In an editorial that misses the mark, Cooperate to reform Overture, the Wisconsin State Journal commends the leadership of the Overture Center for laying off employees and calls upon public officials to renegotiate the labor agreement with the union that represents the employees.
Mayor Dave Cieslewicz and the City Council should respond by reopening the city contract... to allow center management to control pay and benefits...Labor costs are by no means the only part of Overture that deserves an overhaul. But they compose the largest expense item in Overture's budget. The city's pay structure is out of line in several places...
...For example, a study found that an Overture ticket cashier earns $18.34 an hour, compared to a statewide benchmark of $10.30.
The pay structure is not out of line.
Out of line were the decisions that led to the design of Overture and the Wisconsin State Journal editorial.
The original design problems will be dealt with in a separate post, for now I will deal with the editorial.
For over twenty years the pay structure for Civic Center and subsequently Overture worked just fine. That pay structure is based on the workload and responsibilities of the staff ranging from ticket sellers to electricians.
An examination of the job descriptions is a good place to start. A ticket seller at Overture has far more responsibilities than a ticket seller in Wausau.
Next, the State Journal repeats the same mistake it committed last summer when it attempted to demonstrate that the way to deal with the financial losses at the city public swimming pool was to lower the wages of life guards. Wisconsin State Journal's Goodman Pool Editorial All Wet.
Madison pools lose money because the revenues, not the wages, are out of line.
If Madison charged individuals and families the same rates as the suburban pool operators, there would be no deficit.*
The same is true with Overture. While salaries do comprise the largest expenditure in Overture's budget, the greatest discrepancy is in the largest budget item, revenues from performances - that would be ticket revenues for the producers.
The ticket revenues are not sufficient to maintain the facility and pay the bills.
This is not about 'tough love.'
This is about a series of mistakes made in the automobile industry, the financial services industry, and in the Baumann administration's decision to turn over the operation of the Civic Center to a body with no obligation to the public. The Overture board has no constituency and never did.
As a result the employees suffer in a organizational structure that was cobbled together to meet the needs of the previous Civic Center director and those who had his ear, namely the then mayor.
The Wisconsin State Journal notes,"The economic downturn and some boneheaded financial decisions have left Overture troubled..."
Yes, I would say troubled. The fund is over $20 million lower than it should be.
Less than one percent of the losses (not the principal), would cover the cost of the slashed workers wages for another ten years.
Which gets us to the real issue. There must be a reason that the State Journal repeatedly attacks reasonable workers' wages whenever there is a financial crisis.
They are preparing for the obvious at the newspaper. The day the layoffs and the cuts come.
As Roger Ebert noted in analyzing the crash of the troubled Chicago Tribune, the problem is not the staff but the enormous debt that paper faces because its current owner, Sam Zell, bought the company on credit.
*Madison charges the lowest daily fee for a child at $2.25 while it is $2.75 in Middleton, $3.00 in Sun Prairie and a nifty $6.00 in in Shorewood for a daily guest pass (3.00 for a grandchild).
And in Madison the amenities and the recreational options are far greater than at any of these other pools.
A family membership in Madison for the season is $145 (non -residents $285); in Middleton it is basically the same for residents and $355 for non-residents. In Shorewood it is a whopping $437 and $582. Only Sun Prairie undercuts Madison at $90/135.