The Metropolitan Opera extended its lockout deadline, for a third time, to the end of the week while it continued contract negotiations with the American Guild of Musical Artists (AGMA) and Local 802 of the Associated Federation of Musicians.

Under this new deadline, workers will continue their regular duties as rehearsals are underway for the new season productions of "Le Nozze di Figaro," "La Boheme," and "Macbeth." The season begins September 22.

Most of the union contracts were due to expire on July 31, with the Met threatening a lockout if they could not reach an agreement. The lockout deadline was extended for 72 hours on August 1st after a federal mediator was brought into the discussions. 

It is the mediator, Allison Beck, who has called for an independent reviewer to conduct a confidential and independent study of the Met's finances. Eugene Keilin of KPS Capital Partners LP will carry out the study and produce a non-binding report for both parties.

"We are encouraged with this step forward that we believe will address the issues in contention and will ultimately lead to an agreement that is fair to everyone," said James Odom, President, AGMA.

The dispute centers on the Met's general manager, Peter Gelb,who proposed cuts of over $30 million to work contracts, claiming the Met has financial difficulties. The cuts of 17 percent would represent pay and pension cuts, health benefit contributions and changes to work rules. Unions argue the cuts are draconian and punitive and don't address Gelb's lavish spending and miscalculations on new productions -- a deficit of $2.8 million of its annual operating budget of $326 million. A study by Local 802 AFM claims Gelb has increased the Met's operating budget by 50 percent.

Negotiations with its largest union, Local 1 International Alliance of Theatrical Stage Employees, whose members are stage hands, and nine others are put on hold temporarily. 

"The lockout deadline extension "is a step in the right direction," said James J. Claffey, Jr., president Local 1, IATSE in a statement. Local 1 has reached agreement with the met on past contracts as late as September or October.  It is our intent to bargain in good faith and get a deal done. We have been bargaining with management since May and we will continue to do so without a mediator in days to come.  We want to see the show go on."

Three unions -- Local 32BJ, Local 210 and Local 30 -- were able to negotiate new contracts before their contacts expired.