Metropolitan Opera Proposals to AGMA March 1, 2014

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1 Metropolitan Opera Proposals to AGMA March 1, 2014 Dear Alan: Following this letter are the Met s proposals for a new five-year agreement between the Met and AGMA. In the past week, we have met with representatives from Local One and Local 802, who listened to our detailed presentation concerning the Met s economic situation. Both unions have recognized that we have critical economic issues that must be addressed in our new labor agreements, which account for two-thirds of the Met s expenses. Among other matters, we demonstrated to Local One and Local 802 that the Met is facing steady declines in our box office revenue (as are opera companies across the nation), flattened HD revenues, and an insufficient endowment (out of which we nevertheless have had to take large draws). We also demonstrated that, through a wide range of measures, we have kept expense growth under control, particularly in the last five years. We must now focus on labor costs. It is essential that we find a workable solution to reduce these costs to enable the Met to endure for the foreseeable future. What we are facing is an unprecedented challenge that goes beyond our recognition of the extraordinary high quality and hard work of the chorus and the other AGMA members. In our effort to reduce costs, we are focusing primarily on work rules that are no longer affordable, such as paying extra for a member of the chorus to put on a mask or change shoes, or paying extra for rehearsals in a week when the weekly performance guarantee hasn t been met. Even with the reductions we are seeking, the level of pay for your regular members will still remain at the very top of the pay scale. We are asking for your cooperation to ensure the future of the Met and, with it, the future livelihood of your members. We are eager to meet with you to review the Met s economic situation, to explain why our proposals are necessary, and to get working at the bargaining table so we can reach an agreement. Please let us know when your bargaining committee 1

2 would be available to hear our economic presentation. Additionally, please provide dates (starting in April and continuing through July) when your committee would be available for bargaining sessions. I look forward to meeting with you and the Committee. Best wishes, Peter Gelb All Groups: Proposals 1. Term: 5-year term (August 1, 2014 through July 31, 2019). 2. Media: a. Media salary to be $7,000 for Group A; Group B: $ for a week in which Saturday radio broadcast is worked but no other media performance; $ for a week in which Saturday radio broadcast and 1-4 additional media services are worked; $54.69 per media performance for a week in which Saturday broadcast is not worked, but one or more other media activities is; Group C: $ for a Saturday radio broadcast and $54.69 for each additional media service; Group D: the Group C rates except that any media service which is also an HD transmission will be $500. Media salary may not exceed $7,000 for Group B, C or D. b. Media Salary payments to be converted to guarantees and added to existing media guarantee. c. Media capture of audiovisual productions and media exploitations to be increased to 35 in each contract year (Article Tenth, Section D.2). d. Right to designate up to twenty-five (25) live radio relays during the term of the agreement that were/are originally relayed between August 1, 2006 and July 31, 2019, for all forms of audio exploitation, as set forth in the second paragraph of Article Tenth, Section D.2(c) (ii), without additional payment other than net 2

3 Chorus: 3. Pension: revenue participation. These relays are in addition to Saturday afternoon radio broadcasts and other performances. a. Accrual rate to be set at 1.0% b. Benefit capped at 40% of annual base year compensation. c. Pension Fund Concert to include rehearsal and performance, which may be designated to be any regularly-scheduled performance (regardless of length). d. Eliminate provision in Section I-Article Thirteenth, Section G, allowing per performance artists to participate in the Metropolitan Opera Association Retirement Plan and delete Section II Article Sixteenth. 4. Medical Plan: Met Medical Plan Participants: a. Health plan to be as set forth on Exhibit A. b. High Value Plan Excise Tax, if any, pursuant to the Affordable Care Act will be payable by bargaining unit members participating in the medical plan. c. Met health plan eligibility limited to Regular Chorus, Plan Artists, Staff Stage Directors, Staff Stage Managers and Staff Performers. Union Plan Participants: a. Eliminate contributions to AGMA Health Plan B. 5. Sick Pay: a. For Solo Singer Plan Artists, Staff Stage Managers, Staff Stage Directors and Regular Choristers, sick pay will be paid at 50% of weekly base salary after four (4) weeks, and will be capped at twelve (12) weeks. b. No sick pay for weekly/extra employees (i.e., those not in the categories specified in 5.a, above). 3

4 6. Compensation for all services (performances and rehearsals), including penalty and premium pay, to be applied toward guaranteed weekly salary. 7. Performances will be compensated based on actual time worked, with a three-hour minimum call and the fourth hour, if applicable, paid in 15-minute increments at straight time. 8. There shall be no limitation on the number of studio rehearsal hours within permitted rehearsal hours. 9. Compensation for performance overtime shall be paid in segments of 15 minutes for each 15 minutes or less of work. 10. Eliminate length-of-day penalties. 11. Eliminate costume lunch penalty. 12. Eliminate additional payments for body makeup. 13. Article Eighth, Section C.5 will be amended to add that the change or addition of shoes, capes, sword belts, masks, and comparable items/garments also will not be considered costumes. 14. Compensation at straight time for actual time spent at fittings; minimum fitting call to be eliminated. 15. Eliminate premium pay rates (whether time-and-one-half or double time) for Choristers for rehearsal duties set forth in Article Third, Section D.4(c)(v), (vii) and (viii) and Article Third, Section D.4(d)(xii). a. Article Third, Section D.4(d)(vi) shall be modified to state Any rehearsal on a day in which a chorister is scheduled in an audience development performance. 16. Time gaps referenced in Article Third, Section D.4(d)(ii), (iii), (iv) shall be amended to refer to performance call time rather than the scheduled commencement time of a performance hour minimum performance call for Extra Chorus, with fourth hour to be paid in 15- minute increments and hours beyond 4 to be paid at time-and-one-half. 18. Evening rehearsals in lieu of performances will be paid at straight time. 4

5 19. Only those who rehearse or perform in Porgy and Bess will be compensated with respect to Porgy and Bess. 20. CTO and unutilized weeks to be paid at 50% of weekly salary. 21. Eliminate symphonic adjustment payments. Stage Managers & Stage Directors 22. Eliminate $2,000 Preparation Fee as to operas the individual has previously directed or assisted. 23. Eliminate Language Study Allowance. 24. Eliminate Preparation Allowance. 25. Weekly Stage Managers and Stage Directors to accrue vacation at 1/20 th of weeks worked Dancers 26. Per performance/extra dancer performance and rehearsal compensation rates to be 90% of rates. 27. Eliminate per performance/extra dancer payments made in lieu of any fringe benefits to extra dancers under Article Fifth, Section A.1(a) and (b). 28. Eliminate additional payments for body makeup. 29. Heavy carries shall be items over thirty pounds. 30. Eliminate length of day penalties. 31. Eliminate additional payments for chorus singing. 32. Eliminate premium pay rates (whether time-and-one-half or double time) for rehearsal duties set forth in Article Third, Section D.4(b) and D.4(c)(iii) and (vii). 33. Compensation at straight time for actual time spent at fittings; minimum fitting call to be eliminated hour minimum performance call, with fourth hour to be paid in 15-minute increments and hours beyond 4 to be paid at time-and-one-half. 5

6 35. A performance or rehearsal on Sunday or during a free period will be paid at straight time. 36. Payment to be made for actual time at fittings; two-hour minimum call to be eliminated. 37. Studio rehearsals will be no longer than seven (7) hours in a day. 38. Eliminate restriction on Saturday rehearsals. Solo Artists: 39. Per performance, plan artist and weekly artists will remain at their existing rates for seniority based compensation. New hires to be paid at the first year minimum rate of compensation. 40. Following the retirement or other separation of two plan artists, minimum plan artist staffing to be set at eight (8). 41. Weekly Artists to accrue vacation at 1/20 th of weeks worked. 42. Eliminate Preparation Allowance. Staff Performers: 43. Compensation for all services (performances and rehearsals), including penalty and premium pay, to be applied toward guaranteed weekly salary. 44. Eliminate fee in lieu of media and other payments to Staff Performers under Section VII.A.2 of 2011 MOA. 45. Appendix B: Eliminate Special Business rehearsal payments. 46. Following the retirement or other separation of two Staff Performers, number of Staff Performers in Section First, Paragraph A will be set at seven (7). Clarifications: 47. Employees on workers compensation leave will receive paid sick leave, if eligible, to supplement workers compensation insurance payments but total payments with respect to a given week may not exceed 100% of an employee s weekly guaranteed salary under this Agreement. 6

7 48. Unused vacation may not be carried over to a subsequent year. The Metropolitan Opera reserves the right to add to or otherwise amend these proposals. 7

8 EXHIBIT A Comparison of Current Met Medical PPO Plan B and Proposed Plan Changes General Information Plan Feature Current Met PPO Plan B High Deductible PPO Plan Annual Deductible (In-Network Only) Annual Out-of-Pocket Maximum (In-Network Only) $0 Single $0 Family $1,850 Single $3,700 Family $2,000 Single $4,000 Family $6,000 Single $12,000 Family Annual Deductible (Out-of-Network Only) Annual Out-of-Pocket Maximum (Out-of-Network Only) Physician Expenses $800 Single $1,600 Family $2,400 Single $4,800 Family $4,000 Single $8,000 Family $10,000 Single $20,000 Family In-Network Primary Care Physician Office Visit Co-Pay In-Network Specialist Office Visit Co-Pay Out-of-Network Physician Reimbursement Routine Physical Exams $15 90% $25 90% 70% 60% no co-pay no deductible Well Child Care & Immunizations 100% in or out-of-network 100% in or out-of-network Occupational, Speech, Physical Therapy & Chiropractic Care Hospital Expenses Hospital Same Day (outpatient) Surgery Emergency Room Co-Pay after $25 co-pay $75 (waived if admitted) In-network - 90% In-network - 90% In-network - 90% 90% after in-network deductible in or out-of-network 1

9 EXHIBIT A Comparison of Current Met Medical PPO Plan B and Proposed Plan Changes Plan Feature Current Met PPO Plan B High Deductible PPO Plan Diagnostic X-ray/Lab (Freestanding facility) Out-of network - 70% In-network - 90% In-network - 90% Anesthesiologists, Radiologists & Pathologists Mental Health/Substance Abuse Expenses Inpatient Mental Health Outpatient Mental Health Mental Health/Substance Abuse Expenses Inpatient Substance/Alcohol Abuse Outpatient Substance/Alcohol Abuse Other Covered Expenses Home Health Care (120 visits/year - visit = 4 hours of care) Skilled Nursing Facility (120 days/year) Prescription Coverage Retail Prescription Drug Co-Pays (30 day supply) Mail Order Prescription Co-Pays (90 day supply) Out-of network - 70% Out-of network - 70% with pre-certification Out-of network - 70% with Out-of-network - $50 annual deductible & 70% deductible waived Out-of network - 70% Generic - $10 Formulary/Brand - $20 Non-Formulary/Brand - $30 Generic - $25 Formulary/Brand - $50 Non-Formulary/Brand - $75 In-network - 90% In-network - 90% In-network - 90% with In-network - 90% In-network - 90% In-network - 90% with pre-certification In-network - 90% Out-of-network - not covered In-network - 90% Out-of-network - not covered 2

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