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On December 4th, the musicians’ negotiating team suggested to the JSA that both parties submit to arbitration. The board and management declined.
According to Merriam-Webster’s Online Dictionary, a lockout is:
“the withholding of employment by an employer and the whole or partial closing of the business establishment in order to gain concessions from or resist demands of employees”
IMPORTANT FACTS RELATED TO THE JACKSONVILLE SYMPHONY ASSOCIATION (JSA) NEGOTIATIONS WITH THE MUSICIANS’ UNION
(Fact Sheet Published by James Van Vleck on www.jaxsymphony.org November 29, 2007)
(Rebuttals, in red italics, are by the musicians.)
FACT: JSA has accumulated an approximate $3,000,000 deficit since 2000. This must be paid off at some point but is not part of these negotiations.
The JSA has made the deficit the number one issue not only to the musicians, but especially to our donors, subscribers, and the press (First Coast News Dec. 1, 2007). The JSA has a $14,427,228 endowment. Assets grew $2.57M over the last year alone, to a grand total of $16,751,891. On the other hand, $3M is the sum total of liabilities accumulated since 1949. Clearly assets are growing faster than liabilities, although one might well ask what management has been doing since 2000. (All numbers in italics are derived from the JSA’s audited financial statements).
FACT: JSA has experienced operating deficits in eight of the last ten years.
The JSA has experienced an operating deficit every year on record. Without ever raiding the corpus, a percentage of the endowment is transferred to eliminate or reduce the deficit each year. Transfer percentages are at management’s discretion. As can be seen below, had they consistently transferred 7% from 2001-2007, they would have had an additional $1,415,968 available for operations.
| Year: | Actual Transfers: | Hypothetical Transfers: | Additional Funds Available: | |
|---|---|---|---|---|
| 2001: | 800,000 = 7.0% | 800,000 = 7.0% | 800,000 − 800,000 = | 0 |
| 2002: | 587,211 = 5.3% | 775,847 = 7.0% | 775,847 − 587,211 = | 188,636 |
| 2003: | 517,000 = 4.4% | 821,699 = 7.0% | 821,699 − 517,000 = | 304,699 |
| 2004: | 880,000 = 7.2% | 847,537 = 7.0% | 880,000 − 887,803 = | -7,803 |
| 2005: | 600,000 = 4.7% | 887,803 = 7.0% | 887,803 − 600,000 = | 287,803 |
| 2006: | 625,000 = 4.8% | 907,728 = 7.0% | 907,728 − 625,000 = | 282,728 |
| 2007: | 650,000 = 4.5% | 1,009,905 = 7.0% | 1,009,905 − 650,000 = | 359,905 |
| 1,415,968 |
FACT: JSA operating deficit for the fiscal year ended June 30, 2007 was $641,000.
Yes, it was the second smallest operating deficit of the last eleven years. 2005 was the smallest at $487,641.
FACT: On April 17, 2007, the Board of Directors of the Association unanimously passed a resolution stating, “Further deficits cannot be tolerated.” The Association is faced with a clear issue of survival and sustainability.
Curious, considering the deficits of 2007 and 2005 were the smallest since 1996. Even more curious, considering there have been deficits every year on record. This seems to have been sustained thus far.
FACT: Based on the current Union contract, operating deficits are projected to total $1,600,000 during the next five years.
This is true only if we maintain the status quo and continue to leave untapped many resources in the community. A grand total of $358,800 more was raised in 2006 than in 2001. Board chair, Jim Van Vleck calls the JSA fundraising “aggressive.”
FACT: JSA is faced with the possible loss of $1,400,000 or more in the City and State funding over the next five years as a result of recent real estate tax legislation.
The JSA will lose $100,000 out of $450,000 grants in each of the next two years. What happens after that is unknown. To quote JSO executive director Alan Hopper, “I have started working on a budget that assumes the worst case, which is zero dollars, but in our case the money we receive... is between 5 and 6% of our total budget. The positive thing of all this is that that money is still in the community. It’s not like the 67 million dollars is not going to flow into Jacksonville, it’s here. It’s at the discretion of the members of the community to invest that in the community in ways that they see fit or invest it in their own needs. So it presents a different type of challenge. It’s not like a huge repression that goes through some cities and the money is not there. In our case it’s a little different. It’s still a challenge, but I like to look at the positive side of what we have to do.” (EU Jacksonville June 21-27, 2007)
FACT: Based on current realities, including a loss in City funding, JSA has carefully prepared a five-year plan to establish future fiscal stability.
Rather than planning an endowment drive, the JSA plan is a five-year contract to reduce musician expenses while jeopardizing the artistic bottom line.
FACT: JSA proposed a five-year contract calling for approximately $700,000 in concessions from the musicians over the term of the contract (approximately 4%).
Yes, that’s only $140,000 a year. For an organization with an $8.2M budget, $16M in assets and an “aggressive” fundraising campaign, in a city where personal income grew 36% from 2001-2006, that is a modest fundraising goal. For musicians who stand to lose $61,022 each in pension payouts over the course of their retirements, that is a huge sacrifice.
FACT: JSA has committed to raise approximately $700,000 of “over-and-above” normal contributed income to match musician concessions. Budgeted “contributed income” will total over $18 million during the next five years...a 28% increase over the past five years.
Contributed income declined $578,011 from 2005-2006. It declined another $250,960 from 2006-2007. We applaud the JSA’s renewed efforts to raise funds, but remain perplexed why concessions are necessary.
FACT: Since August 31, 2007, the Association has been operating on the expired contract that will result in a projected half-million dollar loss this year and exhaust the JSA’s current line of bank credit.
This is true only if we maintain the status quo and continue to leave untapped many resources in the community. A grand total of $358,800 more was raised in 2006 than in 2001. Board chair, Jim Van Vleck calls the JSA fundraising “aggressive.”
FACT: Since September, the JSA has been able to get the Union negotiating team to meet 13 times. The Association had requested ten additional negotiating dates that were rejected by the Union.
The members of the musicians’ Negotiating Committee have been prepared to meet since the spring of 2006 after the Association approached us to seek an early settlement. During the 2006-07 season, we were prepared to meet the Association on 83 days, but they kept delaying. When they finally agreed to meet, they did not keep their promise to present a proposal containing both working condition and financial proposals. Thereafter their Board president resigned. They were well aware that our committee was unavailable to meet in the summer. It was not until the current season, a full season after approaching us, that they finally presented their first financial proposal. When they proposed dates that conflicted with our work schedules, we regretted that poor planning on their part did not constitute an emergency on ours. They proposed meeting on days when we had concerts, placing undue stress on us. They presented their lockout ultimatum a couple of hours prior to our final Beethoven 9th performance.
FACT: On October 10, 2007 the Union voted to authorize a strike against the Association
“in the event that the Committee would deem it necessary.” To date, no such action has been taken, though the members have been locked out by the JSA.
FACT: On November 9 the JSA notified the Union that it was placing its “best and final” offer on the table and if it was rejected, the JSA would be forced to suspend operations.
Forced to suspend? In fact, they made a choice to lock out the musicians.
FACT: Prior to the Association’s final proposal the JSA invited the Union to rearrange the concessions in ways they found most acceptable as long as the total dollar amount of concessions was maintained.
It is true that the JSA allowed us to decide whose benefits to slash the most. What is unsaid is that maintaining the concessions at the same level the entire time does not amount to bargaining in good faith. Good faith bargaining involves give and take. The musicians find the idea of choosing which of their colleagues should suffer most unpalatable.
FACT: On November 12, the Union declined to make any concessions and instead proposed a contract that would add at least $900,000 over the term of a five-year contract.
Assets of the JSA have grown steadily over the last six years ($2.57M in the last year alone) and they are planning an “aggressive” fundraising campaign.
FACT: Key economic considerations of the final proposal that was rejected included:
• Maintain the full-time musicians’ current minimum salary for the first two years. Salary increases in the 3rd,
4th and 5th years provide a cumulative growth of 7.7%. (Current average salary is $43,660)
Factoring in inflation, pension reductions, etc., there is significant loss over the period of the contract. 63% of full time musicians earn $38,036.
• Pension reduced from 7% to 3% through term of contract.
Each musician would lose $61,022 in pension payouts over a 20 year retirement. In order to recoup that loss, we would need to earn an additional $1,000/month for each of the five years of the contract.
• A health care plan that reduces the cost to Musicians as well as expenses to the Association.
Yes, the musicians have indicated a willingness to accept the new plan, which would save the JSA huge sums of money.
FACT: The Association has proposed changes in the contract that would allow for better control of costs, the ability to schedule the orchestra for maximum revenue generation and to provide opportunities which aid the Association to better serve its community through education and outreach.
Children working in factories allow for maximum revenue generation too. Musicians are artists — not machines. Making revenue the primary concern regarding working conditions will affect the product.
FACT: The Association has offered and is willing to explore different scenarios to proportionately distribute the concessions.
The musicians find the idea of choosing which of their colleagues should suffer most unpalatable.
FACT: An endowment campaign that would raise at least $10 million is the single most important long-term effort the JSA can make to achieve fiscal stability.
Yes. Why did the JSA cancel the endowment drive when glossy campaign plans entitled “Building America’s Next Great Orchestra” had been unveiled in Sept. 2006?
FACT: Major potential endowment donors have confirmed that fiscal stability (break-even annual results) is a necessary precursor to an endowment campaign.
The JSA has a responsibility to educate donors about the financial structure of a symphony orchestra. Other orchestras, notably those of Boston, Buffalo, Indianapolis, St. Louis and Cleveland, have started endowment campaigns while they had deficits. In some cases, they found creative ways (board involvement or special mini-campaigns) to balance the books while they were getting off the ground. Jacksonville is unique in requesting that musicians sacrifice their pensions for this purpose.
FACT: The proposed five-year contract with musicians is essential to give the JSA the opportunity to achieve fiscal stability over the next five years and establish the financial base for a successful endowment campaign.
When the musicians accepted a concessionary contract five years ago, we were told it was “essential in order to give the JSA the opportunity to achieve fiscal stability over the next five years.”
FACT: Even with approval of the contract we will need the effort and collaboration of all stakeholders if the community is to continue to enjoy a symphony orchestra in Jacksonville. The proposed five-year plan requires a high level of successful implementation to meet expectations.
Yes, remember that contributed income declined $578,011 from 2005-2006. It declined another $250,960 from 2006-2007. Personal income in Jacksonville grew 36% from 2001-2006. Clearly the JSA fundraisers have everything under control.
FACT: Greater levels of trust and respect between Board, Management, and Musicians must be achieved in a successful future. More dialogue and collaboration is essential and will be a priority effort!
Management has locked out the musicians. The board chair stated publicly that our jobs are “not too onerous.” Is this their best effort at fostering greater trust and respect?
See the next section for A FEW MORE FACTS:
(those closest to Jacksonville in wages, length of season, and budget)
• In spite of the League’s rhetoric about “troubled orchestras,” the only concessionary contract agreed on in the country this year has been in Detroit, although it should be noted that significant gains are made by the end of that agreement.
• The only work stoppage of any kind has been in Jacksonville.
• Orchestras in Group 2 have made remarkable gains this year, including Kansas City (from $39,354 to $48,703), North Carolina (from $47,236 to $59,400), and Nashville (from $42,183 to $60,000).
• Jacksonville has dropped to 14th in Group 2 and 42nd overall in salary level (American orchestras) since our concessions in 2001.
• The Indianapolis metropolitan area is 58% larger than the Jacksonville Metropolitan area, yet manages to support a budget 321% larger than ours.
• The Rochester metropolitan area is 7% smaller than Jacksonville’s, and their budget is 9% larger than ours.
• Buffalo’s metropolitan area is nearly identical in size to ours but their budget is 20% larger than ours.
| Orchestra | *Salary | Weeks | # of Musicians | Budget | Pension | Final Year |
|---|---|---|---|---|---|---|
| Nashville | $60,000 | 43 | 81 | 12.9 | 6% | 11/12 |
| North Carolina | $59,400 | 41 | 65 | 11.8 | 9% | 10/11 |
| Ft. Worth | $58,755 | 52 | 73 | n/a | 5.25% | 09/10 |
| Columbus | $55,200 | 46 | 31 | 12 | 8.5% | 07/08 |
| Kansas City | $48,703 | 42 | 80 | 10.3 | 5% | 10/11 |
| Colorado | $47,072 | 43 | 79 | 12 | 3% | 08/09 |
| Phoenix | $46,706 | 40 | 76 | 10 | 4.25% | 10/11 |
| San Diego | $46,412 | 41 | 79 | 16 | 3% | 10/11 |
| Oregon | $42,700 | 41 | 76 | 15 | 8.5% | 07/08 |
| Buffalo | $42,226 | 39 | 73 | 10 | 8% | 08/09 |
| New Jersey | $41,360 | 32 | 67 | 13.8 | 10% | 07/08 |
| Charlotte | $39,900 | 40 | 62 | 8 | 8% | 09/10 |
| Rochester | $38,610 | 39 | 57 | 9 | 5% | 07/08 |
| Jacksonville | $38,036 | 37 | 52 | 8.2 | 7% | 06/07 |
| Honolulu | $34,500 | 34 | 64 | 6.2 | 8% | 07/08 |
| Alabama | $34,494 | 41 | 54 | 6 | 5% | 07/08 |
| Louisville | $34,225 | 37 | 71 | 6.8 | 5.5% | 10/11 |
| San Antonio | $31,350 | 30 | n/a | 6.2 | 4.25% | 10/11 |
| Syracuse | $30,282 | 39 | 81 | 5.6 | n/a | 08/09 |
| Florida | $29,750 | 34 | 80 | n/a | 6% | 06/07 |
| Virginia | $24,753 | 40 | 86 | 5.9 | 6% | 09/10 |
For our 52 core orchestra members, the Jacksonville Symphony Orchestra is a full-time job with a season of 37 weeks (during the remaining 15 weeks we are unemployed). The orchestra’s management schedules rehearsals and performances six days a week, with Monday usually being our day off. We spend many hours a week maintaining and advancing our skills on our instruments and preparing all of the music we need to learn for the well over a hundred concerts we perform each season. Most of us supplement our income with teaching and other performing, which we squeeze in around the orchestra’s irregular work schedule.
(On a side note, we would love to be employed for more weeks per year— many orchestras in the United States have 52-week seasons!)
The Jacksonville Symphony musicians donate Public Radio broadcasts of 16 concerts every season. In many orchestras the musicians are paid extra when their concerts are broadcast.
41 orchestras in the United States pay a higher salary to their musicians than the Jacksonville Symphony, many of them significantly more.
Musicians have costs to own and maintain their instruments. Parts need to be replaced, such as strings on a violin, and some instruments need to be regularly replaced. (Our principal oboist purchases a new oboe every year.) We are often looking for ways to upgrade our instruments but cost is prohibitive and many of us carry loans as a result of buying better instruments.
Playing an instrument for as may hours a day as we do is very demanding physically. We are athletes who make great demands on our muscles. Many of us are experiencing at any time, or have experienced in the past, physical injuries from our work. There is even a specialized field of medicine devoted to musicians’ injuries!
As a point of reference, a 1st year Duval County schoolteacher with a Master’s degree earns the same amount as our current base salary, $38,000. But a teacher with 16 years in the Duval County school system and a Master’s degree earns $46,316 while a JSO musician who has worked for the Jacksonville Symphony for 16 years and has a Master’s degree still only earns $38,000. (Most of us have Master’s degrees.)
We come from 18 states and 12 countries — Brazil, Canada, Cuba, Honduras, Japan, Korea, Moldova, Poland, Romania, Russia, Taiwan, and the United States.
Our average length of service with the Jacksonville Symphony is 16 years.
We teach music lessons to hundreds of students, ranging in age from 5 to 80!
We teach at the following schools:
The average value of a Jacksonville Symphony musician’s instruments is $41,000.
We have 53 children (plus one on the way).