Dec. 2 (Bloomberg) -- Milan’s La Scala opera house and a union representing about half of its orchestra agreed on a new contract, averting an additional strike that threatened the Dec. 7 gala opening night of Verdi’s “Don Carlo.”

The theater and the FIALS union, which also represents some of the chorus members, and three other labor groups reached an accord late yesterday, La Scala said in a statement. FIALS, which said in July it would stop work during the first three shows of each ballet or opera, “has canceled all the strikes already announced,” according to the statement.

The premiere, held for the past 42 years on Dec. 7, Milan’s holiday celebrating its patron Saint Ambrogio, earns La Scala about 2 million euros ($2.5 million) and is the biggest social event in Milan. Italian Prime Minister Silvio Berlusconi, Russian President Dmitry Medvedev and Argentine President Cristina Fernandez de Kirchner will be attending, according to a report in Corriere della Sera that a theater official was unable to confirm.

The FIALS union has been seeking a bigger share of the opera house’s earnings from broadcasting, while La Scala said its finances didn’t allow it to give the artists more money. FIALS’s strikes canceled three “La Dame aux Camelias” shows in October and three performances of “The Merry Widow” last month, costing the theater 600,000 euros.

La Scala said Nov. 17 that it may break even in 2008 for the fourth straight year unless strikes cause more disruptions. It has about 1,000 staff, including part-time workers. FIALS members comprise about 65 of 135 orchestra players and 30 of the 105 choral staff.

The new “Don Carlo,” the four-act version of Verdi’s 1867 grand opera, features Giuseppe Filianoti and Stuart Neill as the eponymous hero, and Fiorenza Cedolins and Micaela Carosi as Elisabeth de Valois.

To contact the reporters on this story review: James Amott in Milan at jamott@bloomberg.net Chiara Remondini in Milan at cremondini@bloomberg.net

Last Updated: December 2, 2008 04:06 EST