from the management of the Philadelphia Orchestra:
Musicians Among Top Two Highest Paid Orchestras In Country
While Association Maintains Fiscal Stability
PHILADELPHIA, Nov. 19 /PRNewswire/ -- The Philadelphia Orchestra Association
and the musicians of Local 77 of the AFM agreed tonight to a three-year
contract which balances the salary and pension requests of the musicians
with the Association's need to operate in a fiscally responsible manner.
Under the new contract -- which extends through September 19, 1999 -- the
musicians will receive the second highest base salary, as well as pension,
of any orchestra in the country. At the same time, the Association will
be able to work within the financial parameters necessary to maintain long-term
fiscal stability.
"With the help of David Cohen and the Mayor's office, this carefully
crafted contract creates 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 allows
us to preserve the financial health of the Orchestra for subscribers, donors
and musicians. I am relieved that the strike is over and that members of
the concert-going public will be able to hear the great music of The Philadelphia
Orchestra once again."
Joseph Kluger, president of the Philadelphia Orchestra Association, said
he is particularly pleased with the concept of the new media company. "This
is an opportunity for The Philadelphia Orchestra to take a leadership role
in creating innovative solutions to the challenges our industry faces to
increase recording and broadcasting activities," Kluger said. "By
working together with our musicians, I am confident that this partnership
will increase electronic media activity for The Philadelphia Orchestra."
The Orchestra begins its 97th season -- its fourth under the leadership
of Music Director Wolfgang Sawallisch -- on Tuesday, Nov. 19, with a concert
conducted by Assistant Conductor Andre Raphel Smith, featuring Shostakovich's
Festive Overture, Grieg's Holberg Suite and Tchaikovsky's Fifth Symphony.
Details of contract follow. For more information about the concert schedule,
please see the previous release.
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 over the $1,460 in effect at the end of
the last contract. Increases in seniority pay would move the musicians
to the third highest seniority formula 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
Pennsylvania 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 in the second and third
years of the contract).
- 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.
CO: Philadelphia Orchestra
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