[ad_1]
The longest strike of the 128-year-old Chicago Symphony Orchestra came to an end on Saturday when musicians and the orchestra council signed a new contract to transfer players to their defined-benefit pension. similar defined contribution plan).
The proposed change to the pension plan was the main stumbling block in a nearly seven week strike by musicians. The deal was brokered with the help of Chicago Mayor Rahm Emanuel, who called the players union and orchestra management in his office on Friday to try to break the stalemate.
The orchestra management stated that the existing pension scheme, which guaranteed players a fixed amount at retirement, had become too expensive. The players countered that the proposed alternative, in which the orchestra would put a fixed amount of money into individual retirement accounts, would transfer the investment risk to the musicians.
Both sides proposed a compromise. The orchestra management said that when current players move to the new defined contribution plan and agree to invest their retirement accounts with caution, the orchestra will ensure that their retirement benefits will be identical to those that they would have earned with the old pension plan, which is frozen.
This guarantee will not be offered to new players: those hired after July 1, 2020 will immediately enter the new plan, in which 7.5% of their base salary will be placed in retirement accounts.
The other major problem was wages. The new contract will include increases in each of the five years of the contract – 2, 2, 2.5, 3.25 and 3.5% – bringing the base salary to $ 181,272 in the last year. announced the direction.
The strike has drawn the attention of the country's orchestras, which have been under pressure to cut spending, especially during contract negotiations with their unions. Defined benefit pension plans are becoming increasingly rare in the private sector, but they remain the norm among the country's leading orchestras. Musicians from across the country have been watching closely to see if Chicago players can protect theirs.
The Musicians Union said in a statement that the new agreement "preserves guaranteed minimum retirement benefits for current musicians and commits the parties to explore options for ensuring the retirement security of new employees". In the past, unions refused to accept the contract amendments would protect current workers at the expense of new employees, fearing that such agreements would create two-thirds of workers in the same orchestra.
The strike was also marked by the unusual involvement of Riccardo Muti, musical director of the orchestra, because the chiefs generally avoid giving the impression of taking sides in labor disputes. But before the strike began, Mr. Muti wrote to the orchestra's board of directors saying, "I'm with the musicians," and he then appeared with the players on the picket line.
Although Mr. Muti publicly insisted that he simply wanted management and council to "listen more carefully to the needs of musicians who represent one of the world's leading orchestras," it was difficult to miss the symbolism. He must return to the podium of the orchestra this week, which has increased pressure from both sides to reach an agreement.
Steve Lester, a bassist from the orchestra who chaired the musicians' negotiating committee, said in a statement, "After about a year of negotiations, we are victorious in our efforts to protect and maintain our secure retirement and to win field our annual salaries. "
Helen Zell, Chair of the Orchestra's Board of Directors, said in a statement that the new agreement "guarantees musicians the outstanding compensation they deserve", while ensuring the "long-term financial sustainability of the orchestra through the transition of the pension plan ".
[ad_2]
Source link