SAG Tells Its Members Not To Work On 'The Hobbit,' Peter Jackson Threatens To Move Production To Eastern Europe

Just as MGM is looking more likely to have found a way out of its financial quagmire, yet another hurdle has been thrown up in the long delayed/gestating production of "The Hobbit."

On Friday afternoon, the Screen Actors Guild sent out an alert advising members not to accept work on the supposedly "non-union" production of "The Hobbit." The move comes in the wake of the FIA (The International Federation Of Actors) responding to New Zealand Actors' Equity and its umbrella The Media Entertainment and Arts Alliance who are trying negotiate minimum guarantees on wages, working conditions, residual payments and cancellation payments for all actors involved with the potential film.

By Sunday, Peter Jackson had responded by way of a lengthy 1800 word statement. In essence, Jackson believes that the move is a power grab by the MEAA and moreover, that the New Zealand Actor's Equity who are supposedly fighting for the rights of Kiwi actors, actually only has a membership of roughly 100 members on an island of nearly 2000 thespians. In Jackson's eyes, this broad move is nothing more than a hijacking of his film to further whatever agendas both the MEAA and NZ Actor's Equity have. Jackson is angered that this relatively small group (who are technically, not even registered as a union) is potentially in a position to seriously disrupt work on the film (and cost numerous jobs) and he hints that if the issue continues to be pushed, "The Hobbit" will move production to Eastern Europe, but more importantly, future high profile films will be discouraged from shooting in New Zealand.

So what happens next? On Tuesday, the NZ Actors' Equity is calling a meeting of actors on try and bring the studio and filmmakers to the negotiating table. But as Jackson notes, it's not just as easy as everyone agreeing on a number as New Zealand's labor laws also complicate matters as the "law prohibits engaging in collective bargaining with any labour organization representing performers who are independent contractors."

Needless to say, bloggers will be getting a crash course in international labor law after spending a year getting to know the ins and outs of bankruptcy proceedings. It will be interesting to see how this plays out and if Jackson (whose statement was prepped and delivered without consulting Warner Bros. or New Line Cinema) really will pick up and leave New Zealand to finally get this film made.