FOR IMMEDIATE RELEASE Contact: September 22, 2012 Rachelle Roe, roer@cso.org

312-294-3090

CHICAGO SYMPHONY ORCHESTRA CONCERT ON

SEPTEMBER 22 CANCELED DUE TO STRIKE BY MUSICIANS

CSO Musicians Rejected Proposals from the

Chicago Symphony Orchestra Association and Initiate Strike

Management Offered to Continue Negotiating While Musicians Played

CHICAGO— Today, the Chicago Federation of Musicians (CFM), Local 10-208

negotiating committee representing musicians of the Chicago Symphony

Orchestra (CSO), rejected proposals from the Chicago Symphony Orchestra

Association (CSOA) for a three-year contract that would have provided musicians

with a minimum base weekly salary of $2,795 in the first year, with increases to

$2,835 and $2,910 in years two and three, respectively. The previous weekly

base minimum salary is $2,785.

The last, best and final contract offered by the Association would have made the

members of the Chicago Symphony Orchestra among the best-compensated in a

U.S. orchestra, while also maintaining benefits such as 12 weeks of paid time off

per year, a defined benefit pension plan, excellent health insurance and a

minimum size of 106 orchestra musicians. The parties are chiefly at odds over

wages and employee contributions toward health care costs.

“We regret any inconvenience the musicians’ strike causes our audiences and

patrons and assure you that the Association remains committed to reaching a fair

agreement,” said Deborah Rutter, president of the CSO Association. “Chicago

Symphony Orchestra musicians are world class professionals, and deserve every

dollar and every benefit offered in this contract. At the same time, we must

soundly manage the finances of the Association.

“The Chicago Symphony Orchestra Association is extremely disappointed that the

musicians have decided to strike. Looking around the country, it’s clear that the more

prudent path would be to work with us to ensure their future, rather than engage in this

action,” she added.

Notwithstanding management’s request to begin negotiations in the spring, the CFM did

not agree to start negotiations until July, and then only offered four half-day sessions

before demanding a recess and refusing to return to the bargaining table until

September 10. Although management was willing to meet more often, the parties have

had only seven additional sessions. When the contract expired on September 16, both

parties agreed to continue to negotiate while the musicians worked under the terms of

the expired contract.

During the union’s recently expired five-year contract, the musicians’ base minimum pay

rates increased by 23%, making the musicians’ minimum weekly base salary $2,785 or

$144,820 annually. When additional compensation—which every active Orchestra

member earns—is added in for items such as overtime and seniority, the average

annual pay for musicians is $173,000. When benefits are included, such as 12 weeks

of paid time off, paid sabbatical leaves, and a defined benefit pension plan that provides

nearly $75,000 per year pension benefit for retirees, the value of their overall package is

significant and, in most respects, at the top of their peers.

The Association proposed that musicians contribute more towards the cost of their

health care benefits, and that they agree to plan design changes to help reduce the

costs of the plan. The healthcare plan for musicians under the expired contract is far

more expensive per person than the plan provided to administrative employees at the

CSO and far above the costs generally borne by employers. At a cost to the CSOA that

averages $18,000 per musician annually, it featured low employee contributions, co-

pays and out of pocket limits. The CSOA subsidizes 95% of this cost, while the

musicians contribute just 5% towards this cost, or as little as $25 per week for family

coverage. The Association asked musicians to adopt a plan design similar to that of the

CSO’s administrative staff, and to increase their contributions. The union insisted that it

would only agree to healthcare changes if management agreed to wage increases that

would cover their increased cost.

In keeping with the economic challenges across the U.S., where many of the nation’s

orchestras have faced large deficit and even bankruptcy problems in recent years, the

Chicago Symphony Orchestra Association—through creative programming to attract

new audiences, successful marketing strategies to increase ticket sales, and

collaboration with musicians to advance key promotional opportunities—has sought to

maintain a fiscally responsible and sustainable business model based on the long-term

strategic goals of the Association. Prior to 2012, CSO staff salaries were frozen and

staff was cut in 2009 in an effort to attain reasonable cost savings without negatively

affecting programming, management and other aspects of the CSO.

“We have been taking thoughtful and innovative steps toward tangible financial,

audience and reputational gains,” commented Rutter. “Still, CSO revenues are growing

at small percentages per year, while expenses—of which musicians’ salaries and

benefits represent the largest fixed costs of the organization—are growing at a much

steeper pace. The contract that we offered and that the musicians rejected maintains

that delicate balance between how we spend and how we manage our finances, while

at the same time recognizing the preeminence of our great Orchestra. The CSOA

continues to approach these negotiations constructively, and we remain committed to

reaching a fair agreement that will ensure the long-term financial stability of our great

institution.”

Patrons holding tickets to the canceled concert on September 22 will be able to

exchange their tickets for upcoming Symphony Center performances during the

2012/13 season, may donate their tickets to the CSO, or may receive a refund. For

further information regarding ticket options, ticket holders are asked to call Symphony

Center at 312-294-3000. In addition, cso.org will have the most up-to-date information

and updates for patrons about the status of future concerts.

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