LOTR job ruling puts $300m movie at risk

New Zealand efforts to secure a $300 million movie version of the children's classic book The Lion, the Witch and the Wardrobe could be seriously undermined by an Employment Court decision that may affect the way film crews are hired.

The Lord of the Rings film producer Barrie Osborne has warned of "significant consequences that are unfortunate for the film industry" arising from the case over a film crew member's employment status.

Judge Coral Shaw ruled that contrary to industry understanding, a technician made redundant from the Rings production was an employee and not an independent contractor.

Having staff as contractors gives production companies the flexibility to hire crew only for the filming period, without any guarantee of continuity of employment.

Film companies fear the court's decision could allow other crew members to take similar action, at huge cost to movie-makers.

The ruling means that Wellington model-maker James Bryson can now proceed with a personal grievance case against his former employer, Three Foot Six Ltd.

Mr Bryson worked as a contractor for Weta Workshop when he was seconded in April 2000 by Three Foot Six to work in its miniatures unit. He was eventually offered a position there as a set model technician dressing models for the Rings trilogy.

In August 2001, some staff in the unit, including Mr Bryson, were made redundant. He lodged a personal grievance claim alleging he had been unjustifiably dismissed.

The claim could succeed only if the court ruled he was an employee and not a contractor.

Mr Osborne said future productions were threatened if the ruling was applied elsewhere.

"For me the decision not only has unanticipated consequences for producers and technicians in New Zealand, it also runs counter to the Government's effort to attract international productions like The Lion, the Witch and the Wardrobe."

The ruling also had consequences for fringe benefit tax, ACC payments, holiday pay and redundancy provisions, he said.

Screen Production and Development Association chief executive Penelope Borland said the ruling could create uncertainty among overseas producers wanting to film in New Zealand.

Negotiations to secure The Lion, the Witch and the Wardrobe, based on the second book in C.S. Lewis' Chronicles of Narnia, are at a delicate stage and carry with them expectations of a multiple-film project that could top the Rings trilogy in economic spinoffs for New Zealand.

Mr Osborne said the association expected to have legal clarification next week of what the ruling meant for the industry.

He declined to comment further because of a possible appeal by Rings backer New Line Cinema.

In her decision, Judge Shaw said evidence that Mr Bryson required some training and was expected by Three Foot Six to work regular hours suggested it "treated him as an employee in this regard".

Though relieved by the ruling, Mr Bryson said the case had cast a pall over the industry.

"It just shows that when you're required to work as an employee but you're recognised as a contractor it opens it up to so much abuse because you don't have the protections that people recognise employees have, and that's a very dangerous situation."

Judge Shaw said her ruling was based solely on Mr Bryson's circumstances and should not be regarded as affecting any other employee.

- NZPA


Herald Feature: Lord of the Rings