Honolulu Symphony proposes cutbacks
By Vicki Viotti
Advertiser Staff Writer
The Honolulu Symphony, facing a $1 million debt that it has been unable to clear by trimming programs, has asked its musicians to accept pay cuts or fewer orchestra performers in the 2004 season.
The Musicians Association of Hawai'i Local 677 has been told that the reductions would be matched with 20 percent pay cuts for the symphony's top officials, according to people familiar with the discussions. Conductors Samuel Wong and Matt Catingub and Stephen Bloom, the symphony president, would take pay cuts.
Neither side would confirm specific proposals yesterday, but Bloom said a group including "symphony board members" has pledged $2 million contingent on the symphony developing a "viable financial plan."
This group of major donors is said to include symphony board chairman Carolyn Berry, symphony board treasurer Michael O'Neill and Lynne Johnson, who chairs the Honolulu Symphony Foundation.
Johnson would not confirm that report, but she did say that the foundation, the symphony's fund-raising arm, would only embark on an endowment campaign once the organization "is on firm financial footing." Berry and O'Neill could not be reached for comment.
"We've been running at a deficit," she said. "We can't do that anymore and survive. And we can't expect people to invest unless we get our house in order."
1986 — Musicians go on strike demanding wage increases and a guaranteed number of weeks per performance season. The strike lasts for 15 weeks before a compromise is reached. 1990 — Musicians strike for one day over a wage dispute. 1993-1994 — Entire season is canceled when musicians reject the Honolulu Symphony Society's proposal to cut wages and/or jobs. 1994-1995 — Core musicians perform independently as the Hawaii Symphony, with an average of 62 full-time performers in contrast to their typical 80 full and part-time members. They stage 115 performances for a total of 120,000 people, but close operations in the red. 1995-1996 — The Honolulu Symphony Society and the Musicians' Union reach a collective bargaining agreement in time for a shortened, 14-week season. The orchestra will stage no more than 48 performances in any of the next three seasons, in contrast to a high of 134 performances in 1988-89. 2000-2001 — Stephen Bloom succeeds Michael Tiknis as executive director. Bloom has a reputation for turning around financially troubled symphonies in Buffalo, Sacramento and Tacoma. He quickly extends the existing contract by one year with no wage increase. 2002-2003 — Symphony Society and musicians agree to a five-year contract.
Sources say the musicians and the symphony are discussing options for spending cuts, including the option of a $6,000 annual pay cut for each musician. Alternatively, the union might opt instead to lose six positions through attrition or cut the symphony season, or choose any combination that will achieve the same end.
Honolulu Symphony labor history
The sources asked not to be named because they did not want to be accused of jeopardizing the negotiations.
Bloom said the symphony organization is planning to accelerate its endowment drive to help sustain the orchestra for the long term. The endowment holds $5.5 million, he said; symphonies in cities this size usually have endowments of at least $15 million, he said.
"We know that is one piece of the answer for long-term stability," Bloom said.
Negotiations with the musicians began earlier this month. The current five-year contract began more than one year ago, and only set pay levels through the first two years, Bloom said, compelling both sides to reopen negotiations and agree on wages, length of season and rules for performances with the Hawaii Opera Theatre.
Bloom said any changes would take effect no earlier than the 2004-2005 symphony season and would remain in force for the remainder of the contract.
In a faxed statement, Scott Janusch, chairman of the Honolulu Symphony Orchestra committee, said musicians "are weighing our alternatives."
"We have a democratic process in place, and we are following that process," Janusch said. "The committee will be presenting the options to the full symphony membership (tonight), and the musicians will vote as early as Wednesday night."
The symphony society's board of directors has a regularly scheduled meeting tomorrow night.
Johnson would not confirm that pay cuts had been proposed for management but said cutbacks will be "a sacrifice by everybody."
"I think the idea is we're all in this together," Johnson said. "Everybody has to work hard, everybody has to sacrifice, simply because the symphony is so important.
"It's important not only to the people who love it. Even if you hate classical music, there are a lot of people who move to Hawai'i because we have a symphony, so it's good for the economy. And it's good for education for our children. Our musicians not only play, but they teach."
Bloom said the symphony had a "balanced" budget in 2000-2001, and operated at a small deficit in the 2001-2002 season, in part because of the aftermath of the 9-11 attacks. The deficit increased further in 2002-2003.
However, the symphony has continued to carry debt. Since 2000-2001, the symphony has reduced its running debt from $1.8 million to about $1 million, in part by eliminating money-draining programs such as the Starlight and Ohana concert series, but has not been able to clear all of its debt.
Johnson said all deficit spending will have to end if the foundation expects to meet its minimal goal of doubling the endowment.
The projected operating budget for the 2003-2004 season was calculated at $6.4 million, a figure that includes salary increases promised to the musicians when they agreed to a wage freeze in 2000, Bloom said.
Base pay for symphony musicians is $880 week for 34 weeks, or $29,920 annually, Bloom said.
Symphony money comes from a variety of sources. Ticket sales cover roughly 40 percent of annual operating expenses. The Honolulu Symphony changed its performance schedule last year to Fridays and Sundays, instead of Tuesdays and Sundays, but Bloom said the change did not significantly affect ticket revenues.
The Symphony Foundation, which administers the endowment, makes annual allocations based on the previous 20 quarters of investment performance. The rest of the operating revenue comes from donations and a small amount of government money.
Like other symphonies across the country, the Honolulu Symphony found many of its critical fund-raising efforts hurt by the events of 9-11 and fluctuations in the stock market.
"Corporate giving and foundation giving are down," Bloom said. "But at least we're surviving and things are improving. It could be worse."
Bloom cited the disbanding of symphonies in San Jose and San Antonio as evidence that arts and culture organizations nationwide are in a precarious situation. Even major companies such as the Chicago Symphony Orchestra have been operating with onerous budget deficits, Bloom said.
"Everybody has been struggling across the board," he said.
Reach Vicki Viotti at vviotti@honoluluadvertiser.com or 525-8053. Michael Tsai contributed to this report. Reach him at mtsai@honoluluadvertiser.com or 535-2461.
