Everything's up to date in......Detroit?

Pillaged by fire and crime, Detroit has struggled for over 60 years

Back in 2013, the city became the largest municipality in the nation to declare bankruptcy. Concerning population, Detroit has lost 61% of its residents since 1950 (down from 1.8 million to 700,000). The public schools have become, individually and collectively, an educational nightmare, guided by one of Michigan's emergency managers (this guy used to be in Flint) as well as administrators who have ended up in jail after bribery charges and convictions. A tumultuous work stoppage at the Symphony (DSO) dragged on for months. Could things get any worse?

Financial straits are still dire, and the schools still suffer. There are signs that the population has begun to stabilize, and new construction and renovation of old are combining to offer a renaissance of this once great city. The city was recently named one of the "52 Places to Go in 2017" by the New York Times. Challenges remain, but many community leaders in the public and private sectors are meeting them head on.

The once crime laden "Cass Corridor" is morphing into "The District."
Anchored by the new ice arena, it will include easy access to all of
Detroit's professional sports venues, theaters, loads of restaurants,
and lots more reasons to come into the city.

In the fall, the DSO announced the formation of an adult amateur ensemble, expanding the organization's educational components to a new group of stakeholders. In financial terms, Crain's Detroit Business is boasting a "resounding success" for both the DSO and the Michigan Opera Theater. The symphony ended the fiscal year over $130,000 in the black. Individual donors are up over 30%, surpassing 10,000, up from 7,000 last year. Gifts earmarked for the endowment were over $5.1 million.

Detroit's magnificent Orchestra Hall, reclaimed in 1989

As a result, the orchestra and its musicians negotiated a new three-year contract, achieved well ahead (eight months) of the end of the current agreement. According to the Detroit News, the terms include:

• A 4-percent raise by 2020, the last year of the contract, lifting base pay from $91,259 to $96,096.

• A stipend to tide them over in the 10 unpaid, nonperformance weeks, so they don’t have to file for unemployment insurance.

• More flexible work rules boosted the number of performance weeks from 36 to 38 and will shoulder more of any increases in health-insurance premiums. The number of musicians will stay at 87, well beneath the 96 before 2011.

DSO Music Director Leonard Slatkin has been the catalyst behind much of the orchestra's rebirth and growth. He has made a significant commitment to American music and the orchestra's Carnegie Hall concerts, including all four symphonies of Charles Ives, garnered praise from the oft-critical New York press. A little over a year ago, Slatkin announced that he would be leaving the DSO at the conclusion of the 2017-18 season, offering the organization plenty of time for a search, hire, and transition to a new leader.

In July, the orchestra will embark on its first international tour since 2001, presenting eleven concerts in China and Japan. One would expect the repertoire to include (unlike too many other U.S. orchestras) a healthy dose of American music and the Detroiters do not disappoint. According to the DSO website, Asian audiences will hear Aaron Copland’s Symphony No. 3, Barber’s Adagio for Strings, Bernstein’s Candide Overture, Cindy McTee’s Double Play, and Gershwin’s Rhapsody in Blue.

It was a long decline from the city's heyday in 1950 to its nadir in 2013. But things are looking up all over. People are starting to believe in their city and at least some of its prestigious institutions. One hopes that this will carry over to the Detroit Public Schools. Change has to start somewhere and new minds, new leaders, can start to make that change work.

THE MUSIC IS BACK ONSTAGE AT VERIZON HALL

A fairly large audience in 2500-seat Verizon Hall
Only 1000 showed up for the gala...

Just about as quickly as it began, albeit with less drama, the Philadelphia Orchestra strike has ended. Friday, September 30 was a black day throughout Pennsylvania as Pittsburgh hit the pickets in the morning and Philly walked out shortly before the gala concert, a program filled with the well-heeled. In fact, patrons were left sitting in a silent Verizon Hall for nearly 15 minutes after the starting time before CEO Allison Vulgamore came on stage to announce the concert's cancellation. Apparently, talks were still on-going right up to the appointed hour.

A last-minute backstage negotiating session ensued, but failed. The gala concert was scrapped; two other concerts, on Saturday and Sunday, were canceled. (Peter Dobin, arts reporter, Philly.Com) The entire article is found here.

Allison Vulgamore: Who, me?

The whole contract "negotiation" was merely an extension of the highly-charged and contentious Chapter 11 bankruptcy proceedings of 2011, only two years following Vulgamore's arrival in Philly. It's apparent that the whole mess was intended to eliminate the orchestra's obligation to its heavily underfunded pension. Meanwhile, Vulgamore herself was somehow able to negotiate a substantial contract extension, with benefits almost unheard of in the non-profit business sector. Mr. Dobrin reported on that development in March 2012:

The pact is similar to the one that is expiring. Vulgamore will be paid an annual base salary of $450,000 - but with a list of extras that sweeten the deal considerably:

A "performance-based compensation" cash bonus of between $50,000 and $150,000 per year, though the chair of the orchestra board has the discretion to increase the maximum bonus to $175,000 if warranted by Vulgamore's performance and a "significant" improvement in the orchestra's financial condition.(One has to wonder if she had to give this back.)

A retirement contribution of $125,000 per year, less applicable withholdings.

Up to $15,000 per year for supplemental disability insurance.

"Executive health benefits" of up to $10,000 per year for costs not covered under the group plan.

A car allowance of $5,000, free parking at the Kimmel Center, four weeks' vacation, and $2,000 a year to pay a financial planner.

In addition to compensation under the new contract, she will receive $50,000 by June 2012 as part of an earlier bonus program for which she had not yet received payment.

Vulgamore's next contract upped her ante to $733,242, significantly more than the music director (!) and near the upper end of orchestra CEOs, many of whom also manage the facilities in which their ensembles perform. The Philadelphia Orchestra doesn't even manage a facility it does own! (the Academy of Music)

And although the strike was a scant 48-hours, musicians are still feeling the pain of slashed salaries and benefits from the past. Two percent annual raises don't go far (especially when compared to the CEO).

"It's been a very emotional couple of days, but we're relieved that we're going to move forward and play our instruments again," principal harpist Elizabeth Hainen said.

Simon Rattle arrives this week to lead the orchestra in Mahler's Sixth Symphony.

IT CAN BE DONE!

Four years ago, the Indianapolis Symphony was embroiled in a bitter contract dispute. It ended in a lock-out.

What a difference a few years makes: the orchestra just announced a new three-year agreement (14 months early) that includes a 9.3% raise. While this is great news, players will be shouldered with additional costs of healthcare insurance. Still....

As reported in the Indianapolis Star:

“The Board of Directors is delighted that an agreement was reached 14 months in advance of the current contract expiration,” said Indianapolis Symphony Orchestra Board Chair Vince Caponi in a press release.

“After recent concessionary contracts, we are encouraged that the Orchestra is moving in a positive direction. We thank the ISO’s management and board for their efforts in obtaining an early agreement, and we look forward to a bright future for the ISO,” said Brian Smith, chair of the Indianapolis Symphony Orchestra Committee.

After the bitter 2012 contract battle that led to a month-long lockout for musicians, ISO cites a string of successes, including three straight years of budget surpluses and major growth in ticket sales and fundraising.

Fort Worth needs to discover Indy's secret.

Ft. Worth Nears (Another) Deadline

In early February, I passed on reports that the Fort Worth Symphony Association would not proceed with its "concessionary contract" which would have decreased musician salaries by 8%. That agreement was slated to expire (pretty basically) now. Headway since then? Nothing.

In March, musicians staged a sit-in at the symphony's offices. The local CBS affiliate reported that  the musicians said on Monday, (March 20) management cancelled three scheduled negotiation sessions, without offering alternate dates. “This recklessness, lack of good faith, and dereliction of duty on management’s part cannot be tolerated,” the statement read.

On July 1, the Association published a lengthy "Update and FAQ" section on the orchestra's website. Noting that the current agreement ends July 31, this seems a bit late in the game. Also, several statements go out of their way to paint the musicians as petty.

• In answer to past salary cuts, the statement notes, During the recession, the musicians accepted salary reductions in 2010, and the staff endured layoffs and pension freezes. Since that time, musicians have received increases in wages and benefits in 2012, 2014, and 2015 totaling approximately 5.5%. Of course, this does not mention that the 2010 reductions totaled 13.5%. They are still 8% below 2009 levels. Further cuts put the players further behind.

• The proposed cuts amount to an 8.7% cut in total wages. Further, given the rising cost of healthcare, we are seeking to move from paying 93% of insurance premium downward to 85% – still very competitive among comparable orchestras. Even with these changes musician salaries would remain competitive with orchestras of similar budgets.

• What is the Union asking of the FWSOA?  The Union Negotiating Committee dismisses the current economic conditions and continues to put forth demands for nearly $1 million in increased salaries and benefits over the next three years. They have also submitted more than 50 non-economic “work rule” requests, and we have reached agreement of many of these issues.

• How difficult would it be to meet the musicians’ demands? The demands would create an accumulated deficit of $3 million in the next 36 months. The Orchestra Association simply cannot fund what the Union Negotiating Committee has demanded.  This plainly doesn't add up. When does $1 million over three years equal a $3 million deficit.

The Musicians offered their own lengthy Response to FAQ on their website. They insist that management hasn't done its job in generating new donors and dollars. It doesn't help that the organization has employed four (or is it 6?) development directors in five years. The development staff is also quite small, employing only three members (with no executive in charge) when similar-sized orchestras have staffs 2-3 times that large.

Ft. Worth's V-P of Development

A few more nuggets:

Musicians of the Fort Worth Symphony Orchestra Facts:
●  With the proposed cuts, the FWSO would rank 32nd in salary amongst the country’s top 50 orchestras.  The FWSO musicians' salary would equate to the salary in 2003.
●  Under the management’s proposal, FWSO musicians would earn $42,000 less than a Dallas Symphony musician, and $20,000 below the national average of 50 of the country’s top orchestras.
●  Seniority and overtime are negligible, totaling about $500 per year for only the most senior members of the orchestra.

While the orchestra insists that its health benefit package is "competitive", the real numbers tell a different story:

●  The combination of reduced individual coverage and ZERO family coverage puts the FWSO at the BOTTOM of plans offered by the country’s top 50 orchestras.  
●  This past season, it cost $1746 per month to insure a family on the FWSOA health plan.

It is plainly obvious that these two sides are far apart in reaching any kind of agreement. It can only end ugly.