Classical Music: Musician contracts extended while board raises money

Monday, January 29, 2007

Musician contracts extended while board raises money

The Cincinnati Symphony Orchestra's musicians agreed to a contract extension, announced today, while the board of directors conducts fund raising behind the scenes.

And, in case you missed Saturday's story, consultants for the Music Hall project were in town last week to make initial presentations to the "Music Hall Working Group."

According to board chair Rick Reynolds, Josh Dachs presented five different concepts for how the group might tackle various problems.

"The goal is to get the five down to one-and-a-half and then attach a cost," Reynolds says.

He expects that to happen sometime in mid to late February.

8 Comments:

at 1/31/2007 12:46:00 PM

Anonymous said...

I have to tip my hat to the Musicians Union for extension of the contract that was set to expire in September of this year to the same time in 2008.Brillant tactical move. To management and board of the CSO-bad strategic move. The extension of the contract a full nine months ahead of the expiration date and a token raise was given and health care benefits remain the same in order to give the CSO "breathing room for important fundraising activities". The union has bought time for their members by securing there financial position and put the whole burden of problem resolution on the back of management and the board of directors. By doing this the musicicans are now insulated from any of the tough decisions that have to be made in relation to personel costs with the CSO-potential salary roll backs and more distribution of health care costs to the end users-employees- (premiums that my company are charged for health insurance went up 25% this year so standby for news). Since these personel expenses comprise most of the Symphony's costs, the CSO management and the Board have tied at least one of their hands behind their backs as they come to grips with the reason they keep generating deficits-more money going out than coming in. The answer as in the past is to go around with hat in hand looking for more from the same group of people to kick in the cash. If you keep repeating the same activity that got you in trouble in the first place you will have the same result.
To the negotiators for the union- congrats. To the negotiators on the other side of the table, well you reap what you sow. Any company that operates at a loss is "undercapitalized" and until all costs get in line with the revenue streams the losses will continue. I think the solutions are simple here it is just a question of having the will to implement them.

at 1/31/2007 05:09:00 PM

Anonymous said...

the structure of orchestras across the nation need to change...this problem of fixed costs outweighing revenue is of course not a problem for just our CSO.

"I think the solutions are simple here it is just a question of having the will to implement them."

...perhaps...and i may not be as knowledgable as you Mr. Deiters, but it seems that there are soo many implications in cutting the musician's salary (if, of course, that's what you meant by one of the solutions). As someone has stated in a previous post regarding the quality of our musicians and orchestra...this does come with a price. Do we want to compromise this quality?

It seems to me the solution isn't that simple. I certainly don't have the answers.

All i do know is that i love this town's symphony orchestra. I'm hopeing that YOUR criticism Mr. Dieters is also out of a love of the orchestra.

at 1/31/2007 08:29:00 PM

Anonymous said...

Orchestras, like all other arts organization are not-for-profit groups that are reflections of the desires or needs of a community. That community can define itslf with a community only organization or can aspire to a world class organization (or anything in between of course). They don't cost the same however. My feeling--a culture or city shouldn't be defined by it's sports teams.

at 2/02/2007 11:54:00 AM

Anonymous said...

I wanted to respond to the two bloggers who had comments on my earlier posting since I feel these are topics that require thorough discussion and need to see the light of day since the situation becomes worse with each passing, and now more frequent financial crisis at the CSO.
The first blogger-Khoa Nguyen- states that by implication from me the musicians salaries should be cut. If you are faced with a business situation in an organization with a recurring deficit, lower yields from the endowment, actually using the endowment to meet daily expenses, reduced and diminishing overall attendance, compounded by reduced subsription renewals driven by an ill concieved notion that if ticket prices were increased(20+%)as done in the recent past that it will help to cover the shortfall. A first year Marketing 101 student could have told them that they risked driving away a proportion of their paying customer base equel to the increase. This did indeed happen and then some. Add to this mix donor fatigue, lack of options for taxpayer support (which I would strongly oppose), increased salaries for both management and musicians, and an ever expanding management structure even in the light of an ongoing financial crisis not to mention increased and what appears to be unshared health insurance costs that are increasing at large multiples of the consumer price index every year then you have circumstances that will not lead to a happy conclusion. The final point being that with the personel costs for the CSO are probably in the 80 to 90% range of total budget for this organization then the options you have to correct a financial problem start to point in one direction and have diminshed very quickly to very few options. Rollbacks in musicians salaries at other symphonies in crisis have been used in the past. By extending the existing timeframe of the current CSO contract as was done recently with even marginal enhancements was a bad tactical movement by management and a poor finanacial decision from a business standpoint. Even a temporary feezing of current levels and perhaps roll back in personel costs in order to give the CSO some "breathing space" (have you seen that phrase before in another context?) may have been helpful, but now that opportunity is lost and the situation is more dire for the short and long term.
Both the first and second blogger make mention in one form or the other that you basically get what you pay for and if this city wants a "world class" (that dreaded phrase that is thrown around a lot in this town whose meaning bears little relevence to the crisis at hand)symphony then we better step up to the plate. My response to that is balderdash. Whether it is the visual or perfoming arts I view it like a bottle of wine-just because it is expensive doesn't make it good, nor if it is inexpensive it doesn't make it bad. If it is only salaries that we have to draw quality musicians to this oganziation and this city what a myopic view of the CSO and this community the advocates of this position have. We have a Symphony that has an excellent concert hall (granted it needs a little sprucing up), backed by contributors who have probably been for more generous than what has been good for the organization, extensive schedules in both classics and pops formats, winter and summer schedules, not to mention tours both domestically, Europe,and Asia on a regular basis and a recording contract which most symphonies in this country don't have. So if the implication of the other bloggers is that if we don't pay the going rate set by a unionized workforce which seems to have and had the upper hand for some time that there will be a mass exodus of talent from the organization is an argument without substance. This is America and the musicians are free to leave at anytime as it is now to seek opportuniiites elsewhere. This is not indentured servitude. In fact with the current contract they can take a sabbatical and leave for, I believe, up to a year or so to test the waters elsewhere and still comeback to their position with the CSO if they wish. You can see this is starting to look like a one way street.
I have always viewed my comments as observations and not criticisms. I have never felt that a community should be defined by its sports teams either although that arguement always seems to creep into the mix when positions are taken by board members and CSO management and some patrons of the Symphony. My goal is to see that the CSO is restructured in a major way so that it can sustain itself. As of now what I see is an organization collapsing from its own weight and unless something radical is done for the long term that is exactly what is going to happen.

at 2/02/2007 03:29:00 PM

Anonymous said...

this topic is both frustrating and slightly depressing, and i thank you for your response expounding upon this situation. I wasn't necessarily disagreeing with you on this subject, just merely stating that i'm a bit cautious to say that it is a 'simple' solution.

I am in total agreement with you, Mr. Dieters, that there does need to be a restructring of the CSO - of all symphonies - in order to make the business model of our beloved non-profit organizations fully able to sustain their missions and serve the public in a financially healthy manner. Financially, the root of this problem IS the matter of fixed costs outweighing revenue.

But then what of all the other factors? The market demand of Cincinnati, and of the majority of other cities. Can we influence these diminishing demands? Perhaps it's not a matter of cutting salary, but re-evaluating the length of the season. Supply and demand.

Is it the product? With no (composer intended) visual stimuli, can a single-sense artform survive in today's ever more visual society? Furthermore, with pop songs of 3-5 minutes long ruling the ears of the general population, is an hour long Mahler Symphony gonna last in its orginal form to listeners of tomorrow? (for me, ALWAYS!!!)

again, frustration and depression sink in. i realize i've totally gone on other tangents here, but such is my train of thought. perhaps the metamorphosis of symphony orchestras will begin here in the Queen City. that would be fantastic.

at 2/02/2007 03:46:00 PM

Anonymous said...

Hoo boy Steve, I think what you're looking for is the Montevani(sp?} Orchestra!Just a few thoughts or clarifications. "World Class" is sounding a little tired, we often use the phrase tier one or two etc. I used the sports team reference because taxpayer support was mentioned and I immediately thought about how we are adding to the Brown family coffers as well as helping felons to live in the manner they are accustomed via:taxpayer support. I think it's worth comparing. Regarding attendence and prices, I don't know---do you have the numbers. I think they're flat not down. I like your bottle of wine analogy: Rochester, NY has a good symphony--cheap. But I'd rather hear a great orchestra-- they're not cheap however.Touring---not cheap and only expensive ones do it. Why? Day in day out, they're better and people will spend to hear'em. It's sometimes argued that classical music is dead. On the page, to the non musician maybe so, but each performance breathes new life into it differently each time with each orchestra. There are lots of good cheap wines. Personally, I aspire to the great ones. The best young players are drawn to 1)the best performing orchestras 2)cities that interest them. It's hard to change #2. We've lost many good players to better cities and orchestras. We can aspire to be one of those tier one orchestras and if we could come up with some political talent, I suppose we'd have a chance at a tier one city as well. And lastly, and I suppose it's just semantics, there's no crisis here---that's a headline, there are always adjustments (one way or the other).St Louis decided it needed to go backwards and it has in every way. Louisville's orchestra is now a shadow of what it once was. San Diego however---do you know about that one. One donor, one hundred million dollars. One hundred million. How's that for putting your money where you're mouth is. That guy likes music. Me too and I want it better than good.

at 2/03/2007 01:41:00 AM

Anonymous said...

I'm sure everyone will agree that the business model for most American orchestras is just not right. With the way things are, orchestras will always need that last-minute donor to come through and balance the budget. And that's just how it is.

I can understand how many people like Mr. Deiters don't understand the reality of the music world, and the reality of where the CSO and Cincinnati really stand among the rest of the country. You want a great orchestra, you gotta pay for it. And like the previous poster said... Rochester is good, but not great. Music hall is decent, but certainly not great (in any way; looks, size, acoustics... it's not even really a concert hall!). And depending on where you come from, this city is nice but certainly not great. It's not New York, or Boston, or LA (people, don't take offense... you know what I mean). Just ask Liang Wang who was appointed principal oboe last year and left for a job with the New York Philharmonic. He, like many other great talents, will come because the job is open, and then leave because a job in a better city (with better pay) will open up. And yes, there's a recording contract... but no one making any money off of it, just ask Telarc.

And just who is the real cause of most of the problem facing American orchestras today... that's right kids, the American Federation of Musicians. As long as the union is strong, the orchestra will be 52-weeks and salaries will continue to increase.

I'm a musician, and I most certainly believe that the the only way to fix the money problems is to cut the musicians' salaries and shorten the season... but who's kidding who? It'll never happen. And I don't think it should. The orchestra sounds great, the CSO has the largest subscriber base than any other orchestra in America, and there are lots of people in the hall every single week. Attendance is at par (or better) with all the other major orchestras in the country... and for a city that's smaller than the rivals? I think that's pretty darn good.

Nothing has changed. These issues have ALWAYS been an issue, for EVERY orchestra, since the beginning of time. Stop grumbling, let the development department do what they do (like every other orchestra), and just enjoy one of the world's truly great orchestras where, frankly, there's no reason for there to be one.

at 2/03/2007 09:58:00 AM

Anonymous said...

AMEN!

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Monday, January 29, 2007

Musician contracts extended while board raises money

8 Comments: