Atlanta Symphony Orchestra Players Association Response
to Management's "Information Update"
Statement by the Atlanta Symphony Orchestra Players Association, November
18, 1996:
The ASO management has spent a lot of time and money to promote its position
with the public. If management would devote the same resources and effort
to resolving the issues, we could reach a settlement. The players want
to resolve the dispute so that we can be back on stage in time for the Christmas
concert season. We urge management to join us at the negotiating table
immediately.
ASO Management Statement
- "We anticipate running an operating deficit this year and each
year in the near future"
Response by ASO Musicians
- Management projections have often been wrong in the past. In March
1995 management predicted a deficit of $1 million. The ASO ended the season
with a surplus. In March 1996 management predicted a deficit of $1 million
only to reduce its projection by 75% four months later.
ASO Management Statement
- "Each percent increase in salary equals $100,000 in new expenses
each and every year."
Response by ASO Musicians
- This figure is inflated. Each percentage increase in salary will raise
expenses only by $65,000 to $70,000 per year.
ASO Management Statement
- "The board agreed to drop several issues that had been encumbering
negotiations, such as the board's proposal to increase musician involvement
in education and outreach programs."
Response by ASO Musicians
- ASO management and the musicians were near agreement on most of these
issues, which would help pay for proposed increases. Recently the musicians
announced their own "Hands-On Help" outreach effort for students
in DeKalb County.
ASO Management Statement
- "This is our best solution for the financial challenges we face."
Response by ASO Musicians
- The musicians proposed several items that would help resolve the dispute
at little or no cost to management, like personal leave days and a more
effective procedure for unpaid leaves.
ASO Management Statement
- "[The musicians' counter-proposal] would add $2.5 million in new
expenses.
Response by ASO Musicians
- The difference between the musicians' latest proposal and management's
proposal is only $1 million over three years, less than 2 percent of the
total symphony budget for the next three years.
ASO Management Statement
- "[The musicians' proposal] would require an additional $45 million
in endowment raised in cash in four years to finance the musicians' proposed
increases."
Response by ASO Musicians
- The "Information Update" distributed by the board acknowledges
that "the purpose of an endowment fund is to guarantee an organization's
future by serving as a firm financial foundation, not serve as a cash fund
to be used to meet current or increased expenditures." In the last
10 years, the orchestra's endowment has increased 300 percent, while the
budget has only doubled. The most appropriate way to meet expenses is
through a combination of endowment income and operating income. The musicians
have been at the forefront of new programming ideas and have always been
willing to help in fundraising activities.
ASO Management Statement
- "[Management has] reduced our administrative staff by 8 percent,
leaving us with one of the smallest staffs of any major orchestra in the
country."
Response by ASO Musicians
- During the past six years, staff salaries have increased at a higher
rate than musician salaries. In addition, unlike other orchestras which
depend solely on their own staffs for operation, ASO management has the
support of Woodruff Arts Center staff to accomplish its work.
ASO Management Statement
- "[The ASO] has the 6th or 7th largest endowment of any orchestra
in the country."
Response by ASO Musicians
- When the ASO endowment is combined with the orchestra's share of the
Woodruff Arts Center endowment, the orchestra does indeed benefit from
one of the nation's top ten endowments, which totals more than $60 million.
Unfortunately, comparisons with other orchestras show that the ASO has
achieved a lower rate of return on its endowment than most major American
orchestras.
ASO Management Statement
- "In comparing wages for musicians around the country, it is important
to also consider what it costs to live in their respective cities."
Response by ASO Musicians
- Marginal cost-of-living differences do not account for the significant
costs of the musicians' instruments, which can reach into well into the
6 figure range or higher, whether in New York, Dallas or Atlanta. Furthermore,
Atlanta is no "sleepy southern city," housing and transportation
costs are increasing as the region's economy continues to grow.
ASO Management Statement
- "Artistic excellence is more than just salary."
Response by ASO Musicians
- This is true, but the ASO will not continue to attract the best musicians
if it does not offer a competitive salary.
ASO Management Statement
"The board, in its final offer, has agreed to an increase in the musicians'
salaries, which will require raising an additional $10 million in endowed
funds."
Response by ASO Musicians
- This statement suggests that there are no gains to be made from increased
ticket sales or donations. The musicians are doing their job - providing
a quality product. Management must do its job - fill seats at Symphony
Hall. Management has acknowledged that if it were to consistently sell-out
Symphony Hall, the orchestra would raise another $932,000 each year.
ASO Management Statement
- "Our preference has always been to play and talk so we might have
reached an agreement without disruption of the season."
Response by ASO Musicians
- The musicians did "play and talk" for four weeks. But it
became clear that, for management, "talking" did not mean "negotiating."
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