CSO players get short pay

Players of the Charleston Symphony Orchestra did not get full pay on Friday. The symphony's bank account depleted, management and musicians spent hours last week discussing their predicament and negotiating a solution, according to some involved.

"Short paychecks" and four weeks of unpaid furlough, to be taken before the season ends June 30, are part of a short-term deal worked out by musicians and management, according to symphony board president Ted Legasey. Non-musician staff also have agreed to a commensurate cut in annual wages, Legasey said.

"It is management's intent to keep the music playing for the balance of this season," Legasey wrote in a memorandum to symphony employees on Friday. "To do so will require your cooperation and great sacrifice."

The arrangement was the result of "a good team effort," he said, acknowledging the burden it places on musicians and staff. In his memorandum, Legasey expressed thanks and explained the reasons behind the current financial strain.

"We began the season with very little cash on hand, owing to a significant operating loss last season. This caused us to reduce the scale of our planned performances, reduce operating costs wherever feasible, and generally operate as frugally as possible," he wrote. "We gave no staff salary increases, and our music director and executive director each took voluntary 15 percent wage reductions. Then, the global financial crisis deepened and ticket sales, grants, sold service revenues, and contributions/sponsorships fell off. And, of course, our meager endowment has suffered significant losses, as have all financial investments."

The memorandum came as players rehearsed for a Masterworks concert featuring Mozart's "Prague" symphony and the Dvorak Violin Concerto with soloist Karen Gomyo.

The players responded with a statement from Debra Sherrill, chairwoman of the symphony's Keep the Music Playing Musician's Committee, in which the terms of the deal were reiterated.

"The musicians and staff of the CSO have made a great sacrifice in the form of $180,000 pay cuts to the end of the 2008-2009 season. This agreement reduces the wages for all CSO employees by 11.24 percent," Sherrill wrote in an e-mail. "In addition to these pay cuts, the musicians have also agreed to defer reimbursement of payroll shortfalls until December 1, 2009. We are doing this with the hopes that the board will enact the changes indicated by the 2009 Curt Long report and the 2008 'In Harmony' report. We support the findings of these reports and challenge the board as their fiduciary duty to oversee their implementation."

Curt Long, executive director of the Alabama Symphony, was invited by Charleston musicians recently to evaluate the financial health of the CSO. He recommended increased cooperation and a shift in focus from personnel cuts to general budget cuts, according to Legasey.

The reports included recommendations to strengthen fundraising operations and marketing programs, which the board has committed to do.

He wrote in his memorandum that cash on hand will support only about 20 percent of normal payroll. Hoping to avoid bankruptcy, he is asking musicians for their "forbearance" on upcoming paydays, when a full wage likely will not be provided.

A combination of wage reduction and obligatory furloughs will reduce payroll by more than 11 percent. Deferred wages will be recorded then reimbursed at a later date, Legasey said.

"We appreciate your understanding of the necessity of this action to help the CSO survive," he wrote. "And we will be forever in your debt for your generosity in making this sacrifice."

The gloomy message follows a difficult but ultimately successful October-December quarter. Fundraising efforts added to the symphony's total number of donors (though average gift amounts were down) and the organization raised $150,000, the result of a matching gift. Holiday performances exceeded attendance and financial goals, indicating an up-swell of support from the community.

Prompted to action by the fiscal emergency, musicians organized two benefit concerts, raising thousands of dollars.

Management now is programming its 2009-2010 season, and the new, smaller budget will include funds for an expanded development and marketing team, Legasey said.

"Notwithstanding the tough position we are in, I remain optimistic about the future," he wrote in his memo.

More meetings have been scheduled to discuss plans for next season.