Teamsters Union Says DOJ Must Block Paramount’s Warner Bros. Takeover Unless There Are ‘Enforceable’ Job Protections

The International Brotherhood of Teamsters has urged the Justice Department to block Paramount Skydance‘s $111 billion deal to acquire Warner Bros. Discovery unless Paramount agrees to “substantial and enforceable safeguards” against job cuts and supporting increased U.S. production.

via: Deadline

In an announcement on Thursday, the union said that it had submitted its concerns to the DOJ’s Antitrust Division.

“This merger threatens the livelihoods of the very workers who built these studios into industry giants,” Sean M. O’Brien, the Teamsters president, said in a statement. “We’ve seen what happens when corporations consolidate power: jobs disappear, production leaves American communities, and workers pay the price. The DOJ has a responsibility to stop deals that eliminate competition and harm working families. Unless Paramount and Warner Bros. can guarantee enforceable protections for domestic production and labor standards, this merger can’t be allowed to move forward.”

The Teamsters cited The Walt Disney Co.’s acquisition of 20th Century Fox in 2019, noting that it “eliminated production units, significant job losses, and canceled projects.”

A Paramount spokesperson declined to comment.

In an interview with CNBC last week, Paramount CEO David Ellison pointed to an increase in the film slate since Skydance took control of that studio. He also has told analysts that under its new ownership, Warner Bros. would release 15 films per year.

“Our deal is pro-competitive and good for the creator and good for creators,” Ellison said. “Basically, the creative ecosystem now has more places to sell and more scaled buyers and consumers now have more choices.”

Lindsay Dougherty, director of the Teamsters’ motion picture division, said in a statement,” The film and television industry has been in a fragile and fluctuating state for the last several years and entertainment workers are simply trying to survive through that instability. Another mega‑merger is the last thing this industry needs.”