Potential transportation strike to derail Hollywood? (THR)

By Nancy Tartaglione

The latest labor dispute in Hollywood could lead to an Aug. 1 strike by thousands of transportation workers, which could shut down most television and film productions in Los Angeles and possibly elsewhere.

According to The Hollywood Reporter, the Teamsters' contract with the studios expires at the end of July, and negotiations appear to be at an impasse. Sources close to both the union and the producers say neither side will budge. "If they're counting on the producers caving, that's the wrong strategy," a studio-side source told THR. "A strike is entirely possible."

The Teamsters Local 399 represents several thousand drivers who move everything from production equipment to star trailers and electrical generators. The union also represents casting directors while the negotiations also include craft workers such as electricians.

A strike would be the third Hollywood work stoppage in less than three years and the first Teamsters action since a series of strikes in the 80s. Producers are already looking at a contingency plan to hire replacement workers, says THR.

One issue divides the two sides: Will the Teamsters' annual raise be 2% or 3%? The 1% difference amounts to tens of millions of dollars per year, according to a management-side THR source.

One concern for management is the upcoming SAG and AFTRA primetime negotiations, which begin in two months. A 3% raise for the Teamsters could embolden SAG and AFTRA to push for the same. After that, the DGA would likely accept no less, and the WGA next year would want 3% as well, says THR.

Another negotiating session is scheduled for Friday.

THR has more.