Detroit Ratifies 4-Year Agreement

On April 8, 2011, following a 27-week strike, the musicians of the Detroit Symphony ratified a four- year agreement that is retroactive to August 30, 2010 and continues through August 31, 2014. The difficult economic situation in Detroit and the state of Michigan were exacerbated by management’s stated goal of redefining the Detroit Symphony Orchestra.

The negotiating process actually began in April of 2009 when management unsuccessfully attempted to re-open the previous three-year agreement which expired in August 2010. What followed was a difficult and hostile two-year negotiating period. Management’s attempt to address the DSO’s deficits, whether due to external circumstances or self-inflicted, was to introduce two drastically regressive contract proposals, one even worse than the other. The musicians received both proposals – Proposal A and Proposal B – on June 9, 2010. Proposal A was “on the table” for discussion but had an expiration date of August 28, 2010. Should the musicians refuse to accept Proposal A by August 28, Proposal B had even further punitive terms and would become the only proposal on record.

The terms of Proposal B were imposed on the musicians and led directly to the 27-week strike. Terms included a three-tiered wage structure with very deep wage cuts, withdrawal from the AFM-EPF and freezing the private DSO Pension Plan, drastic cuts to health insurance benefits, massive changes to the musicians’ job description, weakening the tenure clause that included removing peer review, service conversion, reductions in the size of the orchestra and weeks in the season, and an attack on the orchestra librarians by removing them from the bargaining unit.

By contrast, the musicians’ major goal at the outset of negotiations was to remain one of the top 10 American orchestras in the country, with a secondary goal to maintain the quality of the orchestra and begin to recover previous salary losses.

In the end, the strike was not about money or power; it was about respect, or lack thereof, of the musicians. The resulting settlement, according to DSO musicians, is best described in terms of what was not agreed to – the librarians remain as part of the bargaining unit, there is no two or three-tiered wage system, the pension remains intact, the cuts to the medical insurance were limited, and there is no service conversion. The agreement to perform community services is completely optional and is additional compensation at fair rates. Changes to working conditions are significant but are not debilitating.

The orchestra is grateful for the outpouring of support from financial contributions and letter writing campaigns, and they are especially grateful for their Local officers and attorney; please see Thank You! at the end of this bulletin.

AFM-EPF & Private Pension:

[WAS - Musicians participating in the Private Pension plan receive a 6% contribution to the AFM-EPF, while musicians hired after September 2007 receive a 7% contribution to the AFM-EPF only; both AFM-EPF contributions are paid on scale wages plus 15% of seniority scale. The DSO pension plan benefit is $30,000 per year for musicians with 85 points (combined age plus seniority).]
BECOMES – AM-EPF percentages increase to 6.54%, 7.63% and 16.35% due to adoption of the Rehabilitation Plan. Effective September 1, 2011, all members hired after September 2007 will also receive a 3% contribution to their individual 403(b) account.

ORCHESTRA SIZE: [WAS – 96 musicians plus 2 librarians] BECOMES – in 2011-12 there will be no less than 81 musicians plus 2 librarians; in 2012-13 there will be no less than 83 musicians plus 2 librarians and in 2013-14 there will be no less than 85 musicians plus 2 librarians.

VACATION: Reduced as of September 1, 2011 from 9 weeks to 4 weeks.

INSURANCE:

Health – The standard PPO that included a $250/$500 (single/2 or more) deductible, 10% co-pay to $1,000 out-of-pocket, prescription co-pay of $10/$40, $300 FSA contribution and annual musician premium contribution of $520 (single)/$1,040 (2 or more).
BECOMES - a HDP (high deductible plan)/HSA (health savings account) with a $3,050/$6,150 (single/2 or more) deductible and management HSA contribution of $1,000/$2,000. There is no premium or FSA contribution. Maximum annual out-of-pocket for a family increases from $2,240 (not including prescriptions) to $4,125 (including prescriptions.)
A HMO is also now available with low co-pays, zero deductible and no premium contribution.
Dental - Annual benefit cap per person is reduced from $4,000 to $2,000.

TRAVEL:

Runout concert distance has been increased from 30 miles to 45 miles (one way) from Orchestra Hall without mileage payment; for Runout concerts 45-75 miles from Orchestra Hall, mileage will be paid at the current IRS rate.

AUDITIONS:

• At the request of the Music Director and Audition Committee, immediately following a final audition before a decision is made, a super-final may be held in front of the screen (previously all audition rounds were behind a screen.)
• Orchestra members serving on an Audition Committee will be paid $12.50 per hour [WAS – orchestra member received service credit.]

WORKING CONDITIONS:

Community Outreach – Optional work will be offered to orchestra members. During the 2011-12 through 2013-14 seasons, $1 million will be allocated for additional orchestra services; for musicians who “opt in” for these type services an additional $1 million will be allocated for non-orchestral work (chamber music, coaching, teaching, master classes, lecture/demonstrations) during the same period.

MISCELLANEOUS:

The DSO will become signatory to the AFM Integrated Media Agreement with the Audio Buffet.

THANK YOU!

Finally, the musicians of the Detroit Symphony Orchestra would like to acknowledge the outpouring of support they received from AFM members in ICSOM and beyond. It was absolutely essential to their ability to weather a six-month strike and reach a satisfactory outcome. Their gratitude goes to all of them.

Thanks to the negotiating team: Karl Pituch, Chair; Joseph Goldman, Haden McKay, Craig Rifel and Marian Tanau. Thanks also to Local #5 and to Vice-President Douglas Cornelsen.
Special thanks to Local #5 President Gordon Stump and Secretary-Treasurer Susan Barna-Ayoub for their unstinting support, and to Counsel Leonard Leibowitz for his expertise.

This bulletin was prepared by ICSOM Secretary, Laura Ross with the assistance of the Karl Pituch, Detroit Symphony Negotiation Chair and DSO ICSOM Delegate, David Everson.