Author: Faine, Hyman R.

Publication Year: 1971

Media Type: Report

Summary:

Abstract:

In this paper I address myself to the nature of trade union activities and collective bargaining between management and labor in the field of nonprofit arts enterprises. These include symphony orchestras, theatre, opera, and dance companies, as well as museums. I am limiting myself to arts enterprises where profitability is not the prime objective of the organization.

The basic economic premise of this paper, so well substantiated by the pioneering research of William J. Baumol and William C. Bowen is that performing organizations typically operate under constant financial strain that their costs almost always exceed their earned income. They further conclude that because of the economic structure of the performing arts, these financial pressures are here to stay, and there are fundamental reasons for expecting the income gap to widen steadily with the passage of time. I believe that in all probability future collective bargaining in the arts will not be between management on one side and the union on the other, but more likely be between management and union on one side confronting the source of funding on the other. If that source of funding is a board of trustees, then it will be the second part of the bargaining equation. If the source of funding is no longer the board of trustees, then their place in the bargaining process will be on the same side as management and the union. The three will determine what and how to bargain with government or its proxy, the foundation, corporation or any other source of deficit contributions available to that arts organization. In some respects, this type of relationship resembles the type of bargaining referred to as cooperative bargaining.

Arts & Intersections:

Categories: Organizational Planning