ASO Management & Musicians Unable to Reach Agreement; 2014-2015 Season Cancelled?

Despite months of Collective Bargaining Agreement (CBA) discussions, the Atlanta Symphony Orchestra Players Association and Orchestra management have not reached an agreement on a new contract. As a result, the contract with the musicians' union has expired, effective 12:00 midnight on Saturday, September 6, 2014. This development may delay or cancel portions of the scheduled 2014-15 season, which is set to open on Thursday, September 25, 2014.

Progress has been very slow, despite eight months of negotiations and ongoing transparency regarding the organization's finances.

"We are all extremely disappointed that we do not have a new contract," said Atlanta Symphony Orchestra (ASO) President Stanley E. Romanstein, Ph.D. "While we value the art and the artists of the ASO enormously, we believe we must develop a new model that will allow us to balance our artistic and financial needs. Clearly, that is not the model we have today."

The ASO has had 12 consecutive years of deficit operations. In the recently completed 2013 - 2014 fiscal year, it had a $2 million deficit, even with a significant contribution from ASO Presents, the concert promotional arm of the ASO. Accumulated debt is approximately $5 million. The ASO endowment has declined to about $70 million today as the Orchestra has taken additional distributions of $18 million to cover its accumulated deficits.

The organization's financial woes would be even more pronounced if it wasn't a division of the Woodruff Arts Center (WAC). Conservatively, the WAC provides about $3.7 million in annual support by absorbing unallocated expenses and contributing to support the art. The ASO is one division of the Woodruff Arts Center which also includes the Alliance Theatre, Arts for Learning and the High Museum of Art.

"The Atlanta Symphony Orchestra's donor base has been very generous, especially considering the long-term financial trends of the ASO," said Woodruff Arts Center President and CEO Virginia Hepner. "But, these donors have told us that we must balance our budget in order to expect continued support. It's really critical that we find a contemporary operating model for the ASO."

In its most recent proposal, ASO Management offered to increase musician salaries by 4.5 percent over the life of a four-year contract plus a share (22%) of any budget surpluses. The proposal called for musicians to shoulder more of the costs for health care, in line with what ASO staff pays for its health care costs. Management has also proposed flexibility in determining how and when vacancies on the orchestra are filled in order to balance the artistic and financial needs of the orchestra.

Since the last contract was signed in 2012, expenses have declined but sales for the classical season have declined more dramatically as cost-conscious consumers favored single-ticket purchases over season subscriptions. This trend also put downward pressure on sponsorships.

ASO staff responded to these challenges by offering new purchase options, such as "build your own season," and new formats like "First Fridays," which are aimed to keep commuters in town after work with earlier concerts. In addition, ASO Presents, the concert promotional unit of the ASO, has dramatically increased the number of popular music concerts it produces in Symphony Hall, adding to ASO revenues. These adjustments have made a positive impact, but have not been enough to close the annual operating gap.

"We are pleased with some of the progress we have made over the last two years and we are grateful for the significant role the musicians played in helping reduce our costs. But we still have work to do to reverse the financial deficits that have been experienced for the past years," said Atlanta Symphony Orchestra Board Chairman Karole Lloyd. "I remain firm in the belief that by working together - board, musicians, staff, and community - we will eventually achieve our goal: a vibrant, financially stable, world class Atlanta Symphony Orchestra which will serve this community for generations to come."

"We are all musicians or music enthusiasts at the Atlanta Symphony, and we are all striving for the same thing - a thriving classical music community that will flourish for decades to come," said Dr. Romanstein. "We hope we can return music to the stage very soon."

For more information about the Orchestra's financials and negotiations, visit: atlantasymphony.org/2014musiciantalks. Information regarding concerts, refunds, fundraising activities and Orchestra programming is available at atlantasymphony.org.

The Atlanta Symphony Orchestra, preparing to enter its 70th season, consistently affirms its position as one of America's leading Orchestras by performing great music, presenting great artists, nurturing young talent, and engaging with its community.

To post a comment, you must register and login.