Louisville Musicians Get Paid, Will Play Saturday

Last Friday, the musicians of the Louisville Orchestra got smaller paycheques than usual, but considering their employer is in Chapter 11 and was threatening to liquidate, it was probably good they got something. According to one report, they only got 20% of their weekly salary; they were to have gotten the remainder yesterday. In addition, the orchestra found the funds to put on their pops concert on Saturday.

Meanwhile in the blogosphere, some less-than-sympathetic online commenters to news reports about the Louisville Orchestra has prompted responses from both Tim Smith and Drew McManus.

Louisville Orchestra Restructuring Slog

The dreary business of the Louisville Orchestra’s restructuring is going forward, with the CEO threatening to close up shop if he has to pay the band.

Today, a US Bankruptcy Court judge ruled that the organization can’t cut its budget by voiding its contract with its musicians,who will now get cheques until April as a result, according to the Louisville Courier-Journal.

In testimony prior to the ruling, the board president, Chuck Maisch, said that the orchestra could only honor the contract by dipping into its endowment; the orchestra’s CEO, Robert Birman, said that the orchestra would simply have to liquidate assets.

It looks as if that the proceedings start up again in Louisville on January 6.

The Consequences of Losing an Orchestra

In an editorial this morning, Hawaii’s Star-Advertiser pointed out an unmentioned, unfortunate consequence of the Honolulu Symphony’s Chapter 7 bankruptcy:

But even in the best of times, symphony musicians had to supplement this part-time salary with side jobs — usually teaching private lessons to Hawaii’s music students. If former symphony members no longer have a base salary to keep them here, many of them will leave the islands, taking an invaluable instructional resource away with them.

The resulting “brain drain” will deal another blow to an arts education that already has been suffering from budgetary cutbacks for years, a situation further degraded by the economic recession.

As the debate goes on in cities around the country about the value of regional orchestras, it’s good to keep in mind that as musicians lose their jobs and leave, the community also loses teachers, homeowners, consumers. It’s something that doesn’t get discussed often enough.

An Orchestra Success Story in Madison

Jacob Stockinger at The Well-Tempered Ear is crowing about his hometown orchestra, the Madison Symphony. Apparently, they practically sold out their holiday concerts this season, and are fiscally sound.

It’s hard to compare this group to the Detroit Symphony, which has a more extensive season and a much larger budget (or did before the strike), but the energy of their marketing–which should be a statement of faith in the music and the performances–is a model everyone can follow.

Charleston Symphony Board and Musicians Reach Agreement. Never Mind, No They Don’t.

They’re certainly keeping things interesting down there.

Last Wednesday, we heard that the board and musicians had agreed to a contract that would get the Charleston Symphony Orchestra up and running again. (The CSO suspended operations in March.) It cuts the number of musicians from 36 to 24 (who will only get $14,000/year plus health insurance) and trims the budget by $1 million (to only $1.3 million).

But there’s still one small matter to settle: the musicians still have a complaint filed with the National Labor Relations Board against the orchestra brass (no pun intended) for shutting down operations back in March.

The musicians and the local American Federation of Musicians are smartly using this as leverage to gain some board power. First, they want board president Ted Legasey and board bargaining committee head Marty Klaper gone. Then, the musicians want 10 new board members to be appointed from a list of nominees they provide.

Today, the board made their own counter-offer. No word yet from the union on whether it accepts.

This is a sprightly show of moxie on the part of the Charleston band members, and a wise move. At a time when there’s simply no money, grab control.

Louisville Orchestra Goes Bankrupt

Earlier this week, an anonymous donor helped the Louisville Orchestra make payroll. Clearly, the gift wasn’t enough to help in the long term. Today, the orchestra filed for Chapter 11 bankruptcy.

This doesn’t mean the end; it does, however, signal big changes as management throws itself on the mercy of the courts. In particular, it looks as if they want to cut the number of musicians to 55 from 71.

Because they’re paid up to December 15, the orchestra will play their Nutcracker performances–they begin tomorrow–up to that date. How depressing.

Orchestra Strike Watch: Detroit Symphony

It’s no surprise that the Detroit Symphony Orchestra today cancelled all concerts up to December 11. The musicians have been on strike for months, and there’s no end in sight; the two sides aren’t even talking.

Here’s how startlingly bad things are financially for the Motor City band, as Jeff Bennett reminds us today in the Wall Street Journal:

The DSO reported a $3.8 million deficit for its 2009 fiscal year compared with a $509,000 loss in fiscal year 2008. Corporate giving, driven largely by Detroit auto makers and parts suppliers, was cut in half, falling to $1.59 million from $3.29 million. The 2010 fiscal year results are due out in December.

That’s almost $4 million dollars on a $31.4 million operating budget, with a primary source of revenue drying up. There’s no way the musicians can be ignorant of the realities here: their city simply can’t support an 85-member orchestra with a base pay even at $82,000 (their base pay was $104, 650).

What the musicians can bargain for–and probably get–is control over how their orchestra is managed. If they feel that the orchestra administration has mismanaged the budget, they should get it in the new contract that musicians be a part of the process. If they don’t think their fundraising is up to snuff, step up and agree to actively participate in raising money, as well as in public relations and marketing.

Clearly the Detroit Symphony musicians are smart and self-starting: while on strike, they’ve mounted and promoted their own concerts, and have articulately argued their case through social media. There’s no reason why they shouldn’t now trade money for power and take hold of their own destinies as the Detroit Symphony Orchestra.

(More on the Detroit Symphony strike)

Louisville Orchestra Heading for Bankruptcy

The Louisville Orchestra are on the verge of bankruptcy and may not make payroll on Tuesday. At the same time, administration is negotiating with the musicians on a new contract.

CEO Robert Birman says, “The musicians aren’t a problem; they’re an expense we always agreed we would have.”

You would assume, hearing this, that Birman and his crew know that they can’t ask the musicians to sacrifice more than they have. But that’s not the case. Management is asking for base pay to drop from an already measly $34,200 to just under $29,000. They also want to lay off 16 musicians.

Birman also had this to say:

This orchestra has to have the discipline and the honesty to live within its means and almost to a person the community is saying we will not continue to just simply bear out this orchestra. They’ve got to get serious about coming together and finding a sustainable platform.

I’m not sure who the “they” are in this quotation, but it can’t be the musicians. Even to think of the players–who really are the orchestra–as a potential “problem” and an “expense” shows what the real issue is.

Raising Taxes for the Detroit Symphony, Cont.

I found a couple of people weighing in on the proposal to raise property taxes for the Detroit Symphony, which has been on strike for almost two months now. Bottom line for both: this would be a quick fix with little long-term benefit.

The Detroit News opined as such:

Musicians rejected a sweetened offer last week, saying the pay reductions it still demanded would compromise the quality of the orchestra. That seems a specious claim, considering that work rules in their contract make it almost impossible to fire a musician whose skills have waned. This contract fight is about the long-term viability of the DSO; taxpayers would do the orchestra no favor by approving a bailout before the tough decisions are made.

After arguing why governments should support cultural institutions, Edmonton Symphony Orchestra conductor Bill Eddins makes a similar point:

Cultural Heritage tax proposals tend to embolden the opposition who thinks that the Arts aren’t important to a healthy social system. And even if the proposed tax passes in the Detroit area I worry that it would just paper over the very real systemic issues that the DSO has been dealing with. Just throwing more money at it does not a solution make.

Five Questions to Ask About Raising Taxes for the Detroit Symphony

In an attempt to end the Detroit Symphony strike, a Michigan state representative wants to make it possible for people in three area counties to vote to help fund the orchestra with a small increase in their property taxes.

It’s worth considering: orchestras, privately run as non-profits, are nonetheless civic institutions, and there’s no reason why property owners shouldn’t pay a little bit for something that improves the cultural life of their city (and their property values). The tax increase would be small, only about $20 on an assessed $100,000 worth of real estate (by my calculations, so I could be way off).

Assuming such an initiative goes before the public, here are some questions to ask before voting on it:

1. Is the orchestra an essential service? These are tough times for Detroit, and before voting to saddle neighbors with an added expense, it’s worth asking if the orchestra is something that the area absolutely needs.

2. How much government money already goes to the orchestra? The Detroit Symphony has taken some hits, delivered by the musicians, for mishandling its budget. Instead of raising taxes, perhaps local governments should pressure the orchestra’s financial managers to more responsibly account for how they use public money.

3. Is this a symbolic act? It’s great to show your love, but such as small amount may do little to solve the problems the orchestra faces.

4. Will this money really go to the orchestra? Can the municipal government take the money and appropriate it for something else? What are the guarantees?

5. In the end, will it really make any difference?

Any more questions? I’d love to hear your thoughts.

More on the Detroit Symphony Strike

The Detroit News reported today that Detroit Symphony Orchestra management hired a lawyer to disuade local station WADL-TV from broadcasting a concert by striking musicians last weekend.

And the Wall Street Journal published a piece on the sad state of the Detroit orchestra. A few points stuck out for me that underscore just how out of touch everyone in that orchestra has been for years:

Since 2008, the Detroit Symphony has cut 30 managerial positions.
The base pay for musicians entering the group was $104,650–and a pension and health insurance.
The orchestra was $9 million in the hole last season, and were $10 million in the red in each of the previous two seasons. They owe $50 million in interest alone.
This is the fifth DSO strike since 1969.

It looks as if a lot of people in that organization–and the board has to take a hit here too–weren’t keeping watch, and were deluded about the state of the orchestra and the city as a whole. It’s not as if the problems with Detroit just happened: the Midwest has been de-industrializing for a long time.

Fort Worth Symphony Musicians Protest Contract Offer

As reported on dfw.com today, the Fort Worth Symphony contract negotiations are growing contentious. The musicians, who have been without a contract since August 1, silently protested management’s proposed cuts on stage last weekend, although most audience members probably missed its significance.

Which is part of the point: it sounds as if the Fort Worth community just doesn’t care very much. Concert sales are down $120,000, and the orchestra had to cancel a number of concerts this year. The municipal arts council sharply cut its funding as well.

The musicians are probably, as orchestra president Andrea Koonsman notes, out of touch with financial realities (including the lack of community support), but it’s also worth looking at the way she and her team has overseen things. Last year, the orchestra lost $242,000 on a $11.9 million budget, according to the article. And they’re paying their music director over $300,000.