Indianapolis Symphony Orchestra musicians’ contract negotiations remain stalled and another week of concerts has been
canceled after a Saturday deadline passed with no resolution.
ISO executives and American Federation of Musicians Local 3 negotiators have agreed to many of the financial details in a
potential five-year agreement that management announced last week, but they're stuck on a clause that would allow early
contract termination.
Musicians had until Saturday evening to decide on the offer.
As part of an agreement in principle, musicians would accept a 32-percent pay cut in the first year of the pact. Starting
salaries would drop from $78,000 to $53,000. Pay then would increase every year, reaching $70,000 in year five.
At issue is a management-proposed clause that would allow either side to cancel the contract after the third year.
Use of the clause hinges on the ISO’s ability to boost its fundraising by millions of dollars every year.
The organization usually takes in about $6.5 million every year through its governing body, the Indiana Symphony Society,
and a separate arm that manages its endowment, the Indianapolis Symphony Orchestra Foundation.
ISO leaders last week outlined much more aggressive fundraising goals: $9.8 million in the contract’s
first year, $9.7 million the second year, $11 million the third year, $11.7 million the fourth year, and $12.6 the fifth year.
If the symphony collects $5 million by March 31, 2013, management said it will remove the escape clause from the contract.
“The board [of directors] has indicated a steep commitment to step up and find tens of millions of dollars to support
the cost of operations over the course of the five years encompassed by the latest offer," board Chairman John Thornburgh
said in a prepared statement. "But it only felt comfortable committing to the full extent of it if it could secure an
initial showing of support from the community that they were willing to partner with the symphony.
“We all know the symphony is there. We only seek to harness that passion and ensure at least an initial showing of
dollars will be there, too.”
The musicians' union is worried management will exercise the out clause, regardless of fundraising results, to terminate
the contract before restoring pay to the proposed year-five level, lead negotiator Richard Graef said last week. Starting
pay at year three would be $60,000.
Management locked out musicians on Sept. 8, saying the organization could no longer afford its 2009 contract, which expired
Sept. 2.
The group has canceled five shows so far this season because of the work stoppage.
Stock market-induced financial woes—encountered at orchestras throughout the U.S.—have pressed the group into
significant cutbacks and business model restructuring after the investment-based endowment shriveled from a peak of $120 million.
Management has repeatedly pointed to a struggling endowment, which stood at $80 million at the end of its previous fiscal
year on Aug. 31.
A year earlier, the fund was $89 million. After accounting for stock gains, the ISO drew down about 13 percent of its balance,
exceeding the 5 percent spending rate experts generally believe is sustainable.
Orchestra expenses represented about 45 percent of the roughly $26 million ISO spent in fiscal 2011. Concert production was
another 19 percent.
The musicians argue that cutting into the orchestra’s core product would chase off talent and ultimately ruin the ISO.
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RKW's comments read like a modern "Chicken Little". As a Raintree resident for many years, "Yes, I'm ready for this." Matter of fact, I welcome The Farm because it's a development that compliments our town, brings new and desirable shopping & dining closer (specialty grocer, upscale shops, micro brew pub, etc), offers upscale condos for empty nesters who want to stay in Zionsville, is being planned and constructed by local, well-reputed firms and, of course, provides desirable non property tax benefits. We all knew the Pittman's were going to develop their property sooner than later. That one of the Pittman's will continue to live on the property helps assure The Farm will be everything promised. This also sets a standard for other developers as to the quality of future developments - which should keep an ugly Walmart at bay for decades. As we've no meglomaniac mayor, I seriously doubt Zionsville would ever aspire to over-priced statues or subsidized retail rents. And we already have a very nice public theater, the Zionsville Performing Arts Center, that meets our cultural needs quite nicely.
Do we add (or subtract) these from the bounty we recieve from RTWFL, Daylight Savings Time, corporate tax giveaways, and the crack job IEDC is doing?? Or is Mike going to blame these on Mitch?
Who makes Tater Tots? They would be a good sponsor, because $3 Million for the alleged "Greatest Spectacle In Racing" is taters. Tiny, tiny taters. But at least they are making up something of the losses accumulated over the years in this dying sport. Buttock in seat is certainly not doing it, nor eyeball on TV, as evidenced by the lack of both.
We loved lakehouse and think the Arbor Village would be a great location. It is less than 2 miles from over 1000 rooftops in the 225,000 to over 1 million range. Many people could use the great fishers trail system to bike or walk there. Just an idea Scotty -- but maybe something closer to 3 Wiseman would good. The only microbrew in area is Ram (boring)
True, it's an ESPN production, but ESPN is just another name for ABC Sports, or what used to be ABC Sports since ABC Sports no longer exists as a name. ESPN=ABC Sports= ESPN. ESPN is, according to Forbes "the world's most valuable media property" worth $40 billion. Despite that, they fired 400 people this week.