SYMPHONIC SERVICES DIVISION

TWINCITIESM

USICIAN

SUNION, LO

CAL30‐73 AFM

MUSICIAN

SOFTHESAIN

TPAU

LCHAM

BERORCHESTRA

MUSICIAN

SOFTHESAIN

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BERORCHESTRA

PRESENTATIONTO THE

MANAGEMENT AND MUSICIANSOF THE

SAINT PAUL CHAMBER ORCHESTRA SOCIETY

PREPARED BYJOEL LeFEVRE, COORDINATORSYMPHONIC SERVICES DIVISION

AMERICAN FEDERATION OF MUSICIANSMELVIN S. SCHWARZWALD, LEGAL COUNSEL

SAINT PAUL ORCHESTRA NEGOTIATING COMMITTEE

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TEN‐YEAR COMPARISONOF SPCO MINIMUM SALARY

AND PENSION CONTRIBUTIONSTO OTHER REGIONAL AND CHAMBER ORCHESTRAS AND TO ALL ICSOM 

ORCHESTRAS

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SPCO MinnOpera

Minn.Orch.

Milwaukee Symphony

Kansas City Sym.

St LouisSymph.

Orpheus LAChamber

ICSOM

2002‐03 $66,940 $134  $   88,660  $   53,625  $ 35,849  $  68,730  $  158  $1,276 

2003‐04 $56,560 $142  $    91,319  $  55,650  $ 38,204  $  72,010  $   166  $ 1,296 

2004‐05 $58,051 $150  $   87,412  $   58,265  $ 38,204  $  73,900  $   175  $1,323 

2005‐06 $60,950 $153  $   88,348  $   53,625  $  38,587  $  74,000  $   183  $ 1,361 

2006‐07 $63,950 $158  $   90,168  $   54,990  $  39,359  $  75,000  $   272  $   191  $ 1,434 

2007‐08 $69,500 $164  $  96,902  $   57,330  $ 41,538  $  76,000  $  286  $   199  $ 1,497 

2008‐09 $71,585 $168  $  100,906  $   60,000  $  43,614  $  76,760  $   300  $   209  $ 1,539 

2009‐10 $65,107 $168  $  102,024  $   54,600  $  43,614  $  77,530  $   307  $   219  $ 1,547 

2010‐11 $67,336 $168  $  105,534  $   55,185  $  44,704  $  79,291  $   320  $   219  $ 1,598 

2011‐12 $73,732 $168  $  112,034 $   58,500  $ 47,124 $   80,679 $   334 $   223 

Data is from the AFM‐Symphonic Services Division ‐ ICSOM and ROPA Wage Charts

Minimum Annual Salaries & Service Rates 2002‐2012

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SPCO Wages  Minneapolis andSaint Paul CPI –U  †

National CPI –U  †

2002‐03 $66,940 179.6 181

2003‐04 $56,560 182.76 185

2004‐05 $58,051 187.9 190.9

2005‐06 $60,950 193.1 199.2

2006‐07 $63,950 196.5  201.8

2007‐08 $69,500 201.247  208.936

2008‐09 $71,585 208.958 216.537

2009‐10 $65,107 207.889  216.177

2010‐11 $67,336 211.728 218.711

2011‐12 $73,732 217.374 226.421

SPCO Salary,  Consumer Price Index  2002‐2012

†

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BERORCHESTRA

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To calculate the percentage increase take the difference between the first and last number in a column. Then divide by the first number then multiply by 100. 

Minn – St Paul CPI‐U National CPI ‐U2002 179.6 181.02012 217.374 226.421Change in index points 37.74 45.41

Percent change 179.6/217.374 x 100 =21.03%

181.0/226.421 x 100 = 25.08%

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MUSICIAN

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LCHAM

BERORCHESTRA

Minimum Annual Salary Improvements10 years 2002 to 2012

10.63%

30.6%

26.36%

9.1%

31.5%

17.4%

22.8%

41.0%

32.6%

* figure is last          6 years only

∫

Performance rate∫

∫∫

NationalCPI † 25.08%

21.03%MNSt.PaulCPI†

† 7

Pension Contribution Improvements2002 compared to 2012

‐1.0%

2.0%

‐2.0%

0.0%0.5%

1.0%

5.0%

2.0%

‐3%

‐2%

‐1%

0%

1%

2%

3%

4%

5%

6%

Pension 10 Years

‐2%2%‐1%

0% .5% 1%

5% 2%

MUSICIAN

SOFTHESAIN

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LCHAM

BERORCHESTRA

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Annual Salary Plus Pension ContributionImprovements ‐ 10 years 2002 to 2012

9.63%

32.6%

24.36%

9.1%

32%

18.4%

27.8%

43%

32.6%

*includes only6 years wages

** wages only

∫∫ ∫

** 

Performance rate∫

MUSICIAN

SOFTHESAIN

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LCHAM

BERORCHESTRA

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Year SPCO Weekly Scale  ICSOM Weekly Scale

2001‐02 $         1,650 $           1,244 

2002‐03 $         1,730 $           1,276

2003‐04 $        1,429 $           1,296

2004‐05 $         1,563 $           1,323

2005‐06 $         1,562 $           1,361 

2006‐07 $         1,610 $           1,434 

2007‐08 $         1,572 $           1,497 

2008‐09 $         1,619 $           1,539 

2009‐10 $         1,619 $           1,547 

2010‐11 $         1,772 $          1,597

SPCO and ICSOM Average Weekly Scale

‐ figures include summer pay ‐

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SPCO & ICSOM Weekly Scale Comparison

1,650 1,730 

1,429 

1,563  1,562 1,610 

1,572 1,619  1,619 

1,772 

$1,244  $1,276  $1,296  $1,323 $1,361 

$1,434 $1,497 

$1,539  $1,547 $1,598 

 500

 700

 900

 1,100

 1,300

 1,500

 1,700

 1,900 32.6% 10.9%

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10.63%

21.03%

* figure is  6          years only

MinneapolisSaint Paul Area  CPI

2002 ‐2012

10.4% ‐ 10 year loss against local inflation

† 12

10.63%

32.60%

25.08%

* figure is  6          years only

USA  Urban Consumers

CPI

2002 ‐2012

14.05% ‐ 10 year loss against US inflation

21.97% ‐ 10 year loss against ICSOM average

† 13

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SPCO SOCIETY SAVINGSFROM

REDUCTIONS INSALARIES OF MUSICIANSOVER TEN‐YEAR PERIOD

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SPCO actual Contract Rate Salary Reduction Per Musician

#  Core Musicians

# Paid  Weeks*

2002‐03 $66,940 $66,940 33 38

2003‐04 $56,560 $66,940 $    10,380  35 32

2004‐05 $58,051 $66,940 $    8,889  35 32

2005‐06 $60,950 $66,940 $      5,990  35 33

2006‐07 $63,950 $66,940 $      2,990  33 34

2007‐08 $69,500 $69,500 ‐ 31 40

2008‐09 $71,585 $71,585 ‐ 31 40

2009‐10 $65,107 $73,732 $        8,625  32.5 36

2010‐11 $67,336 $75,994 $          8,608  32 38

2011‐12 $73,732 $78,223 $          4,491  32 37

*includes  vacation weeks

SPCO Society Salary,  Number of Musicians and Paid Weeks  M

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Year Reduction/Musician

Reduction  All Musicians

Overscale* Pension PayrollTaxes

2002‐03

2003‐04 $    10,380  $         363,300  $  41,878 $  40,518  $  30,996 

2004‐05 $    8,889  $  311,115  $  54,050 $  36,517  $   27,935 

2005‐06 $      5,990  $         209,650  ‐ $  20,965  $  16,038 

2006‐07 $      2,990  $         110,630  ‐ $      9,867  $      8,463 

2007‐08 ‐ ‐

2008‐09 ‐ ‐

2009‐10 $        8,625  $  280,313  $    53,608 $    39,252  $      25,545 

2010‐11 $        8,608  $  275,456  $    22,712 $   37,897  $      22,810 

2011‐12 $        4,491  $  143,712  $   15,665  $      10,994 

Total $        49,973  $  1,694,176  $  172,248  $ 200,680  $     142,781 

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Total Value of Concessions $2,209,885

SPCO Society Savings   

* The figures in this column are the increases/decreases +in overscale payments from previous seasons. Some of these differences may be due to causes other than changes in the number of weeks in which overscale was paid, but the vast majority of the differences are due to changes in weeks worked as a result of concessions by the musicians.

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NATIONAL MEDIA REPORTSOF FINANCIAL STATUS

OF AMERICAN ORCHESTRAS

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Excerpts From National Magazine

As a group, the symphony orchestras of the U.S. are unsurpassed inquality by those of any other nation in the world. Yet today they are introuble – loud, unavoidable, cymbal‐crashing financial trouble.

*     *     *The Detroit Symphony, which has just emerged from a … musicians’strike, is in such economic straits that it may have to disband.

*     *     *“ … we stand a very good chance of losing at least one‐third, if not halfof our major symphony orchestras.”

*     *     *The facts are summed up in a new study prepared for the nation’s topfive orchestras – New York, Boston, Philadelphia, Cleveland and Chicago– by the management consultant firm McKinsey & Co. Becauserocketing costs – most notably, sharply increased salary scales – have notbeen met by a similar gain in income, … .

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BERORCHESTRA

Continued Excerpts From National Magazine

So large are the deficits that orchestras have been forced to dip intoendowments to survive.

*     *     *One reason for the crisis is that money for the arts is tighter than it hasbeen in years. Because of more pressing social needs, the FederalGovernment, as well as many state governments, has cut back itsspending on culture.

*     *     *As for private donors, … the same reliable philanthropists also give tomuseums, hospitals and universities, and they have just about reachedthe limit of giving.

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Continued Excerpts From National Magazine

Some critics of American orchestral life contend that the real trouble isthat the symphony has been for too long a plaything of the wealthy.Even though symphony‐going is not dominated by the rich to the extentthat it was 40 years ago, it is still a formal experience that most turned‐on youth regard as static, outmoded and irrelevant.

*     *     *The real problem is attracting the young today so that there will be anaudience tomorrow.

*     *    *“You cannot raise endowments by trying to finance the status quo.”

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The National Magazine is TIME in an article entitled 

“Music: American Orchestras: The Sound of Trouble” 

published on JUNE 13, 1969.  

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RECENT REPORTS OF REVENUE 

AND CONTRIBUTION INCREASES IN 

AMERICAN ARTS ORGANIZATIONS

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A Metropolitan Opera High Note, as Donations Hit $182 Million [Excerpts]By: Daniel J. Wakin and Kevin FlynnThe New York Times, October 10, 2011

According to preliminary figures released for the first time, the Methauled in $182 million, an astonishing amount in a tough economicclimate and 50 percent more than it raised just the year before. Andthere was other good news for the first time in seven years, the Methad balanced its budget, thanks partly to $11 million in profits last yearfrom its HD movie theater transmissions, which had been operating foronly five years.

*    *    * Donor contributions now support 43 percent of the Met’s whopping$325 million operating budget, up from 38 percent in 2005.

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The New York Times continuedOctober 10, 2011

Citing the preliminary nature of its accounting and its general policyon disclosure, the Met declined to give details on what portion of the$182 million came in as cash, versus pledges for the future. But it didsay that roughly half of it came in as cash.

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Houston Symphony News Release [Excerpts]

June 6, 2011

HOUSTON SYMPHONY ACHIEVES $8 MILLION RECORD‐BREAKING ANNUAL FUND GOAL

$1 MILLION CHALLENGE GRANT EXPECTED FROM HOUSTON ENDOWMENT

BALANCED BUDGET PROJECTED FOR FY11

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Houston Symphony News Release [Excerpts]June 6, 2011

Today, the Houston Symphony announced a series of fundraising and financialachievements that will propel the institution toward its centennial season in2013‐14. One year into a comprehensive five‐year plan, the Symphony hasqualified for the first of two $1 million challenge grants from HoustonEndowment, raised a record Annual Fund over $8 million, and is expecting abalanced fiscal year 2011 budget.

*     *     *The Houston Symphony has qualified for the first $1 million challenge grant fromHouston Endowment by surpassing its FY11 Annual Fund goal of $8 million, byexpanding its donor base beyond 4,000, and by meeting the first‐year budgetgoals of the five‐year plan. In total, over 4,200 donors participated in HoustonEndowment’s challenge by contributing more than $8 million, a record amount,to the FY 11 Annual Fund. Both of these figures represent over 30% increasesfrom the prior year during which 3,200 donors contributed $6.2 million to theFY10 Annual Fund. This successful FY11 outcome was the result of theextraordinary generosity of the Symphony’s Board of Trustees who collectively

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Houston Symphony News Release [Excerpts] continued

doubled their annual contributions. At the same time, more than1,200 donors made first‐time gifts to the Annual Fund during a“Million Reasons to Give” campaign that underscored the Symphony’simpact throughout the Greater Houston region.

*     *    *A second Houston Endowment challenge grant of $1 million will beawarded next year if the Houston Symphony is successful in meetingits bottom line FY12 financial goals, expanding its donor base to atleast 5,000 and growing its FY12 Annual Fund to at least $9 million byMay 31, 2012.

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The Charlotte Symphony hopes to raise $40 million over 10 years to solve its financial troubles. [Excerpts]By: Steven BrownThe Charlotte Observer, November 3, 2011

The Charlotte Symphony today announced $2.5 million in donations thatkick off its most ambitious attempt yet to straighten out its finances: afund drive aimed at raising $40 million over the next decade.

*     *     *Losing “three major sponsors at $200,000 a year – that’s a major drop,”said Kim Cook, a consultant with Nonprofit Finance Fund. The groupworks with organizations across the United States. The ASC [Arts &Science Council] paid for it to analyze the Charlotte Symphony.

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The Charlotte ObserverNovember 3, 2011  continued

Cutting the orchestra’s costs isn’t the solution, Cook said. The orchestraalready did that to the point of “starving” its ability to function, she said.Because of staff cuts, it “didn’t have enough of a team” to createprograms that would bring in revenue.

“It isn’t an expense issue, “Cook said. “It’s a revenue issue.”That is, the orchestra has to bring in more money.

*     *     *Other groups nationally are building their financial wherewithal, too. InTexas, the Dallas Opera on Tuesday announced the completion of a drivethat raised $20 million in two years. A $10 million challenge grant froman anonymous donor was the key. In Tennessee, the NashvilleSymphony – which already has about $72 million in its endowment – ispreparing for a campaign to raise more.

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St. Louis Symphony ticket sales, gifts, endowment grow in 2011. [Excerpts]By: Kelsey Volkman, Web Editor St. Louis Business Journal, November 21, 2011

The St. Louis Symphony continued tis financial recovery in fiscal 2011,with ticket revenue rising 1.5 percent to $6.56 million and contributedrevenue increasing nearly 8 percent to $9.16 million compared with lastyear.

At the close of fiscal 2011, the symphony’s endowment totaled $126million, up $10 million from fiscal 2010, according to new financialfigures released today.

The numbers show that the symphony’s “Building Our Business”initiative, launched in 2008, is gaining traction and producing positiveresults even in precarious economic times, President and CEO FredBronstein said.

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St. Louis Business Journal continuedNovember 21, 2011

Total ticket revenue has increased over a three‐year period by 36percent from $4.84 million to $6.56 million, the highest for all concertssince 2001. During [the] same time period, there’s been a 17 percentincrease in seats sold from 165,865 to 194,700 and a 12 percent increasein per‐concert average attendance, from 1,522 to 1,708.

Since 2008, annual contributed operating revenue has increased 18percent, and more than 22,000 new buyers have been added to thesymphony‘s audience base.

SYMPHONIC SERVICES DIVISION

TWINCITIESM

USICIAN

SUNION, LO

CAL30‐73 AFM

MUSICIAN

SOFTHESAIN

TPAU

LCHAM

BERORCHESTRA