Philharmonic Committed to Long-term Investment in the Arts and Our Community

February 11, 2023 - The Philharmonic’s Board of Directors wholeheartedly agrees with Fort Wayne community members who are calling (in their letter published Feb. 4 in the Journal Gazette) for an immediate resolution to the ongoing Musicians strike. As they stated, it is time to return music to the Philharmonic stage.

Offering Musicians record wage increases and several additional concessions to encourage a contract settlement, our Board is deeply disappointed with the union’s choice not to settle after 1) we offered a 45.8% wage increase over 4 years which raises wages above comparable market symphonies, like in Toledo; and 2) made more concessions during recent bargaining sessions on February 3 and 5. These givebacks to the union go beyond the Board’s last and final offer made two weeks ago with an intense desire to find a resolution with our talented Musicians, and ensure that beautiful music rings out in the community. 

Because the future of the Philharmonic’s season is seriously threatened by the ongoing strike, we believe the public is entitled to know the facts about the stalled negotiations, which affect our community, particularly the arts.

To move more quickly toward a contract resolution, the Board recently made negotiation concessions that include:

• Withdrawing a proposal that would extend the Musicians’ required work hours from 4-5pm, to preserve their 3-hour break from 4-7pm, and only clarifying that after-school programs will be included within the contract along with Fort Wayne youth and teen centers.

• Agreeing to keep all 44 core Musician seats even though full-time Musicians are only required to work 487.5 hours compared to a typical full-time job at 2,080 a year. Also, reducing three seats through attrition could have saved funds that would have bolstered core Musician salaries. The three positions would have moved to per-service status, which means the instrument player would be paid only for the concerts performed and ensure continued quality of performances.

• Reducing required attendance for Musicians and extending flexibility to per-service status seats. In this concession, the Board agreed per-service Musicians are only required to do 60% of services scheduled instead of the original ask for 75% of services. The union continues to oppose even the reduced service requirements; however, the Board believes attendance accountability is critical in managing any business successfully, including the nonprofit Philharmonic. Without work rules, problems can arise as they did last year when one Musician did not perform any services (neither concerts nor programs) yet received a salary and benefits.     

As dedicated business leaders and volunteers, the Board members are committed to ensuring clearly defined management rights that provide for a financially responsible Philharmonic operation, which supports the orchestra and staff. Defined policies bring clarity and pre-empt disruptive conflicts. For example, a conflict resulted last year when the Philharmonic wanted to partner with the Boys and Girls Club, but the Musicians’ union refused. It claimed the Boys and Girls Club is not a “youth or teen center” as stipulated in its contract. Conflicts like this are not conducive to a collaborative culture that the Philharmonic Board and leadership desire.

Management rights simply reserve the Philharmonic’s right to manage the organization’s operations on issues not outlined in the terms and conditions of the collective bargaining agreement. We revised the Philharmonic’s offer to make it clear that a management rights clause does not limit the grievance procedure by any Musicians but ensures that past challenges can be addressed in a timely and appropriate manner by Philharmonic management. These points are about clarity and cooperation in the relationship with Musicians, not control.

Being transparent, we want the community to know that every concession made has an adverse financial impact on the long-term sustainability of the Philharmonic. Nonprofit management best practices call for responsible oversight of resources, including building and protecting any endowment that can provide annual income to support operations.

Unlike many other local cultural organizations, the Philharmonic receives almost no public funds from the city and county. Without public support, it is the responsibility of the Philharmonic to generate operating revenues through ticket sales, donations, and annual endowment earnings to help ensure the Philharmonic’s financial health. For example, concert ticket sales only account for 25% of annual revenue and does not cover expenses that are associated with each production. The generosity of Philharmonic donors and endowment income help bridge this gap but an annual operating deficit averaging $323,000 continues to create challenges for the Philharmonic.

In these contract negotiations, the Board made the extraordinary decision to draw funds from the Philharmonic’s unrestricted endowment to significantly increase Musicians’ wages. This is a risk because it reduces the principal endowment funds, which earn annual income that we rely on to help sustain the organization. It is important for our community to continue to support the Philharmonic through ticket purchases or donations to help supplement the full-time orchestra that we have always preserved.

We made this exception to withdraw funds from the endowment above and beyond the limits provided in our bylaws in order to invest in the long-term health of the Philharmonic, the arts, and our community. It is now up to the Musicians’ union to respond to the community’s call for action and contract resolution. 

The Philharmonic Board and leadership stand ready to foster a culture of collaboration and to return the programs and performances to the community. Performances cannot return without a willing partner on the other side of the negotiating table. The Philharmonic has continued to give as the union has provided minimal proposals to work towards an agreeable middle ground. Along with the Musicians, we must work to regain audience trust and community support as we move forward. Our community deserves a Philharmonic now and for generations to come.

-The Philharmonic Board of Directors