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Edition: U.S. Article Comments (1) Email Print Reprints Read Venezuela opposition pegs back Chavez in parliament | 3:08am EDT Clinton meets Abbas as Mideast peace deadline looms 24 Sep 2010 India races to ready Games Village in time 26 Sep 2010 Israeli settlement freeze ends and peace talks in doubt | 3:12am EDT UPDATE 1-iPhone 4 orders exceed 200,000 in China 26 Sep 2010 Shared Cash flood reshapes investment universe 24 Sep 2010 Online's Ad Challenge 26 Sep 2010 Japan to ask China to pay for damaged patrol boats | 2:08am EDT Management Tip of the Day: Making the right hiring decision 15 Sep 2010 Fossil plant puts sunflower origin in South America 24 Sep 2010 Watched Bishop vows to fight sex allegations Sun, Sep 26 2010 Obama: GOP plans "disastrous" Sat, Sep 25 2010 The week ahead Fri, Sep 24 2010 Unions urge "Hobbit" boycott, angering Jackson Tweet This Share on LinkedIn Share on Facebook Related News Hollywood labor talks likely to be low on drama Mon, Sep 20 2010 Related Topics Fashion » Entertainment » Film » Producer Peter Jackson speaks before a preview and panel session for the upcoming movie ''District 9'' during the 40th annual Comic Con Convention in San Diego July 24, 2009. Credit: Reuters/Mario Anzuoni By Jonathan Handel Sun Sep 26, 2010 8:56pm EDT LOS ANGELES (Hollywood Reporter) - All is not well in Middle Earth. The Hollywood actors guilds and several international unions have issued an alert against the big-budget adaptation of "The Hobbit," stating that their members "are advised not to accept work on this non-union production." The guilds say the producers of the MGM/New Line fantasy blockbuster, to be directed by Peter Jackson, have rebuffed organizing efforts by the New Zealand unit of an Australian actors union. Jackson shot back in a long statement issued on Sunday, hammering Australia's Media Entertainment and Arts Alliance (MEAA) union, threatening to move the "Hobbit" shoot to Europe and claiming his film is being used as a political football to secure gains for the guild. "It sure feels like we are being attacked simply because we are a big fat juicy target -- not for any wrong doing," Jackson said. "It feels as if we have a large Aussie cousin kicking sand in our eyes ... or to put it another way, opportunists exploiting our film for their own political gain." MEAA's Simon Whipp told The Hollywood Reporter that success with "The Hobbit" might pave the way for unionizing other productions in the country, but he also said that in a secret ballot held earlier in the decade, about 80% of 800 Kiwi actors voted to have MEAA open a New Zealand branch. MEAA did so in 2006. Whipp also expressed hope that Jackson would be "the key to unlocking a solution." That does not seem likely now. "The Hobbit" is not officially greenlighted but Jackson, his WingNut Films and Weta Digital have been actively preparing the adaptation of the J.R.R. Tolkien novel. The "Lord of the Rings" director has been casting the two-film "Rings" prequel for an anticipated 2011 shoot, while New Line parent Warner Bros. and the financially troubled MGM work out an arrangement to finance and distribute the pictures. The labor discord in Jackson's home country of New Zealand, where "Hobbit" will likely be shot, has simmered for several weeks. MEAA, the International Federation of Actors (FIA), and others have written to the producers objecting to the refusal to sign a union contract. MEAA has not managed to unionize any productions in New Zealand, making the country a sore spot for actors' unions across the English-speaking world. The unions allege that productions relocate to New Zealand specifically to avoid union terms. But Jackson, in his statement, said targeting "The Hobbit" could have the opposite effect, chasing productions from the country and "endangering" the hundreds of millions of dollars that might flow into New Zealand from back-to-back "Hobbit" films. "Why is this endangered? Because the 'demands' of MEAA cannot be agreed to, or even considered -- by law -- and therefore the only options that remain involve closing 'The Hobbit' down, or more likely shifting the production to Europe," Jackson said in the statement. "It could so easily happen. I've been told that Disney are no longer bring movies to Australia because of their frustration with the MEAA." Jackson and the film's producers claim that actors are independent contractors, making union representation illegal under New Zealand law. MEAA disagrees, citing a court case involving crew members, and adds that there are alternative approaches that wouldn't run afoul of the law: either issuing a non-mandatory contract that provides better terms for actors, or creating a joint venture between the production entity and the union. The dispute ratcheted up on Friday with the member alert from actors unions in the U.S., Canada, the U.K. and Australia. "The (MEAA) agreement for large-budget international studio films ... provides for residuals that are equivalent to those under the SAG (Screen Actors Guild) agreement," the member alert states. "The residuals proposed by the producers of 'The Hobbit' are less in every respect." A New Line spokesperson declined to comment, and Jackson was careful to say his views are not necessarily those of the studio. Reps for MGM, SAG, FIA and the producers were not immediately available for comment. 1 2 Next Fashion Entertainment Film Comments See All Comments (1) | Post Comment Sep 27, 2010 1:50am EDT Make it in China … Everything else is. misterliu Report As Abusive See All Comments (1) Add a Comment *We welcome comments that advance the story directly or with relevant tangential information. We try to block comments that use offensive language or appear to be spam and review comments frequently to ensure they meet our standards. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. 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