Philadelphia Orchestra players OK tentative contract with deep cuts

October 13, 2011|By Peter Dobrin, INQUIRER MUSIC CRITIC

The Philadelphia Orchestra Association Thursday secured the main prize in its Chapter 11 bankruptcy case: a deeply concessionary labor deal from musicians.

On the cusp of the opening of the orchestra's 2011-12 season, members of the ensemble Thursday approved a contract calling for a 15-percent pay cut, reducing the size of the ensemble, and replacing the defined-benefit pension with a defined-contribution plan.

The deal was mediated under the supervision of Stephen Raslavich, chief judge of U.S. Bankruptcy Court for the Eastern District of Pennsylvania, and is subject to the approval of bankruptcy court.

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The American Federation of Musicians and Employers' Pension Fund, the $1.7 billion national plan that would be jilted by the new labor deal, has pledged to fight for up to $35 million it says it will be owed if the Philadelphia Orchestra Association carries out its stated intention to withdraw from the fund.

Musicians accepted the deal only "reluctantly," they said in a prepared statement, because the alternative - a potential strike - could have meant "additional uncertainty and harm to the members of this great orchestra." John Koen, cellist and chairman of the players' negotiating team, said in unusually pointed language:

"It is the self-admitted failures of management and the board that have led us to this point, and we challenge them to make the changes needed to raise the funds necessary to operate and promote the orchestra with the same passion with which we create music.

"The members of the board of directors, in particular, must equal our total commitment to putting the orchestra on more solid financial footing. We hope our sacrifices for the good of the orchestra will inspire the community to demonstrate their support so that today's approval will mark the beginning of a process of renewal and that in four years the Philadelphia Orchestra will be stronger and more financially secure than ever."

In a prepared statement attributed to president Allison B. Vulgamore and board chairman Richard B. Worley, management called the new contract "a critical step toward reaching an important goal within the reorganization process - achieving long-term financial stability for the Philadelphia Orchestra while also maintaining its artistic excellence."

Koen said he was aware of several musicians mulling positions - either in other orchestras, or at universities - who will now have to make their decisions about whether to stay or go.

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