The International Brotherhood of Teamsters is calling on the Justice Department to sue to block Paramount‘s proposed merger with Warner Bros. Discovery unless “substantial and enforceable safeguards are put in place to increase domestic production and protect jobs.”
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 Centery Fox in 2019, noting that it “eliminated production units, significant job losses, and canceled projects.”
A Paramount spokesperson did not immediately return a request for 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.”
