Jackson, the Oscar-Award-winning director of The Lord of the Rings trilogy, said that if a pay dispute with Australian actors unions is not settled soon, he will move production of the film from New Zealand to somewhere in Eastern Europe, Sky News reported.
Australia's Media, Entertainment and Arts Alliance (MEAA) joined forces with the Screen Actors Guild, and said actors should boycott the non-unionized film due to pay concerns.
The unions called for a boycott because filmmakers with The Hobbit asked actors to take a non-union contract, which would take away benefits.
Jackson, a New Zealand native, released an open letter to the MEAA, saying that they are trying to get "money and power" out of the boycott as well as more members.
"I feel growing anger at the way this tiny minority is endangering a project that hundreds of people have worked on over the last two years," he said, according to Sky.
New Zealand provided the backdrop for the first three films, prompting an increase in tourism and more filmmakers to make movies there.
"We have done better in recent years with attracting overseas movies and the Australians would like a greater slice of the pie, which begins with them using The Hobbit to gain control of our film industry," Jackson writes, adding that he is not against unions, and that the film creates thousands of jobs.
