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A new bill being passed through parliament affects all of these industries, but just how bad could it be?
A new bill being passed through parliament affects all of these industries, but just how bad could it be?

OPINIONMediaMay 20, 2020

There and back again: The bill targeting workers’ right in the screen industry

A new bill being passed through parliament affects all of these industries, but just how bad could it be?
A new bill being passed through parliament affects all of these industries, but just how bad could it be?

A bill is currently being read in parliament that could radically shift employee rights in the screen and gaming industries. Mickey Treadwell writes on the implications of the bill.

On March 3, the innocuous sounding Screen Industry Workers Bill quietly passed its first reading. The bill, which has garnered little attention outside of game development circles, aims to “provide clarity about the employment status of people doing screen production work”. Unfortunately this “clarity” is to be achieved by forcing workers in both the film and gaming sector into contractor roles, massively reducing – if not eliminating – employee rights in the sector.

The Screen Industry Workers Bill has been a long time in the making. The particulars were devised by a Labour-appointed working group in early 2018, but it was first conceived in 2010, when the National government passed the “Employment Relations (Film Production Work) Amendment Bill” (or “the Hobbit Law”). This bill explicitly exempts workers in the film industry from claiming the rights owed to an employee, even when fulfilling the requirements to be considered an employee in any other industry.

This has effectively allowed employers to hire workers as “independent contractors” in name only, demanding the responsibilities of an employee while providing none of an employee’s benefits. The Labour party of the time opposed the bill as a cynical attack on workers’ rights and a capitulation to US film juggernaut Warner Brothers. Unions predicted, correctly, that this would be the death of the New Zealand film sector employee; now that contractors can be made to work as though they are employees with no legal recourse, there is no motivation for an employer to offer an employee contract. 

Our film and television workers have since been locked into an exclusive lower class of employment. Film and television shoots are relatively short-lived affairs and, historically, short-term independent contractor agreements have served both workers and employees well – but the Hobbit Law has allowed these contracts to become almost ubiquitous. Quite apart from the competitive freelance work of production, workers in post-production, IT and finance are often maintained by a series of renewed short-term contracts, giving employers freedom to dismiss them simply by not renewing the contract.

These workers – that is to say the majority of our film and television workers – are not entitled to public holidays, paid sick leave or Kiwisaver contributions from their employers. The “Hobbit Law”, so named for the film that apparently justified these changes, leaves them little legal recourse and, as contractors, they are unable to collectively negotiate or strike.

Path of Exile, one of the biggest MMOs in the world, made in New Zealand, will be affected by this new bill

In the run-up to the 2017 election, then Labour leader Andrew Little bemoaned the state of the industry and the exploitation that has become commonplace. In a Dunedin Town Hall meeting, to a crowd of young film and television workers, he promised that Labour would repeal the bill when it came into power – a promise that was reiterated by the Ardern-led government in the early days of 2018, and included in the “first 100 days” plan

Instead, inexplicably, the task of rehabilitating the bill was delegated to a working group. The compromise devised by this group constitutes the Screen Industry Workers’ Bill. The bill, recognising that film and television workers are no longer receiving employee protection, grants some basic concessions to contractors. Should it pass, these workers will be allowed to collectively negotiate to improve their lot – though they will not be deigned permission to strike, severely limiting their power in these negotiations. 

The screen industry working group also recommended that workers in the game development industry, in which the vast majority of workers are nine-to-five employees, be subject to the same conditions as film workers, uniting them under the “screen industry workers” category, regardless of the radically different nature of work in these sectors. 

New Zealand’s game development industry is rapidly expanding. It is a huge employer offering promising careers to thousands of young creative New Zealanders. Should this bill pass, these jobs will instead become increasingly precarious. Many employers will take advantage of the opportunity to stop offering employee contracts entirely, and those who do continue to support their workers will be doing so at a financial disadvantage. 

Why should these industries be treated differently from every other sector in the country? Prior to 2010, the Employment Relations Act did nothing to hinder employers from securing independent contractors, it merely provided protection against exploitation. Why too should these industries be considered so similarly by this bill? Film production may take a matter of months, but TV series hire the same teams continuously for years – and video games are regularly maintained and updated up to a decade after launch. 

Should this bill pass, it will cement the position of our film and television workers as permanent contractors. It is not an olive branch from industry leaders, it is a slap in the face to those who have organised and fought to reclaim the rights afforded to any other New Zealand worker. Furthermore, it will do irreversible damage to our game development industry at a crucial time in its development. This bill is an ill-advised attack on our workers primarily for the benefit of foreign capital. For this bill to pass under the party of Labour would be a sickening irony.

Submissions on the Screen Workers Bill close on May 25.

mestuff

BusinessMay 11, 2020

NZME and Stuff’s merger saga just reached a bizarre new peak

mestuff

NZME asked the commerce commission for urgent approval to buy Stuff for $1. Minutes later, Stuff’s owner said it was no longer in talks with NZME.

In the space of a chaotic few hours, the long-running courtship between print media giants NZME and Stuff dramatically escalated, as NZME informed the sharemarket that it was seeking urgent government permission to buy its rival. A hour later Stuff published a story in response, in which its owner, Australian media conglomerate Nine, said that talks between the two had broken off last week.

It didn’t stop there, with NZME posting a follow-up announcement just after noon, asserting that it remained”in a binding exclusive negotiation period with Nine” and “does not accept that exclusivity has been validly terminated”.

The episode began through a story on the NZ Herald site, one of a large number of media properties owned by NZME, which stated that it had filed an urgent application with the Commerce Commission to be given permission to buy its rival. It cited a price of $1, which would exclude certain non-media assets, but include all its liabilities, and a date of settlement of May 31.

The story was published at 9.34am. When the NZX opened at 10am, NZME shares jumped nearly 5% in early trading. Just over an hour later, Stuff published a story emphatically rejecting the idea that any such deal had been struck. In fact, a spokesperson for Nine said that talks had broken off last week, and that a statement would be forthcoming.

As well as through their media properties, the spat played out in announcements to the share markets in Australia and New Zealand.

These are the last twists in a saga which has run for five years, with permission twice denied by the Commerce Commission, and an unsuccessful case at the Court of Appeal in 2018. Late last year NZME once again raised the spectre of a merger, after Stuff was unsuccessfully put up for sale by its owner Nine early in 2019.

NZME, which owns a large number of radio stations in addition to its print assets, revealed in its market announcement to the NZX that it entered an exclusive negotiation period with Stuff’s owner, Australian-based Nine Network, on April 23. A letter signed by CEO Michael Boggs and chair Peter Cullinane laid out the case for the merger to be allowed to go ahead despite the ComCom’s resistance.

“NZME believes that the New Zealand media sector is too small for the current number of quality participants and consolidation is urgent in the face of dramatically declining advertising revenue and current general economic conditions,” they wrote.

“The significant obstacle we face is that there is insufficient time to do so given the extraordinary conditions the industry finds itself in. We are mindful of what happened to Bauer Media and we are focused on saving hundreds of jobs and regional mastheads which may be lost if we do not act with this urgency. Time is of the essence and we seek your urgent assistance to allow completion by 31 May 2020.”

The situation comes with no small amount of urgency, as the fallout from Covid-19 and the lockdown has seen print advertising revenues, the lifeblood of both newspaper chains, fall away drastically. This led to a $50m government “triage” package of support for media in late April which significantly weighted its support towards broadcasters like MediaWorks and the state-owned TVNZ.

While most industry CEOs believe some form of consolidation is inevitable, there remains significant disquiet about the prospect of a merged NZME and Stuff, given that the duo represent around 90% of all online news traffic in New Zealand. Allied Press, publisher of the Otago Daily Times and the third-largest publisher in New Zealand, has publicly stated its opposition to the move. NBR publisher Todd Scott has persistently talked about his desire to purchase Stuff, saying he has private equity backing for such a move. However sources at Stuff say Nine has refused to engage with Scott on the matter.

Stuff’s situation is precarious, because Nine has already signalled it does not want to own the New Zealand business, and its own revenues have also been significantly impacted through its print, digital and television assets in Australia. There are fears within the industry that should Nine see Stuff as a loss-making operation for the foreseeable future, as the economy enters its greatest downturn since the great depression, it might not be willing to put cash into Stuff to fund its operations. That is the kind of disorderly event which saw Bauer NZ collapse in early April, leading to the loss of nearly 250 jobs.

With Stuff being New Zealand’s largest employer of journalists, and its chief news source from Hamilton to Christchurch, there is a desire from all parties not to see it collapse. The question is whether NZME is the best available operator, or whether another acquirer – possibly the government through TVNZ – might appear to try and prevent such a major consolidation within a single medium.