ASO, Musician's Union Seek New Collective Bargaining Agreement

The management and musician’s union at the Atlanta Symphony Orchestra (ASO) are in talks for a new collective bargaining agreement which management hopes will help close the orchestra’s “unsustainable” budget deficits, but may also cut the number of musicians at the orchestra.

A 2012 collective bargaining agreement between management and the Atlanta Symphony Orchestra Players’ Association expired at midnight on Sept. 6, meaning that musicians are no longer being paid. Musicians’ health coverage will continue until the end of September, but if no new agreement is reached by then, ASO will offer COBRA care to the musicians.

The crux of the new bargaining agreement is the need to balance the quality and prestige of the orchestra with the need to reduce a multi-million dollar budget deficit which management claims is due to an old, unsustainable operating model.

The Atlanta Symphony Orchestra is running at a $2 million deficit each year, the organization reports. The 2012 collective bargaining agreement was designed to help stem the loss of cash and saw musicians accept a 14 percent pay cut in exchange for management promises to find new revenue streams.

Since 2012, management has enacted new fundraising programs and cut $400,000 in expenses. The orchestra now performs 30 ASO Presents shows a year, which has added to the organization’s income. However, management says that overall revenues continue to decline and keep the orchestra in the red.

“For the last 12 years, the ASO has operated each year with significant operating deficits, with costs outstripping revenues,” management said on the ASO website. “That is an unsustainable trend.”

Georgia’s lack of arts funding has not helped the ASO’s deficits, either. Figures provided the National Assembly of State Arts Agencies reveal that the state only provides around six cents per capita to pay for the arts, well below the national average of 87 cents per capita. This is the lowest amount that any state in the country contributes to fund the arts.

To solve the revenue shortfalls, management has proposed a new four-year contract which will see musicians earn a 4.5 percent raise and be given 22 percent of any future revenue surpluses, but pay much more for their health insurance. Musicians’ portions of their health care costs would increase from 7.5 to 17 percent, while families of musicians would see an increase from 2.5 to 23 percent.

“We are asking musicians to pay for their health benefits at the same rate as other employees of the Atlanta Symphony Orchestra,” management said on the ASO website. “This is a significant change, but all workers across the U.S. in all organizations are being asked to contribute more as health care costs continue to skyrocket in general.”

In addition, ASO management seeks a flexible number of musicians, as opposed to the contractually-obligated 88 musicians specified in the 2012 agreement. Management believes this flexibility will give the orchestra financial freedom to expand when economic conditions allow, but also to contract when economic hardships present themselves. Critics of this proposal claim the reduction of salaried musicians will end the ASO’s reputation as a global artistic force and reduce it to a regional institution.

The players’ association has produced a counter-proposal for a five year contract which would grant musicians a 15 percent pay increase. The proposal offers to offset health care costs by requiring musicians to pay $20 a week for their coverage, regardless of how much or how little they have. This weekly rate would not change through the life of the contract.

Further proposals by the players’ association include a contractually-fixed number of 90 salaried musicians in the orchestra at all times, and two more weeks of performances added to the schedule by the end of their proposed contract.

Four representatives from ASO management and eight representatives from the ASO Players’ Association are at the bargaining table working on a new contract. Both sides have legal representation present, as well.