very precarious, and has resulted in considerable damage to New Zealand's international reputation as a shooting and production location. There is currently a lot of misinformation circulating. It is important that people are aware of the facts as follows:

1. On 17 August 2010, without a mandate from the members of NZ Actors' Equity, the International Federation of Actors (FIA), following lobbying by the Media Entertainment and Arts Alliance (MEAA), issued an international 'boycott' on THE HOBBIT.

2. 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."

3. On 20 August 2010 the English speaking unions in FIA confirmed their commitment and adherence to the resolution of FIA.

4. On 28 September 2010 NZ Actors' Equity held a meeting in Auckland and passed the following resolution:

"Recommends that all performers wait before accepting any engagement on the production of The Hobbit until the production has advised whether it will enter into good faith negotiations with NZ Actors' Equity with respect to the minimum conditions of engagement under which NZ Actors' Equity will recommend performers work on the production The Hobbit, including minimum fees, conditions of engagement, professional protections and residuals. If the productions advises it will not enter into such good faith negotiations then NZ Actors' Equity should make a further recommendation to performers on what action should be taken at that time before performers accept engagement of the production".

5. On 29 September 2010, and on the advice of a Crown Law opinion, the Attorney General confirmed that THE HOBBIT's producers were prevented by the Commerce Act from entering into a union negotiated agreement with performers who are independent contractors.

6. On 02 October 2010 the President of NZ Actors' Equity stated on national television that:

"The Commerce Act says you cannot collectively bargain, absolutely, and we've never asked for that."

and also in correspondence with Sir Peter Jackson it was acknowledged that it would be illegal to enter into a collective agreement.

7. Yet the 'boycott', which was predicated on entering into a 'collective agreement', did not begin to be formally lifted until Wednesday 20 October when the Screen Actors Guild (SAG) issued the following statement:

"Today, our sister union New Zealand Actors Equity issued a statement recommending all international performer unions rescind their member advisories on the feature film production The Hobbit. In light of this recommendation, Screen Actors Guild will be alerting its members that they are now free to accept engagements, under Screen Actors Guild contract terms and conditions, on The Hobbit."

following a recommendation from NZ Actor's Equity to lift the 'boycott' on THE HOBBIT, which SPADA understands was made over the weekend.

As a result of the above actions, THE HOBBIT's future in New Zealand is at risk. To suggest that the film may move purely because of superior tax incentives or subsidies being offered by other countries is spurious and deflective. Prior to this industrial action being taken THE HOBBIT was to be filmed in New Zealand. By creating a climate of uncertainty and unrest, and prolonging it by not lifting the 'boycott', the door that was previously shut was opened for other countries to strenuously lobby for the production to move.

In light of the above facts, to suggest that the union was simply "asking to meet on basic terms and conditions" is inaccurate. For over 18 months NZ Actors' Equity has had the opportunity to discuss 'basic terms and conditions' with SPADA as follows:

1. SPADA initially offered to meet with NZ Actors' Equity in February 2009 to discuss the Code of Practice for the Engagement of Cast in the New Zealand Screen Production Industry dated 6 June 2005 (and more commonly known as the "Pink Book").

2. Subsequently SPADA offered to meet on a non agenda basis to have an open discussion in good faith. However NZ Actors' Equity would only agree to meet to discuss an industry wide agreement containing conditions of employment no less favourable than those in Australia to be negotiated by the MEAA. This was unworkable, given SPADA, as subsequently confirmed by the Attorney General on 29 September 2010, could not legally enter into a union negotiated agreement.

3. On 01 October 2010, SPADA offered to meet with NZ Actors' Equity. Having had no acceptance of its offer, SPADA reiterated its offer to meet with NZ Actors' Equity, with some urgency on 12 October 2010.

4. SPADA met with representatives of NZ Actors' Equity on 14 October 2010, and the parties agreed they would enter a period of discussion and good faith negotiation on the Pink Book. Equity has contracted with SPADA that during this period Equity will not attempt to negotiate with or undertake any industrial action against individual productions or encourage or facilitate any of its affiliate bodies or members to do so.

The process that commenced on 14 October is the appropriate manner in which to discuss such 'basic terms and conditions'.

The potential long term damage to the New Zealand screen production sector and wider economy is profound. In order to restore effective working relationships within the New Zealand screen production industry it is essential that NZ Actors' Equity and MEAA acknowledge the consequences of their actions.

It is without doubt the most serious issue to have faced our screen industry in many years. NZ Actors' Equity and their representatives have struggled to comprehend the damage their actions have brought and continue to bring to our industry. It is vital for New Zealand's reputation in the international film community that this unnecessary period of industrial unrest is overcome and a climate of goodwill and trust is rapidly restored.

SPADA hopes that THE HOBBIT can remain in New Zealand and is committed to working with all relevant parties to help give the film's backers, Warner Bros, the certainty and confidence in the New Zealand screen production environment that they require to keep the film in New Zealand.

ENDS.

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