The compromise agreement resulted in the union winning many of the key goals that they had pushed for, such as pay increases and guaranteed time off, though the company prevented the studio from becoming a closed shop. Due in large part to the strike, Max Fleischer announced that the studio would be relocating to Miami, which was located in a state that was considered far more hostile to organized labor than New York. Many pro-union employees refused to relocated, and following the move in 1938, Fleischer pushed for a new certification election, which the union ultimately lost. However, within a few years of the move, the studio experienced financial difficulties related to the production of two full-length animated films and was ultimately absorbed by Paramount Pictures as a subsidiary.
