L.A.'s 'Ecosystem' Beginning to Crack Under Hollywood Strike

"Hollywood is on strike and it is beginning to hurt the city built around the entertainment industry. People are out of work, the local economy is suffering and the biggest blow to both revenue and prestige could be yet to come - the cancellation of the Oscars. As the writers' strike cuts deep, thousands of people who rely on LA's entertainment industry face financial ruin. And the city which has already lost $1.4bn may now lose the Oscars

The writers' union that is leading the strike told The Observer it would not back down even if it meant that the Academy Awards would suffer the same fate as the Globes. The cost to the city would be $130m (£66m), according to the Los Angeles Economic Development Corp, with tens of millions more wiped off advertising revenues.

The strike has already cost the Los Angeles area $1.4bn in lost wages, according to Jack Kyser, chief economist for the Los Angeles Economic Development Corp. The ripple effect is being felt by carpenters, caterers, make-up artists, stagehands, truck drivers and numerous other workers who find themselves out of work and struggling to meet mortgage payments.

'The delicate ecosystem in this town is starting to break down,' said Orla Brady, an Irish actress based in the city. 'My husband and I are seeing friends for dinner tomorrow night. It will be at their house instead of a restaurant because they both work in the film business and they're worried, so they've had to let their nanny go. Then you wonder how the nanny is going to make a living.'

For the rest of the community, there is growing unease and uncertainty. Celebrity stylist Phillip Bloch, who has tentatively started work for the Oscars, said the strike would make itself felt more and more widely. 'Right now it affects you but doesn't paralyse you: it's not like the garbage not being collected or the subway [trains] going on strike. But it could go on a very long time. Imagine a world with no new movies. Then people would notice.'"