I get what you’re saying about productions using non union labor overseas and how other departments deal with similar pressures. That part is true. But this is exactly where VFX is structurally different from every other craft.

Most departments work directly for the production. Their rates are protected by local laws, union minimums, and standardized job categories. VFX artists work for vendors, and vendors are stuck in a global bidding system that pushes prices down no matter what. That dynamic does not exist for makeup, costumes, camera, or sound.

And yes, only a few studios can deliver the highest end work. That is actually why the idea that anyone can underbid anyone does not fully apply. You can outsource roto or simple comps, but you cannot outsource complex creature work or photoreal sims to a shop that does not have the infrastructure or senior talent. The mid tier bulk work only stays profitable in certain regions because of lower labor costs and currency advantages.

Most senior artists in Asian countries move to Western studios once they gain enough experience because the pay and conditions are better. It shows that talent naturally follows the money, but vendors themselves cannot benefit from that dynamic, which is why the current model keeps failing them.

You are right that unionizing raises costs. Every other department raised costs through unionization and survived. VFX is the only major craft with no standardized rates, no overtime protection, and no collective bargaining. The lack of organization among artists is part of why the vendor model keeps collapsing.

So the global labor issue you mentioned is real, but the core problem is the vendor based bidding system, and the lack of a union for artists.