from the management of the Philadelphia Orchestra:

Proposal Placed Musicians Among Top Two Highest Paid Orchestras In Country While Association Would Maintain Fiscal Stability

PHILADELPHIA, Nov. 6 /PRNewswire/ -- The musicians of Local 77 of the AFM tonight rejected a three-year contract which would balance the salary and pension requests of the musicians with the Association's need to operate in a fiscally responsible manner. Under that proposal, the musicians would receive the second highest base salary, as well as pension, of any orchestra in the country. At the same time, the Association would have been able to work within the financial parameters necessary to maintain balanced budgets.

"David Cohen and the Mayor's office helped carefully craft a contract that would create a balance between the expectations of musicians and the financial interests of the Association," said Peter Benoliel, chairman of the Philadelphia Orchestra Association Board. "It's regrettable that the musicians turned down this substantive offer. We hope they will continue to consider this proposal."

Following are key elements of the proposed contract:

• Salary: Musicians would receive the second highest base salary of all orchestras in the country, with a $1,500 minimum weekly salary the first year, $1,550 the second year and $1,610 the third year -- totaling a $150 increase in base salary. Increases in seniority pay would move the musicians to the third highest in the country, with an increase by $5 in year two and an additional $5 in year three. Musicians would provide their services without compensation for two concerts in the first season, four concerts in the second season and up to five concerts in the third season to benefit pension and salary.
• Media: While there will be no electronic media guarantee, a joint venture would be established to coordinate all broadcast and recording activity. This new business entity would be mutually governed by the musicians and the board. Musicians would receive preferred distribution of the net revenue generated by this company from new electronic media activity. Distribution to each musician would be at least $2,000 for the first year, $4,000 for the second year and $6,000 for the third year, with any additional income to be shared equally by the musicians and the Association.
• Health care: Musicians would have the option of Blue Cross/Blue Shield Personal Choice PPO (paid 100 percent by the Association), the current U.S. Healthcare HMO plan (paid 100 percent by the Association) or the Blue Cross/Blue Shield Indemnity plan (musicians choosing this option contribute toward the premium on a weekly basis).
• Education: Work rule changes would allow the Association to increase the number of educational concerts provided to school children. Musicians also would agree to waive compensation for audiovisual broadcasts of their concerts into Philadelphia-area school systems.
• Increased musician participation: The newly formed Millennium Task Force would be comprised equally of musicians, members of the board and community stakeholders. This nine-member group would be called on to gain a better appreciation of the state of orchestras and find the most effective solutions for The Philadelphia Orchestra as it moves into the next century. Included would be an overview of the Orchestra's fiscal, promotional and fund raising activities; review of artistic planning and presentation; and a media committee to oversee the new joint-venture company. The board also would agree to include two musicians on the 48-member board of directors.
• Pension: The musicians would receive the second highest pension of any orchestra in the country. They would receive a pension of $43,500 plus a $2,500 annuity.
• Work rules: The musicians would perform fewer rehearsals, but would agree to donate their services for additional concert performances. Additionally, musicians would now have the right to approve foreign tour itineraries.

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