CORONA Kennedy Center tells musicians no more paychecks hours after $25 MILLION bailout passed

MinnesotaSmith

Membership Revoked
No words.


Kennedy Center Tells Musicians It Will Stop Paying Them Hours After $25 Million Bailout Is Signed

National Symphony Orchestra will stop receiving paychecks on April 3

GettyImages-453734948-736x487.jpg


Bill McMorris MARCH 28, 2020

"The John F. Kennedy Center for the Performing Arts informed members of the National Symphony Orchestra that they would no longer be paid just hours after President Trump signed a $25 million taxpayer bailout for the cultural center, according to an email obtained by the Washington Free Beacon.
Nearly 100 musicians will no longer receive paychecks after April 3, according to an email from the orchestra's Covid-19 Advisory Committee.

"The Covid-19 Advisory Committee was broadsided today during our conversation with [Kennedy Center President] Deborah Rutter," the email says. "Ms. Rutter abruptly informed us today that the last paycheck for all musicians and librarians will be April 3 and that we will not be paid again until the Center reopens."
The email went out to members on Friday evening, shortly after President Trump signed the $2 trillion CARES Act, a stimulus package intended to provide relief to people left unemployed by the coronavirus pandemic. Congress included $25 million in taxpayer funding for the Kennedy Center, a provision that raised eyebrows from both Democrats and Republicans, but ultimately won support from President Trump. The bailout was designed to "cover operating expenses required to ensure the continuity of the John F. Kennedy Center for the Performing Arts and its affiliates, including for employee compensation and benefits, grants, contracts, payments for rent or utilities, fees for artists or performers," according to the law's text. The arts organization decided that the relief did not extend to members of the National Symphony Orchestra, its house orchestra.

"Everyone should proceed as if their last paycheck will be April 3," the email says. "We understand this will come [as a] shock to all of you, as it did to us."

The Kennedy Center did not return request for comment.

A veteran member of the orchestra, who requested anonymity for fear of reprisal, told the Washington Free Beacon that the decision "blindsided" musicians. The member welcomed the bailout package as necessary funding for the arts, but was stunned that it would not be used to cover payment for the artists.
"It's very disappointing [that] they're going to get that money and then drop us afterward," the musician said. "The Kennedy Center blindsided us."

The Kennedy Center, which recently completed a $250 million renovation, received $41 million from taxpayers in 2019, but faced massive deficits after shutting its doors on March 12 due to the coronavirus outbreak. President Rutter went on a media blitz to highlight the cultural hub's struggles, telling the Washington Post that she would forego her $1.2 million salary during the closure. Members of the orchestra chafed at the notion that they should do the same—particularly because they also face the prospect of losing their health benefits after May 31.

Orchestra members are challenging the Kennedy Center over its handling of the outbreak. The orchestra is only a few months into a four-year collective bargaining agreement it signed in September 2019. The orchestra filed a grievance, released Saturday, saying that the center violated the contract, which stipulates that artists be given at least six-weeks notice before paychecks can stop.

"While the Union understands that the Kennedy Center has decided to cancel all performances through May 10, 2020 because of the COVID-19 pandemic, those cancellations do not give the Association any contractual basis for failing to comply with the sections of the [agreement]," the grievance says.*
While orchestra members are confident in their case, committee members said the decision would not likely come for at least two weeks.

"There is no provision of our collective bargaining agreement that allows the Kennedy Center to decide to stop paying us with only one week of notice," the email says. "While we fully expect that an arbitrator would agree that management violated the CBA and that we are entitled to continued salary and benefits, this process takes time."

The Kennedy Center is scheduled to reopen on May 10, though it can continue spending stimulus funds through September 2021.

*Update: This piece has been updated with a quote from the grievance [committee?].
 

et2

Has No Life - Lives on TB
I’m guessing there will be a lot of that coming this week. Even though the “bailout“ might be weeks to longer than a month away.
 

questionable1

Contributing Member
The article is written to evoke a specific response. Without any idea of their operating costs you cant tell if this is reasonable or not.
As I read it, the article suggests the kennedy center waited until it got its bailout and cut the symphony loose due to greed.

I have no idea how many musicians and artist they are paying. Are these 100 out of 10000? What expenses does the Kennedy center have? 25m is a lifetime to me. Could be a drop in the bucket for the Kennedy center. Have the layoffs been planned for a while? For all i know this could have been in the works for a while.

Im not saying its not a greedy money grab, an example.of another tax payer rip off. Im saying there isn't enough information in the article to make that determination.

In the end all we can know is that it is Trump's fault.
 

MinnesotaSmith

Membership Revoked
The article is written to evoke a specific response. Without any idea of their operating costs you cant tell if this is reasonable or not.
As I read it, the article suggests the kennedy center waited until it got its bailout and cut the symphony loose due to greed.

I have no idea how many musicians and artist they are paying. Are these 100 out of 10000? What expenses does the Kennedy center have? 25m is a lifetime to me. Could be a drop in the bucket for the Kennedy center. Have the layoffs been planned for a while? For all i know this could have been in the works for a while.

Im not saying its not a greedy money grab, an example.of another tax payer rip off. Im saying there isn't enough information in the article to make that determination.

In the end all we can know is that it is Trump's fault.

Except, the clause in the bailout bill specifically said the money for the Kennedy Center was in part for paying employees. This is at best legal graft IMO. The KC management should either keep paying its employees -- or send back the check.
 
Last edited:

questionable1

Contributing Member
Except, the clause in the bailout bill specifically said the money for the Kennedy Center was in part for paying employees. This is at best legal graft IMO. The KC management should either keep on its employees -- or send back the check.
I may have missed it. Where does it say they're not paying employees?
How many employees do they have? Id agree, if they have 110 employees and they're canning this 100.
This article wont be a stand alone. There are or will be similar stories along the same lines.
 

MinnesotaSmith

Membership Revoked
I may have missed it. Where does it say they're not paying employees?
How many employees do they have? Id agree, if they have 110 employees and they're canning this 100.
This article wont be a stand alone. There are or will be similar stories along the same lines.

First two sentences of the article:

"The John F. Kennedy Center for the Performing Arts informed members of the National Symphony Orchestra that they would no longer be paid just hours after President Trump signed a $25 million taxpayer bailout for the cultural center, according to an email obtained by the Washington Free Beacon.
Nearly 100 musicians will no longer receive paychecks after April 3, according to an email from the orchestra's Covid-19 Advisory Committee."
 

questionable1

Contributing Member
First two sentences of the article:

"The John F. Kennedy Center for the Performing Arts informed members of the National Symphony Orchestra that they would no longer be paid just hours after President Trump signed a $25 mill....
So the orchestra cleans bathrooms and empties the trash cans? Do they write their own checks?
I'd venture to say they have employees that are not in the orchestra.
 

night driver

ESFP adrift in INTJ sea
Not like they have a legal responsibility to do that or anything.

Consider the concept of fiduciary responsibility.
 

MinnesotaSmith

Membership Revoked
So the orchestra cleans bathrooms and empties the trash cans? Do they write their own checks?
I'd venture to say they have employees that are not in the orchestra.

That was likely long-ago outsourced to subcontractors. Likely no janitors actually get paychecks that read "Kennedy Center" on them.
 

questionable1

Contributing Member
That was likely long-ago outsourced to subcontractors. Likely no janitors actually get paychecks that read "Kennedy Center" on them.
My point isn't in the details, i'm saying the while article is written to evoke an emotional response and people should ask themselves why.

Unless you're the author you probably don't have the inclination or time to dig deeper.
 

Blacknarwhal

Let's Go Brandon!
Not like they have a legal responsibility to do that or anything.

Consider the concept of fiduciary responsibility.

They kind of DO have a legal responsibility, from what I can tell.

Orchestra members are challenging the Kennedy Center over its handling of the outbreak. The orchestra is only a few months into a four-year collective bargaining agreement it signed in September 2019. The orchestra filed a grievance, released Saturday, saying that the center violated the contract, which stipulates that artists be given at least six-weeks notice before paychecks can stop.
 

Cacheman

Ultra MAGA!
The Orchestra must fund itself and it seems specific where the government appropriations to the Kennedy Center go......


As President Kennedy’s memorial, the Center does receive federal appropriations. However, those appropriations can be used only for the operation and maintenance of the building. That means we must rely on contributed and earned income to pay for all of our artistic and educational programming. Without earned and contributed revenue, the Kennedy Center would just be an empty building.
Ticket sales cover only about half of our total budget, so your contribution is vital to helping us fulfill our mission of ensuring children and adults nationwide are able to create, experience, learn about, and engage with the arts.
 

20Gauge

TB Fanatic
The article is written to evoke a specific response. Without any idea of their operating costs you cant tell if this is reasonable or not.
As I read it, the article suggests the kennedy center waited until it got its bailout and cut the symphony loose due to greed.

I have no idea how many musicians and artist they are paying. Are these 100 out of 10000? What expenses does the Kennedy center have? 25m is a lifetime to me. Could be a drop in the bucket for the Kennedy center. Have the layoffs been planned for a while? For all i know this could have been in the works for a while.

Im not saying its not a greedy money grab, an example.of another tax payer rip off. Im saying there isn't enough information in the article to make that determination.

In the end all we can know is that it is Trump's fault.
You have to look at fixed costs first and decide what is needed to fund those cost and where the income is derived from. After that is settled, you look at variable costs, (most often labor) and then begin cutting costs there. You keep cutting until you balance out. Failure to do so or delaying the process, just means either you are out of business forever or the cuts must be much deeper.

For some reason everyone believe companies never pay taxes, (payroll or otherwise), never have to pay rent or a mortgage or seem to have unending sources of cash.

They really should look at their W2s at the end of the year.... that thing that is noted as DD $ xxxx is the cost of medical care for that person for the year. This is the company's portion of the costs. I often see $10,000 or more and the people who come to see me complain the company is a cheap basta*d... etc...

They simply have no idea how a business works.
 

Dobbin

Faithful Steed

If these executive salary ranges (i.e. $150K) were DOUBLED, they would still be 1/4 the salary being deferred.

It is good to be the King's friend.

Dobbin
 

MinnesotaSmith

Membership Revoked
Looks like this is becoming a pattern; "My company needs a bailout!" followed by "So I can pay for everything BUT payrolls" (when that's what the country MOST needs to get paid):


SUNDAY, MARCH 29, 2020
Let them go bust

"NN Taleb is right about letting the airlines fail:
"Planes will fly with new owners."

Famed author and statistician Nassim Nicholas Taleb has trained his sights on billionaire Richard Branson, urging the UK government to let the airline owned by the “tax refugee” to go bankrupt. Branson has had a torrid fortnight, drawing the ire of politicians of all stripes for putting all Virgin

Atlantic staff on unpaid leave because the carrier has been walloped by the Covid-19 pandemic.
The tycoon has led the calls for a state-sponsored bailout of the aviation sector, but plans to use the funds to cover fixed costs, rather than pay its staff.



That goes for the banks too."
 
Top