SOURCE The Philadelphia Orchestra Association
11/11/96 18:25 EST http://www.prnewswire.com
PHILADELPHIA, Nov. 11 /PRNewswire/ -- The Philadelphia Orchestra Association Board met today and unanimously agreed to urge the musicians to reconsider the three-year proposal crafted by the Mayor's office. This compromise proposal was approved by the Board on Tuesday, Nov. 5, but was rejected by the musicians later that evening.
"We are deeply disappointed that the musicians did not ratify the three-year contract proposal put together by David Cohen, which had been agreed to by lead negotiators for the Association and the musicians' union," said Peter A. Benoliel, Chairman of the Board of the Orchestra Association. "The Cohen proposal presented to the musicians on Nov. 1 was a compromise that addressed the needs of the musicians for a fair and competitive compensation package. The proposal also contained a creative solution to our mutual desire for increased electronic media activity, continuing the tradition of innovation for which The Philadelphia Orchestra Association has been recognized throughout its history. While the Board had some reservations about certain aspects of the compromise contract, it addressed the Association's needs for long-term financial stability. Therefore, in the expectation of approval by the musicians, the Board approved the offer on Nov. 5."
"It is our sincere hope that the musicians will further review this proposal," Mr. Benoliel added. "If there are any details of the proposal which are unclear to the musicians, the Association is prepared to clarify our understanding of those terms in advance of their reconsideration of the Mayor's contract proposal."
The Association Board further unanimously resolved that it is not willing to consider the one-year contract subsequently offered by the musicians, because it would not provide the Association with the long-term financial stability of a three-year contract nor allow the Association to develop the joint venture with the musicians to increase electronic media activity. The musicians' one-year proposal would also create a climate of uncertainty for fund-raising and subscription sales, as well as the potential for another strike next fall. Such an event would be devastating to subscribers, donors, sponsors, volunteers, the music-loving public and the musicians themselves.
"This strike has taken a severe emotional and financial toll on the Association and the Greater Philadelphia community," said Mr. Benoliel. "We cannot subject the Orchestra, its supporters and the city to the possibility of another strike, which a one-year contract would create. The financial burden of this strike increases with each day and each week that passes."
Highlights of the Cohen three-year compromise proposal:
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. Total annual minimum compensation for a musician with at least 25 years of service would be $90,640 in the third year of the agreement.
Media: A joint venture would be established to coordinate all broadcast and recording activity. The musicians would play a role that is unique in the industry by participating in this new entity, which would be equally governed by the musicians and the board. In lieu of a media guarantee, musicians would receive preferred distribution of the net revenue generated by this company from new electronic media activity. In addition to their annual minimum salary, musicians would receive 100% of the net revenues until each musician received $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 an improved 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 any additional 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: $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.
Back to News Page