Management and musicians with the Honolulu Symphony yesterday announced a new collective bargaining agreement that will result in a 12.5 percent pay increase over three years.

The contract covers 63 musicians represented by Local 677 of the American Federation of Musicians.

Honolulu Symphony executive director Tom Gulick said the three-year contract, reached after 10 days of "cordial" negotiations, is another sign the organization is climbing out of financial difficulties.

"We're off the critical list but we're still in intensive care, and it will take another year to two to stabilize," Gulick said. "We feel we're in a stronger position going into this season but we still have a lot of work to do."

The 34-week symphony season runs September to May. Symphony musicians were in rehearsal yesterday and not available for comment.

Local 677 President Brien Matson said in a statement, "We appreciate the support of the orchestra musicians throughout the negotiations, and the good faith of management's negotiating team. We are looking forward to three years of successful music-making to come."

Last season, musicians went without pay for 10 weeks as the symphony struggled with declining revenue. Gulick said the organization made good on the back pay and has met its payroll so far this season.

Under the new agreement, musician base salaries now set at $34,100 will not change for the current season, which started last week. By the time the contract expires in September 2011, the base salary will have increased to more than $40,000, according to the announcement.

The agreement was approved Sept. 5 by the musicians union and the symphony's board of directors.

RAISING MONEY

The Honolulu Symphony suffered last year when it was displaced from the Blaisdell Concert Hall by a tour of "The Lion King" from September to December. The symphony played at smaller and sometimes more expensive venues, and lost at least $500,000 in ticket sales.

Gulick said that since those dark days, "some good things have happened."

Fundraising collected $4 million, up from $2.2 million the previous year. Donations included an unprecedented $1.2 million gift from an anonymous patron.

The symphony also received $4 million in state funding. The organization has been able to whittle down $2.1 million in long-term debt to about $1.8 million, Gulick said.

The Honolulu Symphony annual budget is about $8.5 million.

"Despite all of our problems, we did quite well," he said.

In the meantime, ticket sales for the current season stand at $1.1 million, about $200,000 ahead of last year, according to Gulick.

He said the symphony is looking forward to expanding its educational outreach this season, with visits scheduled to Maui, the Big Island, Kaua'i and Lana'i.

Symphony board chairman Jeffrey Minter attributed the organization's "newfound vitality" to the musicians' loyalty to the community.

"The next step toward achieving a truly solid position for the organization as a whole is the continued support and respect of community members, as well as city and state government," Minter said in a statement.