1979 strike and aftermath
Due to the impasse between the union and several studios over the runaway production clause, the union decided to declare a strike on August 7, 1979. The move caught many studio executives by surprise, as this was the union's first ever strike action. At Hanna-Barbera, the main target of the strike, several hundred employees picketed outside of the studio, prompting the Los Angeles Police Department to send officers. Studio cofounder William Hanna expressed sympathy for the strikers, telling one picketer, "I understand exactly what you are going through and sympathize completely". The strike came during a critical time for the studios, as many of the studios were trying to produce content in time for the beginning of the fall television season that September, and a missed deadline could have seriously jeopardized their contracts with the Big Three television networks for Saturday-morning cartoons. Faced with this possibility, the studios agreed to the clause after several days of striking. The strike and resulting contract, which had a three-year length, were largely seen as a success for the union, and within a week, Ruby-Spears incurred a $50,000 fine from the union for violating the runaway production clause.
Following the strike, many animation studios began to make changes so as to continue outsourcing their productions. For starters, many companies circumvented the clause by simply reducing their local production capacity through firings, allowing them to continue to outsource work to other countries. Prior to 1979, Hanna-Barbera employed many Canadian graduates from Sheridan College, but after the strike, the company revoked their O-1B visas, forcing many of them to return to Canada. While the union had the opportunity to contest visas, it was unlikely that the federal government would have allowed them to veto that many, and Hanna-Barbera told many of these workers that their visas being revoked was the union's fault. At the same time, many studios began to negotiate deals with start-up studios in Canada, South Korea, and Taiwan, regarding outsourcing. Meanwhile, MPSC attempted to strengthen their cause by pressuring their members into not working for studios that had still not ratified a union contract. Animators who did so were fined by the union, leading to some dissension among the union members. By 1982, despite the clause, Hanna-Barbera was outsourcing about two-thirds of their total animation work from studios in South Korea and Taiwan. By the time contract negotiations were set to come up again, many of the studios were willing to fight back against the union's push for greater protections against runaway productions, leading to another labor strike.
In 1982, as the contract was set to expire, negotiators from the union and the studios met to discuss the terms of a new contract. While the negotiators had numerous points of contention regarding such topics as minimum wage, sick leave, and allocating screen credits, the biggest issue by far concerned runaway productions. While the union sought to expand the coverage and enforcement of the clause they had included in the previous contract, many studios wanted the provision removed entirely. At the time, the union represented about 1,600 members and had contracts in place with 45 studios, though a majority of the production work occurred at just a few studios, including Disney, Filmation, Marvel, and Hanna-Barbera. Picketing commenced outside many studios, and work on existing projects was halted. However, the strike lacked support from MPSC's parent union, the International Alliance of Theatrical Stage Employees, and many of the studios were in a better position to weather the strike than they had been in in 1979. As a result, many of the larger studios held out against the union's demands and opted to outlast the union, which struggled to keep up morale among its members, with many of them working under the table for the studios against union orders. In early September, the union allowed members to return to work at smaller studios, and in early October, with many members resigning from the union and returning to work, Local 839 signed an agreement with studios that did not include protections against runaway productions, leading to the strike's end on October 16.
On July 31, about 400 members of MPSC gathered for a meeting to discuss the contract negotiations and hold a vote to authorize a strike. Following heated debates that continued into the night, the members there voted by a two-thirds margin to authorize the union leadership to call for a strike if needed. Additionally, unlike the 1979 strike, where only a few studios were targeted, the union decided that this strike would involve the entire represented animation industry, as they felt that the scope of the strike would apply more pressure on the studios that were strongly opposed to the runaway productions clause. Additionally, the timing of the strike, much like the 1979 strike, would coincide with the leadup to the fall television schedule. After several more days of negotiations, the strike was set to commence on August 5.