NEW ORLEANS — In an April 2nd letter sent to New Orleans Musicians who are part of the Local 174-496 musicians’ union, there are concerns about how union finances were handled, for years.
“It’s not one thing that immediately happened. It’s kind of been compounded over a series of time,” said American Federation of Musicians representative Steven Begnoche.
Begnoche took over as trustee last month, striping elected officers of their authority. He was put there by the American Federation of Musicians, or AFM, which deals with local unions across the country. The letter points to “financial malpractice” and “administrative mismanagement” as problems in the local union.
“It’s a series of misfortunate events that got the local behind in its financial obligations,” Begnoche said.
One obligation is paying dues and fees to AFM for its support and network. Begnoche says the local union is three years behind.
“In principle, about $72,000,” Begnoche said. “That’s where we try to find out what happened.”
Begnoche points to Hurricane Katrina, Hurricane Ida, and the COVID pandemic as big reasons why the union doesn’t have the cash.
“It was spent with salaries, pensions, repairs, rent,” Begnoche said.
The letter also points out the 2016 reserve fund of about $500,000 is now just $24,216.
“There was no maleficence intentionally. It was a series of unfortunate events,” Begnoche said.
Begnoche is now tasked with shoring up the union, which is fully funded by its members. He says there are about 270 musicians who pay either $176 or $120 a year depending on membership level.
Eyewitness News reached out to union members Wednesday. They told us they either had no idea what was happening, or they were confused about how it could even happen.
“It’s something that can be fixed,” Begnoche said.
Having already restructured the local union in Austin, Texas Begnoche plans to reestablish financial responsibilities and implement education and training programs. He says it’ll take time.
“Meet folks, restore fiscal stability which we’re already in the process of doing now,” Begnoche said.
There will be a hearing Thursday afternoon at the union hall on Ursulines Avenue on whether the trusteeship should stay in place. Union members are invited to attend.
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