In Thursday’s (10/27) Philadelphia Inquirer, Peter Dobrin writes, “Even though its new four-year labor contract with musicians will compel the Philadelphia Orchestra Association to raise $5.9 million more than it had anticipated, the association sought approval of the pact Wednesday from U.S. bankruptcy court. Hearing no objections, Judge Eric L. Frank said he would approve the deal. ‘We’re pleased that the court granted the motion, and we’re thankful to our musicians,’ association chairman Richard B. Worley said. ‘This is a very, very important step in this road toward recovery and emergence from reorganization. We have additional issues to deal with, but this is very big and very important.’ … The contract’s acceptance does not end the association’s six-month-old Chapter 11 case. The Pension Benefit Guarantee Corp., the federal agency that insures pensions, has not approved the proposed termination of defined-benefit pension plans. Talks continue with the Kimmel Center over changes in the lease agreement and relationship with the orchestra. … Musicians will take significant cuts under the terms of the new contract, which takes effect Tuesday. The ensemble will shrink, salaries are cut by 15 percent, and retirement income is reduced by an undetermined amount.”
Posted October 27, 2011
