Oregon Symphony Association Release Statement on Negotiations
August 29, 1996
Portland, Ore.... Don Roth, president of the Oregon Symphony Association
today issued the following statement on behalf of the Board of Directors
and in regard to current contract negotiations between the Oregon Symphony
Association and its musicians, members of Local #99 of the American Federation
of Musicians
"We have a strong desire to see the current negotiations resolved in
a positive and constructive manner. As Oregon Symphony trustees and policy
makers, it is the board's function to focus on fundamental and long-term
issues. Thee are too many examples of non-profit boards that have looked
the other way from hard financial realities until it was too late.
In this negotiation, we have the task of balancing the very real fiscal
needs of our organization with our concern for the welfare and well-being
of our musicians. The fact that the orchestra's total compensation package
has increased 60 percent since 1985 while Portland's Consumer Price Index
has increased 42 percent is a testimony to that concern.
We are very proud of the accomplishments of our orchestra and of our organization.
We are proud that~ we have been able to fulfill Music Director James DePreist's
artistic vision in such areas as the orchestra's debut at the Hollywood
Bowl, regional touring, recordings, innovative concert initiatives, telecasts,
national radio broadcasts and educational programs under the guidance of
Resident Conductor Murry Sidlin We also are proud of our track record in
ticket sales, our trade record in fundraising and our history of cost-effective
management.
The pride in these accomplishments does not diminish the fact that, like
many non-profits, we face serious financial challenges. We are working hard
to keep our projected expenses in line with our predictable income to order
to avoid a pattern of deficit spending which could seriously jeopardize
the organization's future.
Many efforts are aiding in that endeavor. We have asked our board and staff
to further notch up annual fundraising efforts which have already grown
almost 20 percent in the last two years In addition, we have created the
Oregon Symphony Foundation to pursue endowment gifts for the long-term enhancement
of the Symphony's financial picture. We expect our ticket sales, already
exceptional by national standards, to be enhanced by initiatives taken under
a special audience development grant from a national Foundation And we will
continue to squeeze our administrative expenses, which have been consistently
slimmer than national averages.
As part of these efforts, we have asked the orchestra, whose wages and benefits
make up our biggest expense (more than $5 million annually), to be a part
of our plan to build a stronger financial footing. Wile there are some cost
reductions in the contract we have proposed to the orchestra, there is overall
growth in their compensation; in exchange we have asked them to work 15
additional hours per season as part of the special audience development
program noted above. This still places our orchestra's work load below that
of other similarly paid orchestras and shorter rehearsal times reduce this
to 8 hours in the second season. In the 1997/98 season we have proposed
a shift to a new schedule which would allow the symphony to play more of
its series concerts on weekends. That new schedule would at the same time
provide the orchestra members with a 50 percent increase in daytime free
time on weekends to spend with their friends and families.
We believe that the contract proposal offered our musicians (and summarized
on the attached) is creative in providing more income for the Association
while increasing wages for our musicians. While these are indeed challenging
times, we look forward to working together with our musicians to meet these
challenges."
SUMMARY
Oregon Symphony Association Proposal
to Orchestra
8/29/96
Three-year contact ( 1996/97, 1997/98, 1998/99) seasons
A compounded 6.5 percent guaranteed wage increase over three years.
First year: 2.4 percent increase
Second year: 1.0 percent addition increase
Third year 3.0 percent additional increase
Increase in total possible work load from 250 to 256 services per season,
resulting in 15 hours additional work in first year. Reduced to eight hours
in second year due to shortened rehearsals. (A service is either a concert
or a rehearsal and is 2 1/2 hours in length.)
Potential bonus pool of up to $100,00/year based on exceeding projected
ticket income (begins in 1997/98).
Revenue-producing schedule chances beginning in I 997/98 to allow for more
weekend concerts. In exchange, musicians are guaranteed a minimum of 25
weeks with two days off in row and a minimum of 30 weeks with one weekend
day free until 6 or 7 p.m. (50 percent increase over current contrast)
Fully paid family health benefits with a number of advantages over current
plan. Small increases in dental co-pays and deductibles.
One-year reduction in the Employer-paid pension contribution rate (from
8.5 percent to 6 percent). Restored to 8.5 percent in years two and three.
Administration of flexible spending account for health and dependent care
continues. Employer contribution of $350 eliminated in year two (in line
with majority of employers who offer this benefit)
Addition of seniority pay benefit in third year of contract for the first
time.
Improvements in telecast payment, severance payment, guaranteed solo pay.
Added musician participation in the affairs of the orchestra through artistic,
scheduling and safety advisory committees.
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