The claims, made by actress/producer Anna Wilding, are based in part on a comparison of working conditions in New Zealand and the requirements the production company would be forced to comply with in the United States. Pay scales are also, according to one report, about one-sixth what they would be under union rules in the United States.
Many of the people involved with the production clearly don't feel mistreated, and some have spoken up in defense of the financial decision to make the movies in New Zealand because of lower production costs. A strong union sentiment such as exists in the United States doesn't yet prevail in New Zealand, but as more and more television shows and movies are produced there, the situation may change. But if labor organizes in New Zealand's film industry, would it be able to remain competitive with the rest of the world's film meccas?
A complicating factor is the fact that New Zealand's economy is currently reeling under the impact of rising inflation and a declining New Zealand dollar. The extras working on Peter Jackson's "The Lord of the Rings" may not be doing badly, but eventually the pay may turn out not to be so great after all.
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