Philadelphia Ratifies 1-Year Freeze and Extension

On May 28, 2009, the musicians of the Philadelphia Orchestra ratified an amended agreement that freezes the 2009-10 salary at 2008-09 levels and extends the agreement for one year where increases will now occur in the 2010-11 season. The Electronic Media Guarantee of $30 per week (and increased to $35 per week in 2009-10) becomes $0 effective May 27, 2009 through September 18, 2011.

This ‘non-negotiation’ was an unusual experience for those accustomed to normal negotiations. Neither the musicians nor management wanted to re-open the entire Trade Agreement; management because of the length of time it could take as the organization continued to lose money, and the musicians because they did not want to re-open provisions such as pension or health insurance, or to make permanent modifications regarding overtime and extra concerts. “We’d like to thank you for what you’ve chosen to do, but we have to tell it’s not enough”, became a frequent refrain from the management side of the table. The musicians understood the challenges the Association was facing, particularly cash-flow, and many musicians were extremely concerned about the 12 staff members that were fired. Because of this, the musicians were willing to contemplate temporary give-backs, and although the contract modifications could not completely cover the gaps in the budget (the deficit must be no more than 0.5% in a year to comply with the terms of the Annenberg Foundation endowment gift restrictions), this puts the Association on a solid footing. This also now challenges the board of directors to step up their funding as well as position the organization to go to outside funders for bridge funding to get the orchestra through this crisis.

  [2008-09] 2009-10 2010-11
Length of Season [53 wks] 52 wks 52 wks
WAGES
Annual Salary [$127,200] $124,800 $130,780
Weekly Salary [$2,400] $2,400 $2,510/$2,520
(9.20.10/3.21.11)
EMG [$30/wk]* 0 0
*EMG is eliminated as of May 29, 2009 [was: $30/wk. in 2008-09 and $35/wk. in 2009-10]

PENSION: Philadelphia froze their private plan in 2004. Members retiring at age 60 (full retirement at age 60 with 30 years of service) will continue to receive the combined POA/AFM-EPF benefit of $75,000 as stipulated in the agreement. There is an additional retirement incentive for those who retire during the course of the extension; the total combined benefit will be $80,000.

AFM-EPF contributions, which currently stand at 8.08% will not increase to 13.125% as was anticipated due to the benefit tracking clause in the CBA but will remain at 8.08% for the duration of the contract extension.

WORKING CONDITIONS:

MISCELLANEOUS:

Thanks to the negotiating team: John Koen, Chair; Jonathan Beiler, David Fay, Jeffrey Lang and William Polk and to the musician board representatives Gloria de Pasquale and Daniel Matsukawa, whose help was crucial to the process. Thanks also to Local #77 President Joe Parente and Attorney Susan Martin.

This bulletin was prepared by ICSOM Secretary, Laura Ross with the assistance of the Philadelphia Orchestra ICSOM Delegate, John Koen.