ENO cut jobs in face of Treasury funding threat

Published Tuesday 27 February 2007 at 16:50 by Nuala Calvi

English National Opera has claimed that its decision to axe 45 members of staff is necessary because of the uncertain financial environment created by the threat of cuts following the Treasury’s forthcoming Comprehensive Spending Review.

The organisation says that, after two previous bail-outs totalling almost £20 million, it is “very clear” that it will not be saved from collapse again. No reserves and limited resources to create an annual general contingency fund have led the company to announce the job losses.

As well as cutting staff, including singers and musicians, ENO managers want to significantly rewrite contracts with Equity, Bectu and the Musicians’ Union, claiming the current terms and conditions are old-fashioned and restrictive.

A spokeswoman explained: “We can’t afford to open on Sundays because we have to pay additional overtime. If we want to do small-scale work we have to pay everyone, even if they’re not performing. And for larger work, we can’t bring in freelancers.

“In relation to staff, the costs we have are too high - staff and overheads come to 72% of our annual turnover - and that gives us no flexibility in a tight financial environment. We have such a small contingency, we can’t plan more than season to season.”

Unions responded with anger at the news that 10% of the workforce could be cut just four years after 75 people were made redundant.

Musicians’ Union assistant general secretary Horace Trubridge said: “Every time there is an overhaul at ENO we are told that sacrifices and concessions are necessary to ensure the long term stability of the company. The Arts Council England stabilisation programme, the last round of redundancies and the refurbishment of the Coliseum were all hailed as essential moves that would guarantee security for the performers and technicians at this world-renowned opera company. Now it appears that yet again the management has failed to do its sums properly.”

However, Bectu’s newly elected general secretary Gerry Morrissey said the government should take some of the blame for the climate of uncertainty.

“This announcement comes on the back of the government reducing grants to the arts over the last couple of years and most companies are at best expecting a standstill budget for the next financial year,” he said. “We cannot help but believe part of this is down to expenditure on the Olympic Games by the Department for Culture, Media and Sport.”