After a roaring start for American filming in Quebec last winter, fears of a second labour dispute in two years in Hollywood are worrying Montreal studios. The repercussions could be significant, as local productions are returning to normal following exceptional post-pandemic years.
“Right now, the sword of Damocles is the outcome of the labor dispute in the United States,” says Jean-Philippe Normandeau, vice-president responsible for studios and international development at MELS studios.
The Teamsters union, which includes drivers, makeup artists and animal trainers, is in intensive negotiations with the Alliance of Film and Television Producers (AMPTP). In the absence of an agreement, the actors could refuse to film out of solidarity, even if the shoots are abroad, believes Mr. Normandeau.
A second union — which represents technicians such as costume designers, editors and sound recordists — recently reached a tentative agreement with the major studios. For the past few days, its members have been asked to vote on the deal in a vote that runs until July 17, according to The Hollywood Reporter.
The industry is following the vote closely. In 2021, the previous tentative agreement was rejected by union members by 50.4%. The strike was narrowly avoided thanks to a second vote conducted only among union delegates.
Mission: recovery
Series Ghosts from the CBS network, the new Karate Kid with Jackie Chan and Ralph Macchio, the action movie Mayday Skydance Studios (where they come from Impossible mission, transformers) with Ryan Reynolds and Kenneth Branagh… Last winter, Montreal hosted five major productions. These projects generated the equivalent of more than ten thousand jobs.
“As for the studios, everyone was full,” notes Jean-Philippe Normandeau, who points out that projects are ending one by one, and that what comes next is much less certain. “Currently, we are [rempli] at half capacity compared to winter [dernier] ” he says.
The same story comes from the vice-president and co-founder of Grandé Studios, Andrew Lapierre.
Right now we are experiencing a slowdown, caused by a fear of a strike in Los Angeles, mixed with a slowdown in the global industry. Many productions are on hold.
Andrew Lapierre, Vice President and Co-Founder of Grandé Studios
Last year, the company built two additional studios, which were not filled this year. Quebec’s announcement in its recent budget of increasing the basic rate of the tax credit for film production services from 20 to 25% in order to attract foreign filming is therefore timely. “Without the increased tax credit, we would not even have been in the conversations [pour être un lieu de tournage] “, he judges.
Mr. Lapierre considers himself lucky: the series Ghosts has been filmed in the Grandé studios for years. The series Seaside Amazon is using its trays until November.
Most studios in Montreal have American bookings for the fall, but they are waiting for the green light from American producers once negotiations are complete, explains Jean-Philippe Normandeau. “For now, everyone is waiting. In the industry [des tournages]as long as you have nothing signed and as long as people have not arrived in Montreal, you have nothing concrete.”
And the Quebec filmingis ?
“We’re having a mixed year” for Quebec filming, says Andrew Lapierre of Grandé Studios. “This year, we’re working much harder since the local market is slow.”
Just two years ago, there was a shortage of workers in the industry, he recalls. During and after the pandemic, production increased, while the government offered additional financial assistance to the industry. “The industry was running at about 130% capacity. It was abnormal,” Mr. Lapierre points out.
In 2023, the specter of a strike by the Union des artistes and the AQTIS had accelerated the start of several productions. This year, local production has started to rise again, but without being as active as in past years. Mr. Lapierre estimates that local production is at 75% of its pre-pandemic turnover. Broadcasters only gave series confirmations in February, whereas this is normally done in the fall.
For their part, MELS studios do not notice any significant drop. The studios that host productions of STAT and D’Indefensible have a “very robust business.” The same goes for their equipment rental service.
Quebec projects still come to us in terms of equipment and other things. It’s working.
Jean-Philippe Normandeau, Vice President responsible for studios and international development of MELS studios
However, even in the case of MELS studios, this is not enough to offset the decline in American filming. “There is a transfer of labour to Quebec filming that has resumed, but it does not fully compensate for the labour that is not used by the American filming that has finished and for which we are waiting for the next steps,” explains Jean-Philippe Normandeau.
Bernard Larivière, president of the AQTIS 514 IATSE union, which represents Quebec technicians, qualifies the industry’s fears. “We could say that we feel a decrease, but it’s more of a return to normal [d’avant la pandémie] ” he explains.