New Line: ‘Hobbit’ Labor Deal Not Resolved, Could Still Move

The studio says it could still move production out of New Zealand

Not so fast, my precious: Looks like New Line isn't ready to declare peace in its labor dispute over "The Hobbit" quite yet.

In a statement released Thursday, New Line said reports of a lifted boycott were premature, and that the studio is still considering "alternative locations."

New Zealand labor officials on Wednesday said they had negotiated an interim agreement that would "ensure a peaceful stable period" in the now-greenlit production of the "Lord of the Rings" prequel.

But New Line fired back, calling the reports of a lifted boycott "false."

"While we have been attempting to receive an unconditional retraction of the improper Do Not Work Orders for almost a month, NZ Equity/MEAA continued to demand, as a condition of the retractions, that we participate in union negotiations with the independent contractor performers."

It went on to say that the studio had refused to do so — and would continue to do so.

"The actions of these unions have caused us substantial damage and disruption and forced us to consider other filming locations for the first time.  Alternative locations are still being considered."

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