Arts Centre flags widespread job cuts
Date
September 18, 2013
The Arts Centre Melbourne is facing widespread job cuts and a possible operating loss as chief executive Judith Isherwood begins plans for a significant organisational restructure.
In a letter to staff on Monday, Ms Isherwood said the Centre was under unsustainable budget pressure and that changes were needed to ‘‘achieve ongoing financial sustainability in an increasingly difficult economic environment’’.
According to the restructure proposal, nearly every business unit within the Arts Centre could face losses: performing arts (including programming), corporate services (finance and human resources), customer enterprises (commercial and visitor/reception services), marketing and online, as well as development (corporate communications).
Staff who met with the Community and Public Sector Union on Tuesday evening were in ‘‘shock’’, CPSU spokesman Robert Laird said. In a statement to the media, Ms Isherwood said further details would be revealed after consultation with staff and said the proposed restructure was ‘‘intended to make better use of the Centre’s staff skills mix and resource allocations and a number of operational changes to respond to shifting customer needs and address rising overheads.’’
She would not comment on an ABC report that the Centre could be facing losses of up to $8 million, following a $1 million loss last year, however the CPSU pointed to last year’s state government cuts to arts organisations of around 3.5 per cent as contributing to the Centre’s woes.
‘‘The Napthine government cuts to the arts have been savage and this is the fallout,’’ Mr Laird said.
A spokeswoman for Arts Minister Heidi Victoria said the Arts Centre operated as an independent trust and was responsible for its own operating and staffing decisions.
The Arts Centre complex spent two years at diminished capacity due to the $135 million renovation of Hamer Hall, which reopened in July 2012. Since then it has hosted major productions such as War Horse and the experimental Philip Glass opera Einstein on the Beach, and is set to be the home of Opera Australia’s anticipated production of Wagner’s four-opera series of The Ring and the attendant Ring Festival in November.
It has already brought food and beverage services in-house in an effort to recoup costs however, in the case of War Horse at least, received none of the box office takings for the multi-million dollar production.
The Arts Centre receives government funding of close to $20 million, which makes up between 20 and 25 per cent of its total budget.
The minister’s spokeswoman said, as with any organisation, the Centre could request further funding through the pre-budget process.
The organisation’s annual report will be tabled in Parliament in coming weeks.
with Sonia Harford, Gina McColl
Read more: http://www.theage.com.au/entertainment/stage/arts-centre-flags-widespread-job-cuts-20130917-2txd8.html#ixzz2fCNjUs00