Philadelphia Orchestra under Charles Dutoit (Chris Lee photo).
The Philadelphia Orchestra’s musicians have agreed to delay a slated 4.8 percent pay raise in their current contract as well as accept the temporary elimination of their Electronic Media Guarantee (EMG) and other work rules and benefits concessions.
Following the trend of other major U.S. orchestras facing financial deficits, the Philadelphia Orchestra announced voluntary cuts yesterday that promise to save $4 million in 2010 and 2011, including a reduction of 4.8 percent in negotiated salary for players.
“For a Big Five orchestra to have voluntary talks about modifying a trade agreement, and to alter the terms of it, shows that the musicians were aware of the financial situation,” a deficit potentially as high as $3 million, “and wanted to do their part to help,” said cellist John Koen, lead negotiator for the musicians.
“They’ve been truly amazing,” said the orchestra’s executive director and chief executive officer, Frank Slattery. “What the musicians did here was pretty heroic, and they did it in a fashion that was as open and as giving as I can imagine.”
Philadelphia Orchestra musicians are known as some of the toughest negotiators in the country, and though yesterday’s vote reportedly was not free of dissension, musicians speaking anonymously confirmed that the attitude was overwhelmingly positive.
In the course of the negotiations, the current contract was extended from three to four years and now will expire at the end of August 2011. That will allow the 4.8 percent raises promised for September to be deferred until the fourth year, beginning in September 2010. The minimum salary then will rise from the current $124,000 to $131,040.
Other cuts included the electronic-media guarantee paid to musicians for recording activities, saving $194,740 annually starting in 2010. Work-rule changes and waived fees for extra concerts will save $265,000 annually in both 2010 and 2011. Pension obligations will be reduced by $1.75 million. The musicians also have pledged to raise $500,000 on their own to contribute to the orchestra’s annual fund. Overall, those factors will reduce musician costs by 10 percent. [via Philadelphia Inquirer]