Telugu Film Industry Shoots Grind to a Halt as Wage Hike Deadlock Enters Second Week

A standoff between producers and the Telugu Film Industry Employees Federation over a 30 per cent wage increase has paralysed shoots.

Team THR India
By Team THR India
LAST UPDATED: AUG 14, 2025, 13:51 IST|5 min read
Telugu Film Employees Federation Call For Strike
Telugu Film Employees Federation Call For Strike

Telugu film shoots have been suspended for a second consecutive week as a dispute between producers and the Telugu Film Industry Employees Federation (TFIEF) over a proposed 30 per cent wage increase shows no sign of resolution.

The strike, which has brought production to a standstill, is already threatening to delay several films currently in the works. The TFIEF, along with allied craft unions spanning departments from stunt work to make-up, has defended its wage hike demand, pointing to the sharp rise in production costs for films competing in a nationwide market — even as top stars and directors command fees running into several crores.

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Producers, however, argue that outside of a handful of pan-India blockbusters, many films fail to recover their costs. They also take issue with union practices they say inflate budgets, citing high membership fees and mandatory hiring rules that, according to producers, force crews to be far larger than necessary.

Speaking at a media interaction at Prasad Labs Preview Theatre in Hyderabad on Monday, a group of small and medium-budget producers laid out their grievances. Among them were Sreenivas Kumar Naidu (known as SKN), Dheeraj Mogilineni, Rajesh Danda, Chaitanya, Shivalanka Krishna Prasad, Bekkem Venugopal, Sharath and Anurag, Madhura Sreedhar, Maheshwar Reddy, Vamsi Nandipati, Harshith Reddy and Rakesh Varre. “Approximately 250 Telugu films release each year, of which less than 50 have a budget exceeding ₹100 crore. Most producers work with smaller budgets,” said SKN, producer of the recent hit Baby, according to a report by The Hindu. “Producers are not cash bags,” he added.

Others detailed how, in their view, union rules inflate costs on even the simplest shoots. “If we have to film a conversation between two actors in a room, we require a few lights, cameras and a small crew. Due to union rules, members of each craft bring in several assistants. For a small scene, we end up hiring 80 crew members,” said producer Madhura Sreedhar.

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Rakesh Varre, whose low-budget debut Evvariki Cheppoddu was made for ₹1.5 crore without union members, contrasted that with his follow-up Pekamedalu. Hiring unionised crew, he said, pushed the budget up to ₹2.5 crore. “The myth that producers and actors make large sums does not hold true for smaller teams. There is no guarantee of profits from theatrical releases or digital rights. OTT platforms do not pick up films unless they have well-known actors.”

The Telangana State government has taken steps to resolve the issue by putting together a committee that will hold discussions with all relevant stakeholders to end the stalemate.

Komatireddy Venkat Reddy, Minister of Cinematography and R&B said, “Discussions between the two sides will help thrash out an amicable solution.” He showed support for the workers but made a case for the difficulties faced by small producers in recovering their money. “Resorting to strikes is not an appropriate decision,” he said.

With negotiations stalled, the wage dispute has left the Telugu film industry facing a logjam at a time when producers and crews alike are navigating volatile box office returns and rising overheads. Neither the TFIEF nor the producers have indicated when talks might resume.

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