For a Second Straight Year, 802 Posts a Loss
Volume CIII, No. 5May, 2003
For the year ended Dec. 31, 2002, Local 802 incurred a loss of $348,570, compared with a loss of $90,460 reported for 2001. (The audited financial statements for the year appear on pages 14-15 of the May 2003 Allegro.)
The year-to-year increased loss of $258,110 is the result of a decrease in revenues of $56,626, or just over 1 percent, and an increase in costs of $201,484, or 4 percent.
Revenue in 2002 from annual membership dues declined $76,986, or 4.5 percent, reflecting a decline in membership of 268 musicians during the year. Work dues were essentially unchanged from the prior year as increases from the Concert and Broadway departments offset weakness in Recording. Investment income, consisting of interest and securities gains, net of losses, declined in 2002 due to the use of funds in 2001 to liquidate the mortgage on the union’s headquarters building, and to reduced market interest rates.
With respect to expenses, spending for the Live Music Campaign amounted to $208,000 in 2002, versus $113,000 during the prior year, an increase of $95,000. In addition, departmental costs increased $143,000, or 3.7 percent. This increase includes the full year effect of the filling of some organizing staff vacancies in 2001. In recognition of the magnitude of the loss being incurred in 2002, however, other staff vacancies have been allowed to remain unfilled.
The increase in legal fees includes $51,638 relating to organizing activities, while savings were achieved in members’ life insurance and from the lack of mortgage interest expense.
Over the last two years, the union’s net assets have declined $439,000, or 10 percent, reflecting the losses incurred during that time. As stated in my previous reports, we can expect our ongoing costs, which are substantially personnel related, to continue to increase. In order to avoid ongoing losses, which will further erode our net asset position, ways must be found to increase revenues.