Rome, November 18 - Rome Opera House managers overnight signed an agreement with unions to cut costs in order to avoid the dismissal of the whole of the orchestra and choir - 180 employees. The agreement, which will be put to a vote of staff and to the Opera House board on November 24, features cost-cutting measures for three million euros a year and the commitment from seven unions to not strike over issues linked to the deal, ANSA sources said.

Last month, the opera house's board announced plans to sack the orchestra and the choir, saying this was the only way to save the loss-making institution.

It said at the time it would outsource musicians or periodically rehire the old staff on temporary contracts.

But unions protested against the move and last week Carlo Fuortes, the Opera House's general manager, said that alternatives could be found to the mass layoffs. Rome Mayor Ignazio Marino hailed the deal on Tuesday, saying that the city's hard line in dealing with the financial crisis had paid. Marino also called upon iconic Italian conductor Riccardo Muti to reconsider his decision to resign from the house in September after industrial action caused massive disruption to a series of shows. "The Rome Opera House agreement is a success for the whole city," he said. "The Opera house can go back to working seriously and serenely," Marino said. "I hope this can convince Maestro Muti to reconsider his decision in time".