With nearly 30 screenwriting credits under his belt, Nichols headed into the 1936 Academy Award season upset about labor relations between screenwriters and the Academy of Motion Pictures of Arts and Sciences. The union Nichols belonged to, the Screenwriters Guild (SWG), was having a hard time getting the pay and treatment that they felt their members deserved (per Screenwriters Guild Foundation). With a rival union that was sympathetic to the motion picture studios was threatening to put the SWG out of business, it was time for action.
Nichols, though relatively young, was a known name among screenwriters in the 1930s. He decided to protest the 1936 Academy Award ceremony in response to the Academy not recognizing the legitimacy of the SWG and other unions. The Academy’s stance on unions at that time was that they weren’t necessary for the business, as the Academy already functioned as a union of sorts for those involved in the industry (per History).
Nichols was that year’s winner for Best Screenplay, and he was the only winner who refused to attend the award ceremony. Nichols not only refused to attend the event, but also rejected the award. On two separate occasions, his Oscar was mailed to him, to which he promptly mailed back both times.