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The Honolulu Advertiser
Posted on: Monday, February 26, 2007

Hollywood, unions head toward showdown strikes

By Alex Veiga
Associated Press

LOS ANGELES — Film industry jobs could take a hit next year as labor unions, Hollywood studios and TV networks grapple to hash out new contracts for actors, directors and writers, according to an economic report released last week.

"We are forecasting some type of a disruption in production activity in Hollywood, whether you go to a real strike or a de facto strike," said Jack Kyser, chief economist for the Los Angeles County Economic Development Corp., which issued the report.

Kyser estimates that Los Angeles County alone could shed around 2,400 jobs in 2008.

"The pain is going to be pretty widespread, both among members of the three unions and the studios," he said.

The current contract covering members of the Writers Guild of America will expire in October. Contracts for members of the Screen Actors Guild and Directors Guild of America expire in June 2008.

The unions are looking to wrangle compensation for movies and TV programs shown through new media outlets, such as mobile phones or online downloads.

Based on tough talk from the unions, media companies have developed contingency plans that would include stockpiling scripts and productions in anticipation of a strike.

That move could lead to a "de facto" strike, similar to the one that led to an industry slowdown in 2001 that put thousands of entertainment industry employees out of work.

Meanwhile, the outlook for film industry jobs in the Los Angeles area this year is promising.

Total film industry employment in the county will swell to 170,300 jobs this year, an increase of 7,300 jobs from 2006, according to the report.