WHY SHOULD I CARE?

As a conductor and teaching musician in Iowa, I am sure that many readers must wonder exactly why I should even care about labor strife in places like Texas and Pennsylvania. I don't really consider myself a mouthpiece for musicians around the country. Call me an idealist (yes, sometimes I wished that I lived in Europe, where many of the arts are state-subsidized) if you will. In an increasingly contentious world--economically and politically--I refuse to fall into the trap of expediency but will continue to fight what I feel is the good fight for the art that I love and for the people who make it.

ABOUT PHILADELPHIA:

At only two days, this was nearly the shortest strike on record. That "honor" probably goes to the Chicago Symphony, which settled a 2015 stalemate in little over 24 hours. One has to wonder whether or not the timing of the strike--immediately preceding the orchestra's gala concert--had an impact on the alacrity of the agreement. Could it be that the audience at that performance--the well-heeled donors to the organization--demanded that the strike is settled quickly and fairly?

My own "connection" to this wonderful orchestra goes back to my youth. The "Fabulous Philadelphians" and longtime conductor Eugene Ormandy had one of the most lucrative recording contracts in the business. My collection is still filled with a large number of LPs from their vast library. Philadelphia was the go-to ensemble for just about everything, but my Philly experience goes deeper still.

Ormandy and Cliburn, 1967

The first time I ever heard a Mahler Symphony (no. 1) was, in fact, a live performance given by the Philadelphia Orchestra in May 1976 at the old Auditorium at Michigan State University. Quite frankly, I didn't care what they were going to play. This was the Philadelphia Orchestra(!) and Ormandy was conducting! Now I can remember little of the first half of the show but the second--my initial immersion into the sound world of Gustav Mahler--was a cathartic moment for me. Soon after, I decided--like so many before me--to abandon thoughts of pursuing a law degree and entered music school. It's been a sometimes bumpy ride but here I am.

Old Auditorium, Michigan State University
Yes, the Fabulous Philadelphians played here in 1976.

One more thought about the state of this fine ensemble: it amazes me that, in newsprint and otherwise, a group of orchestras--New York, Boston, Philadelphia, Cleveland, and Chicago--are still referred to as the "Big Five." In 2013 Jame Oestreich reported in the New York Times that In fact, the criteria of membership in the Big Five, never firmly established, began with quantities. They included size of budget, number of recordings, amount of touring (especially stops in New York), presence on radio and television, and number of year-round musicians. This old matrix no longer holds true.

Drew McManus in his Adaptistration blog, assembles a wealth of information each year gleaned from the IRS 990 forms. While these are available on-line, it's much easier if someone else does the work. The current "Big Five" (in terms of total expenditures) is now:

1. Los Angeles Philharmonic ($118 M)
2. Boston Symphony ($88.5 M)
3. Chicago Symphony ($80 M)
4. San Francisco Symphony ($74.5 M)
5. New York Philharmonic ($73 M)

Cleveland comes in at #6 ($51M); Philadelphia has "fallen" to #7 ($45 M). Of course, big budgets are not a harbinger of quality. The Minnesota Orchestra, arguably in the "artistic big five", spends less than $25 M. A more telling picture comes out when comparing CEO compensation, but that's for another day.

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Pittsburgh Symphony management has taken an excessive and possibly unprecedented hard line relative to its current strike. Excerpts from a recent letter from Pittsburgh COO Christian Schörnich to union musicians (dated yesterday, October 4): You must realize that the PSI has an obligation to keep Heinz Hall open and operating to serve our patrons and others as they expect and as may be required. In order to do so, it may require us to hire replacement workers, either on a temporary or permanent basis, as will be determined by the business necessity that we face. (Boldface in the original.)

Yes, the PSI just stated that they intend on hiring scabs to fill the seats of their world-class orchestra. Good luck with that.

The view outside Heinz Hall

In the meantime, the musicians held a previously scheduled free day of music across the city. Read all about it here.

And a final note: Where's Manfred Honeck?

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.

FALLING DOMINOS

....Orchestras continue to fall. This story from Pittsburgh:

Pittsburgh Symphony musicians go on strike, concerts canceled

Management of the venerable orchestra predicts that the combined deficit of the organization will reach $20 million (it currently sits at $11 million). The tried and true solution? Balance the books on the backs of the people making the music (aren't they the people that audiences come to hear?), to the tune (pun intended) of a 15% salary decrease. The ham-handed proposal also includes a "hard freeze" of the pension plan (replaced by a 401k for those with less than 30 years of service) and a reduction in the size of the ensemble. This sounds all too familiar.

Negotiations began in February and got nowhere, ending in the work stoppage. Ten days of effort by the Federal Mediation and Conciliation Service (which succeeded in the Metropolitan Opera near-fiasco a year ago) failed to produce an agreement between the parties.

A story reported by Mark Kanny of Tri Total Media stated, “When new management stepped in at the Pittsburgh Symphony, we undertook a diagnostic situation assessment that caused us to realize that we are facing an imminent financial crisis. That assessment showed that, due to a combination of forces, we would run out of cash and have to close the doors in May/June 2017,” said board chairman Devin McGranahan in a prepared statement. McGranahan and president Melia Tourangeau took office in 2015. 

What combination of forces?

Despite a history dating back to 1898 (except for a 16-year lapse) and world-class conductors such as Fritz Reiner, William Steinberg, Lorin Maazel, and Mariss Jansons, the management is just now figuring out that there may be a financial problem?

Interestingly enough, in one of her first interviews after arriving in Pittsburgh, Tourangeau said, “the priority is to get to a balanced budget. I feel there has been a tremendous amount of cost-cutting that has taken place. In my opinion, we have a revenue problem, not an expense problem.”
Norman Lebrecht, with whom I sometimes agree, offers this assessment, Management’s refusal to compromise clearly is ideological. New PSI Management has decided, against all evidence, that Pittsburgh somehow cannot support a world-class orchestra, and that a “new business model” is needed. This makes no sense. In 2016, the PSO’s Annual Fund hit a record; ticket sales are up; the Pittsburgh economy is dynamic; the Cultural District is thriving. This is no time for the PSI to abandon the idea that Pittsburgh deserves a world-class orchestra.

If ticket revenue is up and the Annual Fund is at record levels, show me the money.

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No one is budging in Fort Worth, where the orchestra has been on strike through most of September. The Star-Telegram published an incendiary editorial on September 12 and there has been no reporting of the rebuttal by the musicians (summarized here):

We (the FWSO musicians) just ask you to consider the following as you decide for yourself about fiscal responsibility. Is the FWSO Management being fiscally responsible when they:

• Fall short on raising enough money to pay the musicians?
• Use a contingency fund every year to cover operating costs?
• Ignore professional advice to expand the fundraising department?
• Have a new Vice-President of Development every year?
• Don’t have a Strategic Plan past the year 2017?

It is obvious that CEO Amy Adkins is out of her element. Development is the most important issue facing the orchestra. The fact that Development V-Ps last an average of one year says something about management at the top.

Little has been said of Board Chair Mercedes Bass, who also serves as Vice Chairman of the Board of Trustees and the Executive Committee of the Carnegie Hall Corporation as well as Managing Director of the Board of Trustees and Executive Board of the Metropolitan Opera (to which she donated $25 million in 2006. And there's more, including a role with the Aspen Music School (member of the Advisory Board), the Aspen Institute (trustee), and Vice Chairman of the Executive Committee and a member of the Board of Trustees of the American Academy in Rome. After divorcing state department official Francis L. Kellogg in 1988 and marrying Texas billionaire Sid Bass, that marriage ended in 2011, but the settlement left her well off.

Her Fort Worth home
(She also has residences in Colorado and New York City)

The Fort Worth concert hall her in-laws built

She could solve the orchestra's finances with a check out of her pin money account, without cutting into more high-profile gifts to a Lincoln Center opera company.

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COULD PHILLY FALL (Again?)

Calling management's latest offer "regressive", musicians of the Philadelphia Orchestra are none too happy either. Once part of the venerable "Big Five" of American ensembles (according to budget size), Philly now sits at number 8, and musician salaries continue to fall further behind their colleagues in cities like Boston. 

The contract has already expired and something (or someone) has to move. CEO Allison Vulgamore's track record is not strong (note her previous "service" in Atlanta). The 2011 bankruptcy still looms large, especially for an organization that maintained a $140 million endowment, owned (and still owns) the Academy of Music, and had no debts! Huh?

The Philadelphia Academy of Music (1857)
And nothing wrong with the acoustics
http://www.totaltheater.com/?q=node/467

The musicians note in their September newsletter:

Although the filing in April 2011 was opposed by the musicians, the public was told that it was a necessary step and that when the Orchestra emerged from bankruptcy, things would be much better.

When the court approved the bankruptcy, the Association made wholesale changes to our pension plan. The Plan was frozen and its administration was transferred to the Pension Benefit Guarantee Corporation, a U. S. government entity. Some musicians may receive lower pensions than they would have earned under the frozen Plan. The retirement benefits which were substituted for the Plan do not guarantee the benefit level specified in the Plan. In addition, the orchestra musicians, who had voluntarily taken a wage freeze the year before, and who had donated a significant amount of money to the Association, saw their salaries reduced by more than 14 percent. The size of the orchestra was also reduced, from 106 full-time positions to 95.

The Association, according to the Philadelphia Inquirer's Peter Dobrin, spent “almost $10 million in professional fees and expenses” on the bankruptcy, and paid settlements of $1.75 million to the American Federation of Musicians Pension Plan, and $1.25 million to the Philly Pops in the process.

More than five years later, Musicians hoped that the Association would view the bankruptcy as a temporary means to regroup and ultimately restore the kind of budget that is necessary to fund a major symphony orchestra, rather than as a way to downgrade the musicians' contract permanently. More than five years later, we are still waiting.

* * * * * * * * * *

Contract talks at the Pacific Symphony (budget $20 million) have halted. Musicians’ Bargaining Committee Chairperson Adam Neeley states, “The Pacific Symphony is the only professional orchestra in the United States with any significant annual budget that does not provide a weekly wage or annual guarantee of wages to its musicians.” Neeley states further, “Musicians have no predictability of their income from week to week, month to month or year to year.”

* * * * * * * * * *

Who is next?

THE BAD, THE WORST, AND THE UGLIEST

Recently I chronicled happenings in three American orchestras, noting that life was good in San Diego (with the best weather in the U.S., it would be hard to beat), rumblings were coming out of Pittsburgh, and the situation in Fort Worth? It hasn't gotten any better. Here's an update:

In Pittsburgh:

Life for symphony musicians in the City of Three Rivers (and big changes from the days of Big Steel) hasn't improved. The orchestra is stilled mired in million dollar + deficits and the orchestra's contract expired a week ago. Since then, things have seemed eerily quiet. Judging by recent history in the overall business (think Atlanta, Minnesota), this is definitely not a good sign.

Pittsburgh, where the Pirates are mired in 3rd place and the orchestra?
It is a gorgeous view, however.

In Philadelphia (what? again?)

The once-great ensemble (remember Stokowski and Ormandy) limped out of its 2011 bankruptcy proceedings with hope for the future. That hasn't happened. Peter Dobrin reports in the Inquirer, Musicians and management of the Philadelphia Orchestra Friday agreed to continue talking for an unspecified period of time beyond the end of the current labor deal, which had been set to expire at 12:01 a.m. Sept 12.

Management had offered no raise for two years and a mere one percent in each of the following three. As of now, no further negotiating sessions are scheduled, but the two sides seem amenable to a "play and talk" agreement for the immediate future. Personally, I trace the orchestra's financial problems to at least three areas:

Philadelphia's Academy of Music

• The orchestra formerly performed in the historic Academy of Music. Frowned on for less than favorable acoustics (although Stokowski and Ormandy seemed to make them work), the flashy, new Kimmel Center was built down the street. It's important to note that the orchestra, instead of being the landlord, is now a tenant. That cannot be financially prudent in difficult times.

• Management. The current CEO is Alison Vulgamore, she who left the Atlanta Symphony in shambles before skipping town. How does this continue to happen? Beats me.

• The fall-out from the Eschenbach years. The orchestra took a great slide in overall quality during the music directorship of Christoph Eschenbach. The infusion of exciting conductor Yannick Nézet-Séguin hasn't been enough to reverse the trend and bring back the faithful.

Fort Worth: On Strike

The musicians called management's bluff of its "last, best offer" of continued cuts and went against the recommendation of its union and went on strike at 12:30 PM Thursday. While the players seemed willing to play and talk, management (that is, out-of-her-element CEO Amy Adkins) went ahead and canceled opening-weekend concerts.

Management is also attempting a war of words in the press: The orchestra employs 65 full-time musicians with an average salary of $62,000 and health benefits. The proposed contract that musicians rejected included a significant pay cut in the first year and then small, incremental pay raises in the following three years. By the fourth year, the pay increases would have resulted in principal players being paid more than $70,000 a year. (From the Post-Telegram)

Unfortunately, this isn't true. Base salary under a new agreement would be $54K. Mentioning principal player's salaries (which are normally negotiated separately) is an unprofessional way of ingratiating the public. We pay $70K a year! Isn't that a lot of money? One has to wonder what the CEO (the former Development Director) is paid some $167K, according to the organization's most recent IRS 990 form (2014).

The basic problem is a simple one. Fort Worth has burned through at least five development VPs since Adkins (herself in that role for 11 years) in the past six years. Leadership is needed in this all-important area; the buck does stop at the top.

Interestingly enough, the Musicians of the Fort Worth Symphony (under that title) are performing next weekend with the local ballet. They have contracted themselves under the terms of the former contract with the orchestra. That little bit of goodwill should go a very long way.

Coming soon: the 2016-17 Quad City Wind Ensemble Season

CORRECTION: The local newspaper is the Fort Worth Star-Telegram.

Read more here: http://www.star-telegram.com/entertainment/arts-culture/article100625872.html#storylink=c