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Opinion

A Persistent Labor Challenge

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Opinion

Editorial

Most business owners and managers in this region had circled Sept. 3 on their calendars long ago.

That’s the day when roughly 3 million Americans were going to see their extended unemployment benefits — those $300 weekly bonus checks — expire, with little, if any, hope that the payments would be extended.

Thus, early September was supposed to be the time when a distressingly challenging labor market was supposed to begin improving and the pendulum was supposed to start swinging back toward employer. How much of a swing, no one knew, but there was to be a swing.

Well, it’s now mid-September, and those in the business community are waiting anxiously to see just what will happen now that the benefits have stopped and, supposedly, people will be heading back to the workforce.

It’s still early, and anything can happen, but many signs now point toward a softer, less pronounced improvement in the job market than people anticipated, and for a number of reasons. In simple terms, it seems clear that the problem runs much deeper than the extra unemployment benefits, although that has certainly been a factor.

Indeed, any time people can make more money sitting at home than they can working hard for eight hours a day, it’s only logical that many would choose the former path, and that’s why these benefits should have stopped long before Sept. 3.

But the benefits are only one of many reasons why people are not seeking employment — or seeking it and not finding it. Daycare is a huge issue for many. That industry has been hard hit by the workforce crisis, and services are just not as readily available as they once were. Meanwhile, COVID-19 and the Delta variant have many people reluctant to wade into the water, or back in the water, as the case may be. Also, millions of Americans were able to retire during the pandemic, and the many challenges stemming from COVID, especially in the workplace, gave them the impetus to take that step. Still others decided they just didn’t want to work for minimum wage, especially in the middle of the pandemic.

As for the hospitality sector, many people left it at the height of the pandemic in early 2020 when restaurants, bars, and hotels were shuttered, and they found something else — something better — and now, they’re not going back. There’s a similar story in healthcare, especially within the nursing field, but other specialties as well, as burnout from COVID has taken a huge toll on these professionals.

As for those who are seeking work, many of them still lack the skills they need to be good candidates for many of the jobs that are being posted, a continuation of a situation that existed in 2019, when, overall, there were far more openings than there were qualified people to fill them.

Add all this up, and it seems clear that, while it was still good to circle Sept. 3 on the calendar, the end of those unemployment benefits is not likely to be the end of the region’s labor issues. The problems are far more deep-rooted. And who knows what the impact will be of President Biden’s plans to require vaccination and/or testing for all employees of companies with more than 100 workers? It may put more still workers on the sidelines, and it may put more of them in the pipeline.

Stay tuned.

Those two words apply to just about every aspect of a workforce crisis that is deep, sometimes puzzling, and very persistent.

The Challenges Keep Multiplying

By
Opinion

Editorial

 

Way back in mid-March of 2020, as the state was shutting down due to COVID-19, we wrote about the great resiliency of this region’s business community and how it would be sternly tested because this was the greatest challenge anyone in business had ever faced.

Little did we know then just how stern this test was going to be and how long it would last. But 18 months later, not only do the challenges remain, but they have in many ways multiplied. Thus, a time that many thought would be normal — meaning what we knew in the fall of 2019, or at least something approximating it — is nothing like we imagined.

Indeed, this was expected by many to be a time when most of the hard decisions would be behind us. Decisions about whether to lay off or furlough people. Decisions about whether to forge ahead with programs and events that would bring people together in large numbers. Even decisions about whether to stay in business — or certain kinds of business.

As summer comes to a close and a fall shrouded by question marks looms, we’re facing some of those decisions again (or still) — and some new ones as well.

Some businesses may be forced to look again at mask mandates or at requiring proof of vaccination before one can enter an establishment or even a college campus. Others have already made vaccination a requirement for employment, and many others are contemplating whether to go this same route.

These are hard decisions that often put employers at odds with their customers and employees at a time when they simply don’t need to be alienating either constituency.

All of this makes it clear that the fight against this pandemic is far — as in far — from over.

Indeed, just as those who went home in March 2020 thinking it would be for just a few weeks soon learned how wrong those projections were, we’re all now forced to recalibrate, again, just how long we’ll be battling this pandemic and how heavy the fight will get.

What is clear is that the victory celebrations, if we can call them that, from just before Memorial Day, when the governor removed all remaining restrictions on businesses, were certainly premature.

Meanwhile, there are new challenges, from shortages of needed goods and raw materials to escalating prices and hard choices about if and how to pass them on to customers who are finally coming back in large numbers. Then, there’s a workforce crisis that has impacted almost every business sector and forced several types of businesses to reduce hours of operation, curtail services, or both.

There is hope that, with the end this month of the federal bonus being paid to those receiving unemployment benefits, things will improve on this front. But those hopes are countered by the reality that this problem is deep-rooted, and it may be some time before there is real relief.

And there are still more hard choices about whether, when, and how to bring workers back to the office, decisions now made even more difficult by the Delta variant and the great uncertainty about what this fall will be like.

Going back to what we wrote in March 2020 … this region’s business community is, indeed, resilient. And it needs to be. Because, contrary to what we were all hoping, it isn’t any easier being in business now than it was then. And in many ways, it’s even harder.

 

Editorial 2

By
Opinion

A Step in the Right Direction

Late last month, Gov. Charlie Baker, heeding a call from a number of business groups that have steadily pushed for unemployment-insurance (UI) relief, proposed using $1 billion in state surplus money to help ease the burden facing the state’s business community from the widespread layoffs that occurred during the pandemic.

The governor filed a supplemental budget proposal with the Legislature that would set aside the $1 billion for unemployment rate relief as part of a broader $1.6 billion plan to spend the bulk of what remains of a massive, $5 billion state budget surplus from the fiscal year that ended on June 30.

If approved, the measure certainly won’t cover what is expected to be a $5 billion shortfall in the state’s UI fund — a shortfall that the Baker administration and the Legislature decided to address with an assessment that businesses will pay over the next 20 years or more — but it will help reduce the burden on the state’s businesses, and it represents a minor breakthrough of sorts when it comes to this administration and the business community.

Baker’s proposal shows that at least some people are paying more than lip service to the plight of the state’s businesses, which have often been overlooked when it comes to the long list of victims of this pandemic. Despite large amounts of local, state, and federal assistance in many different forms, from grants to loans, businesses in many sectors are still struggling in the wake of the pandemic.

This spring and summer have bought some relief to those in many sectors, including hospitality and tourism, but the road back to normal, pre-pandemic levels of revenue and profit is paved with uncertainty, especially as the highly contagious Delta variant continues to gain strength.

Businesses are, by and large, and to one degree or another, regaining their footing. But this improved stability, if it can even be called that, is threatened by many different forces — including the huge bill that has come due from so many of the state’s residents being forced into unemployment by the pandemic.

As we’ve said before, the state’s businesses didn’t cause the pandemic, and they should not have to bear the brunt of paying the enormous unemployment-insurance burden now facing the Commonwealth — not when the state has roughly $5 billion in federal American Rescue Plan Act funds at its disposal and the huge surplus from FY 2021, resulting from a flood of federal aid and better-than-expected tax revenue.

In announcing his proposal regarding unemployment insurance, Baker said “this UI piece would send a big, positive message to employers and employees that we’re looking to try to help them with what is going to be one of the biggest expenses … because of the pandemic.”

He’s right, but it’s more than a message — it’s a solid step, and hopefully a solid first step — toward addressing the unemployment-insurance deficit.

The Legislature will have a lot on its plate when it gets back in session after Labor Day. We hope the governor’s UI proposal gets the proper consideration and eventually becomes part of the plan to spend down the rescue-plan monies and the deficit.

Things are better for the business community, but many challenges remain, and this proposal is a big step in the right direction.

 

For MGM, an Incomplete Grade

By
Opinion

Editorial

It seems like longer ago — as in much longer — but it was almost exactly three years to this date that the casino era officially began in this region.

MGM Springfield was opened to considerable fanfare that hot August afternoon, and why not? The nearly $1 billion project, by far the largest private-sector development this region had ever seen, was more than five years in the making, and the buildup to that day was immense. There was a parade down Main Street. Some businesses actually adjusted their hours so employees could find parking spaces downtown amid what was expected to be a huge crush of visitors to the downtown area.

The expectations were sky-high for this gleaming resort casino, but almost immediately the numbers — in terms of visitors and revenues — started coming in lower than anyone hoped or anticipated.

And then … 18 months after that grand opening, COVID-19 changed the picture in a profound way.

So here we are, three years later. And in many respects, we’re right back where we were when the parade was making its way down Main Street. We can really only look to the future and project, because there simply isn’t enough data, enough evidence, to properly access MGM’s impact on the region.

Indeed, by now, we should have had a clear picture concerning whether this huge gamble — that’s what this is — has been worth it for Springfield and the region. Instead, because of COVID, we really don’t.

We do know some things. We know that MGM is not going to magically change the neighborhood around the casino and spur large amounts of additional development. That was the hope, but it won’t be the reality — unless things change in a dramatic fashion.

A CVS was built there, and, partly because of that CVS, a Wahlburgers restaurant has opened in that area as well. But, unfortunately, most of the office buildings across Main Street from the casino and in that area remain mostly vacant, with few signs of pending development. There is hope that the transformation of property in Court Square into market-rate housing — yes, MGM is a key partner in that project — will promote other developments of that type and also bring new service businesses to the area. But thus far, we certainly haven’t seen the scope of investments that had been anticipated.

We also know that gaming itself is not going to bring more vibrancy to the downtown area — or beyond, as some had hoped, with people maybe combining trips to the casino with visits to the Basketball Hall of Fame, the Big E, or other attractions. There are some visits to area restaurants, but what we’ve observed mostly is just what many feared — that those coming to gamble are single-minded in that purpose, and they’re getting back in their cars after their time on the casino floor is over and driving home.

The biggest impact from the casino has been its special events — concerts and shows — that bring people to this area, not just for that event, but for a night or even two. Such shows help pack area restaurants and bars and, when combined with other happenings, such as Thunderbirds games, create traffic (desirable traffic) and a buzz about Springfield.

The region was starting to see more of that buzz in the months before COVID hit, but, sadly, there has been very little of it since.

But there is hope that it can return — and soon.

Hope — and expectations — were all we had when the casino opened to all that fanfare three years ago. Now, we don’t really know what to expect, largely because of the pandemic and how it has changed the landscape and will continue to change it. But there is still that hope.

The hope that this $950 million investment will fulfill all that promise and become a real economic force in the region.

Right now, if we had to grade MGM Springfield and its impact three years after the doors swung open, that grade would have to be ‘incomplete.’

Government Must Take Lead on COVID

By Contributor
Opinion

Opinion

By Brooke Thomson

 

Companies from Facebook to Walmart to Google have begun to mandate that their employees get vaccinated to protect against COVID-19. Restaurants throughout the state have also started to require that guests provide proof of vaccination before eating indoors.

As the Delta variant causes COVID-19 infections to increase throughout the country, there is increased pressure on businesses and employers to protect their employees and customers.

Businesses have an important role to play in addressing the health and economic impacts of this crisis. Our businesses have stepped up in amazing ways in the name of public health during the past 18 months. They have enforced masking requirements, shifted to remote and online commerce, closed down to the public, and been on the front lines of the pandemic.

Now, they are again being asked to take responsibility to stop the spread.

But should businesses alone be in charge of leading on public-health emergencies? While federal, state, and local governments took difficult and important steps to protect public health during the pandemic, government leaders now appear to have taken a back seat, relying instead on the private sector to solve public challenges.

A core duty and primary function of any government is to protect the public’s health and safety. The pandemic highlights the need for governments to take their duties seriously. Our elected officials should provide leadership driven by science and evidence, not partisan politics.

State leaders have an opportunity right now to demonstrate this leadership by adopting statewide mask requirements, limiting gatherings in dangerous situations, and providing guidance for businesses to operate safely. Businesses should be focused on their employees and their customers and take their direction on public health and safety from the officials we elect to guide us.

Leaving public-health decisions to private businesses is not the right answer. It is the duty of state and local governments to protect our health. We need leadership on the pandemic to support our businesses and employers.

 

Brooke Thomson is executive vice president of Government Affairs at Associated Industries of Massachusetts.

Hybrid Workplaces Make Sense

By
Opinion

Editorial

 

It takes only a few months, even a few weeks, to establish a habit.

And in under 18 months, some new habits have completely altered the work world. The question now is, for how long?

It’s a well-told story at this point how companies across the U.S. sent their employees home in mid-March 2020 for what they figured would be a few weeks at most. Many worried whether their teams could be productive at home, relying on remote technology they had never used before.

Both instincts were largely wrong. A few weeks quickly became a few months and then well over a year. Now, almost a year and a half later, tens of millions of Americans are still working from home, and in many cases making remote work a requirement, or at least a strong request, when they apply for jobs. In other words, since the work-from-home habit set in, it has proven difficult to shake.

But employers were also wrong — at least in most cases — when they assumed the transition to remote work would be rocky. Thanks to a raft of tools like Zoom and Microsoft Teams, and IT companies that stayed incredibly busy through the first half of 2020 making sure clients’ employees had the equipment they needed — most businesses have found their remote colleagues as productive as they had been in the office, and in many cases happier and less stressed out.

So why not make remote work the new status quo, right?

The main problem lies in company culture and camaraderie — specifically, the fact that it’s difficult to maintain any when everyone is working in a different place; even regular Zoom meetings can’t replace face-to-face collaboration. Employee onboarding is harder, too — it’s tougher for a newcomer to feel assimilated and comfortable on a team when that team is scattered far and wide.

All of which is why hybrid scheduling makes so much sense, and why many companies — those that don’t require their employees to see customers and clients in person, anyway — are moving to a hybrid model (see story on page 25). In short, employees who like the home setting can work there some days, but are required to come in on other days. That way, they still feel less stress and can balance work and life, but can also meet their employer’s collaborative needs.

Some companies are establishing set at-home and on-site days, while others allow their employees to decide each week where they will be, as long as they meet the minimum on-site requirements. Others have their staffs in house most of the time, but allow them to stay home on days when they feel they would work better there.

Formal or informal, hybrid work models are becoming the norm — and might completely transform workplace culture across the U.S., not to mention the trickle-down effects on industries like commercial real estate, office furniture, IT, and even restaurants that cater to lunch crowds.

It’s a transformation that wouldn’t have been possible 20 years ago, and it took a worldwide health crisis to unlock the door. But when Americans figure out that something works well, they tend to stick with it. How permanent will this shift be? Stay tuned.

Setting the Standard

By
Opinion

Editorial

 

Back in 2015, those of us at BusinessWest decided it was time to build on what was already a pretty good thing — our annual 40 Under Forty compilation of rising stars in this region.

That decision was to add another layer of recognition, and another layer of intrigue, to the equation by creating a new award, one that would acknowledge a previous 40 Under Forty honoree who has continued to build on the accomplishments that earned them membership in one of the region’s more prestigious clubs.

Originally, we called this the Continued Excellence Award, which works, but doesn’t tell the whole story. So in 2019, we changed it to the Alumni Achievement Award, which does a better job of explaining what this is about.

It’s about achievement — in one’s profession and with work in the community to address the many issues and challenges facing those who call this region home. And sometimes, one’s profession is addressing those aforementioned challenges.

Such is the case this year, with at least two of the five finalists for the 2021 Alumni Achievement Award, but we’ll get to them in a minute. First, more about the award and what it’s about.

It’s about calling attention to people who are setting the standard when it comes to making a difference and serving as role models for other young people in this region — individuals who continue to find ways to impact quality of life for the better.

There can be only one (or two) winners of this award annually, but we call attention to all the finalists — and really all those nominated for this award — because of the way these stories can, and should, inspire everyone to keep reaching higher and find new ways to give back.

The five finalists this year (see profiles HERE) are:

• Tara Brewster, the “recovering entrepreneur” (former co-owner of the clothing store & Connor) who is now the vice president of Business Development at Greenfield Savings Bank and extremely active within the community, with groups ranging from the Greater Northampton Chamber of Commerce to the YMCA to the Downtown Northampton Assoc. And she’s recently added another line to her résumé — radio personality, as the new host of the Western Mass. Business Show on WHMP;

• Gregg Desmarais, another banking executive — he’s vice president and senior private client relationship manager for TD Private Client Group, a business of TD Wealth — who has made it his business to get involved in the community. Much of that involvement is with Revitalize Community Development Corp., which he has served as chair and helped bring to new levels of success with revitalizing area neighborhoods;

• Anthony Gulluni, district attorney for Hampen County, who has introduced a number of new programs since first being elected to office in 2015, initiatives that include everything from a cold-case unit to an addiction task force; from a campus-safety symposium to a human-trafficking task force; from a youth-advisory board to one of the nation’s first courts focused specifically on high-risk young adults;

• Eric Lesser, the state senator representing the communities that comprise the First Hampden and Hampshire District. Since first being elected in 2014, Lesser has worked tirelessly within the broad realm of economic development, but especially toward the goal of leveling the playing field between east and west in Massachusetts and bringing new opportunities to those who live, work, and own businesses in the 413; and

• Meghan Rothschild, president and owner of Chikmedia, who has steadily built on a résumé of success of business and giving back to the community. In addition to growing her company, she has become an advisor and mentor to many women in business while also donating time and her considerable talents to a number of area nonprofits, volunteering for everything from help with social-media marketing to emceeing an event.

The winner of the 2021 Alumni Achievement Award will be announced at the 40 Under Forty Gala on Sept. 23 at the Log Cabin Banquet & Meeting House. But in our view, all five of this year’s finalists are truly winners. They exemplify all that this award is about, and, more importantly, they set the standard when it comes to being a leader in this region.

Creativity Is Needed Downtown

By
Opinion

Editorial

 

It’s only July, just a few months after the governor essentially reopened the state and things started returning to normal. We have a long way to go before we can even begin to know the full impact of the pandemic on the local business community and individual communities.

But to many, it’s already apparent that new and intriguing uses will have to be found for spaces in the office towers and some of the other buildings in downtown Springfield. It seems clear that many of those already in those office towers will be downsizing or moving out when their leases expire. Meanwhile, there are few if any signs that retail can stage any kind of meaningful comeback, as the current vacancies along Main Street clearly show.

These indicators make it clear that creativity, with a generous amount of patience as well, will be needed when it comes to bringing new life to the properties downtown. Old answers and traditional ways of thinking won’t work. People should be thinking not about what these properties were designed to be — office spaces, for the most part — but what they can be.

If the pandemic has done anything, it has probably only accelerated a process that has been in place for years now. Indeed, downtown vacancy rates have been consistently, and somewhat disturbingly, high, with new inventory, at locations like 1550 Main Street and Union Station, only adding to the challenges facing those owning and managing property in and around Main Street.

There has been some movement in recent years when it comes to office-space absorption — Wellfleet Group moving into several floors in Tower Square, the Community Foundation moving out of Tower Square and onto street-level offices on Bridge Street, and the Dietz architecture firm moving into Union Station — but much of it is the kind of ‘musical chairs’ action that has defined the commercial real-estate scene for years now.

Looking forward, there is certainly potential for downtown to become more of a destination when it comes to office space, especially with regard to the manner in which the pandemic has shown business owners that they don’t necessarily have to be in downtown Boston or New York, paying sky-high lease rates, to conduct business. They can work from anywhere — including Springfield.

Unfortunately, every city in the country is sending out that same message, including communities with larger, deeper workforces, better climate, and more vibrant central business districts.

There are steps being taken to try to convince elected leaders to move some state offices to Springfield, again in recognition that they don’t need to be in Boston or even the Boston area. There is some optimism regarding these efforts, and the argument makes a great deal of sense, but we wonder if there can be any meaningful movement when it comes to agencies that have been headquartered in the eastern part of the state forever — and when it might come.

Beyond these initiatives, it’s clear that some real creativity in the form of imaginative new uses will needed. We’ve seen some already downtown with the YMCA of Greater Springfield, two colleges, and now White Lion Brewing moving into Tower Square, but we’ll need more.

That’s because traditional office-space users — law firms, accounting firms, insurance agencies, financial-services firms, and even nonprofits — will almost certainly need less of that space in the years to come. It’s time to look at a host of options, including residential, hospitality, healthcare, education, and others. Perhaps a live/work type of facility, such as the type being proposed for 1350 Main Street, can be one of the answers.

We’re not sure what the future will look like, but we’re reasonably sure it won’t look like what we have now. So something else will be needed. Something creative.

How to Spend the Stimulus Windfall

By
Opinion

Editorial

 

As the fight against the COVID-19 pandemic winds down, another battle — yes, we can call it that — is emerging on just how the state should spend more than $5 billion in federal stimulus money coming it’s way.

Actually, there are different fronts to this conflict, the first being a large disagreement over who should control this windfall, with both Gov. Charlie Baker and the Legislature believing that they know, better than the other, how this money should be allocated.

We’re not sure either is fully qualified, but that’s another matter.

Let’s get back to the money — $5.3 billion of it, to be exact. This is the state’s share of the proceeds from the American Rescue Plan (ARP). It is, indeed, a windfall, a rare opportunity to take money with no real strings attached to it and put it to some good.

So, naturally, there has to be disagreement over who should control the money and how it should be spent — should we really expect anything else? We hope these differences of opinion can be worked out quickly (probably not, but we can hope), and that the state can commence allocating this money in ways that will create opportunity and address long-standing problems. It appears likely that the proceeds will be divided in some way, with the governor controlling a large portion and the Legislature deciding how to spend what’s left.

Already, the governor has indicated several priorities, including everything from the housing crisis to battling opioid addiction; from infrastructure work to funding the state’s announced vaccine lottery sweepstakes.

While these are worthy causes, to be sure (although we certainly believe there are better ways to spend $6.5 million than a lottery), money needs to be set aside to help the businesses of this state, many of which are still battling to fully recover from the pandemic. While many business sectors are starting to rebound, especially the hospitality industry after a brutal 15 months of stagnancy and then several levels of reopening, many individual businesses are struggling to get all the way back.

One big obstacle is workforce. Companies across all sectors are struggling to find good help, and an infusion of funds into training programs would certainly help address the ongoing labor shortages. As economic-development leaders have said for years, the problem isn’t necessarily with the numbers of people in the workforce, but the skills they possess.

Meanwhile, we share the business community’s disappointment that the governor remains opposed to allocating some of the money from the American Rescue Plan to pay for the huge deficit in the state’s unemployment insurance fund caused by the deep and very sudden job losses during the pandemic; more than 30 states have already committed to using some ARP funds for this purpose.

Baker has instead signed legislation that spreads the hike in the so-called solvency assessment over 20 years and covers $7 billion in unemployment payments tied to pandemic-related job losses.

We don’t believe that simply spreading the payments over 20 years is a real solution to this problem. The pain remains — it’s just dispersed over two decades instead of all at once. While the payments will be smaller, they will still be a burden to businesses that are, as we noted, still struggling to fully recover from the pandemic and don’t need to pay for a problem that was not of their doing.

When it comes to the ARP windfall, the phrase ‘good problem to have’ certainly comes to mind. Indeed, deciding how to allocate $5.3 billion is a test for which there are few truly wrong answers.

But it is incumbent on the governor and the Legislature to come up with the best answers, and some of these involve a business community that is far from out of the woods when it comes to this pandemic and the many challenges that remain.

Reflections on Juneteenth

By Contributor
Opinion

Opinion

By John Regan

 

Associated Industries of Massachusetts (AIM) and the Commonwealth’s business community join with our fellow citizens in celebrating the first official state observance of Juneteenth, which commemorates the day in 1865 — June 19 — that the last enslaved people held in Galveston, Texas learned of their freedom, two years after President Lincoln issued the Emancipation Proclamation.

The day is both an historical observance and an opportunity to reflect on the accomplishments of African-Americans here in Massachusetts and throughout the nation. It is also a reminder of an event largely ignored by history texts, much like the Tulsa massacre that took place 100 years ago.

AIM — as an organization committed to diversity, equity, and inclusion — regards the day as a symbol of the importance of creating an economy that provides opportunity for all the citizens of Massachusetts.

“The Juneteenth holiday is a long-overdue teaching moment about the contributions and history of a people who were instrumental in building the country. Reminders of what has kept us apart are necessary to forming bonds that bring us together moving forward,” said Donna Latson Gittens, founder of MORE Advertising in Watertown and a member of the AIM Executive Committee.

Gov. Charlie Baker signed a bill last July making June 19 a limited-scope holiday, analogous to Patriots’ Day, Presidents’ Day, and Martin Luther King Day. Private employers may elect to observe the day but are not required to do so. Creation of the state holiday came amid a national racial reckoning following the death of George Floyd and several other black people during encounters with police.

Employers plan to mark Juneteenth in various ways.

AIM member National Grid announced that all of its U.S. employees, including 6,336 employees in Massachusetts, would be given the Friday before Juneteenth off as “a symbol of our dedication to honoring black Americans who have suffered the impacts of racism throughout U.S. history,” according to Natalie Edwards, the company’s chief diversity officer.

The company encouraged its workers to use the time off as “a day of reflection and to celebrate black communities, particularly in the neighborhoods where they live and work.”

AIM members New Balance, Foley Hoag, Boston University, Harvard University, and Morgan Memorial Goodwill Industries have also instituted Juneteenth as a paid holiday. Other members, such as Fidelity Investments and Santander Bank, are conducting or sponsoring online events to discuss diversity and financial issues in communities of color.

When Baker signed the law last July, it was in recognition of “the continued need to ensure racial freedom and equality,” he said. “Juneteenth is a chance for us all to reflect on this country’s painful history of slavery and the systemic impact that racial injustice continues to have today. It is also an opportunity to recommit ourselves to the goal of creating a more equal and just society.”

 

John Regan is president and CEO of Associated Industries of Massachusetts.

Springfield Needs Its Symphony

By
Opinion

Editorial

 

Going back to the start of the pandemic, we expressed concern for the survival of not only the businesses in Springfield and across the region, but also the institutions that contribute to the quality of life we all enjoy here.

That’s a broad category that includes a number of museums, the Basketball Hall of Fame, the Springfield Thunderbirds and other sports teams, and arts venues ranging from Jacob’s Pillow to Tanglewood to the Springfield Symphony Orchestra. All of them are part of the fabric of this community.

Among all those, perhaps the one we feared for the most was the symphony, which has seen several changes in leadership over the past decade and has seemingly struggled to attract younger and broader audiences. If there was an institution that couldn’t afford to be on the sidelines, out of sight, and in many cases out of mind, it was the SSO.

“Reading between all the lines, it appears that concerns about the future of the venerable, 75-year-old institution are very real and quite warranted.”

These fears gained some legitimacy last week when musicians who play for the orchestra issued a press release that doubled as both warning and call to action. These musicians, some of whom have been playing for the SSO for decades, raised questions about how committed the SSO’s board is to everything from giving long-time maestro Kevin Rhodes a new contract to a 2021-22 season for the SSO. They asked for “an encore, not a curtain call.”

The SSO’s interim executive director, John Anz, responded by saying many of these issues are intertwined, and the orchestra cannot proceed with a new contract for Rhodes or a 2021-22 season until negotiations with the musicians’ union are resolved.

Reading between all the lines, it appears that concerns about the future of the venerable, 75-year-old institution are very real and quite warranted.

We sincerely hope the SSO is able to rebound from what is certainly the greatest challenge of its existence. Springfield needs these institutions to become the destination that we all hope that it can be.

Indeed, many things go into making a community livable — jobs, neighborhoods, schools, a thriving downtown, and, yes, culture. Springfield has already lost CityStage; it simply cannot afford to lose another thread of its fabric.

This is especially true as the state and the nation emerge from this pandemic. We’ve heard the talk that large urban areas are now less attractive to some segments of the population, who are now looking more longingly toward open spaces and less crowded areas. And we’ve seen dramatic evidence of this in our own real-estate market.

Springfield is to emerge as a player in this new environment, a true destination, then it will need institutions like the SSO to create that quality of life that both the young and old are seeking out as they search for places to call home.

The SSO has certainly been rocked by this pandemic. Emerging from it will be a stern test. We certainly hope it can move forward and be part of Springfield and this region for decades to come.

Andy Yee: An Appreciation

By
Opinion

Editorial

By George O’Brien

 

Andy Yee

Andy Yee

Andy Yee, who passed away late last month, was the true definition of a serial entrepreneur. Even though he had a number of businesses, especially restaurants within the Bean Group, he was always looking for that next challenge, that next opportunity.

He took on each project with an abundance of energy and enthusiasm that was as inspiring as it was contagious. And many of his undertakings were not just business ventures — they were game changers in our local communities, difficult yet successful efforts to save institutions such as the Student Prince in downtown Springfield and the White Hut in West Springfield from being relegated to the past tense.

In 2015, BusinessWest named Yee and several of his business partners, including Peter Pan Chairman and CEO Peter Picknelly and Kevin and Michael Vann, as Difference Makers for their efforts to save the Student Prince. And that title certainly fit him. He was a difference maker as a business owner and entrepreneur, as a family man, and as a leader in the community.

“He was a difference maker as a business owner and entrepreneur, as a family man, and as a leader in the community.”

The Student Prince was struggling when Yee and Picknelly stepped forward. Theirs was a business proposition, to be sure, but it was much more than that. It was an effort to save something that had become a part of the fabric of the city and of the region. It was more about community than it was about dollars and cents — although Yee, a very smart businessperson, was also focused on the dollars and cents as well.

The same was true with the White Hut in West Springfield — a different kind of restaurant, to be sure, but with a very similar brand of emotional attachment. Today, both establishments live on, and Yee is a huge reason why.

As a business writer who interviewed him dozens of times over the past two decades, I was always struck by how energetic he was, how hands-on he was in every endeavor he became involved with, and how he always had one eye on the present and the other on the future, trying to anticipate what was to come and be ready for it.

That is the essence of a leader, and that’s another word that fits Yee like a glove.

His latest endeavor is a restaurant project in Court Square in Springfield, another landmark that needed someone to step forward and give it a new direction, a new future. Yee was part of a large team doing just that.

We sincerely hope this project moves forward. It will be difficult without his leadership, his enthusiasm, and his ability to get the tough projects done. It will be a fitting tribute — yet another one — to how he had the ability to not only open a business, but change a community for the better — and make a huge difference.

He will be missed.

The ‘New Normal’ Is Here

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Opinion

Editorial

The light at the tunnel that we’ve all been waiting for is essentially here.

Gov. Charlie Baker’s announcement last week that he was eliminating virtually all COVID-19 restrictions on May 29, in time for Memorial Day weekend, puts Massachusetts in the final stage of the reopening plan he announced almost exactly a year ago, which he dubbed the ‘new normal.’

But while this announcement is certainly cause for celebration and optimism, the local business community is, in many ways, still in the tunnel. COVID is not to be referred to in the past tense yet, and there are still a number of challenges to overcome, including some new ones.

Indeed, as the story on page 10 reveals, the governor’s announcement brings some anxiety to go along with the joy and relief that most business owners are certainly feeling. That anxiety comes in many forms, from finding adequate supplies of good help (a challenge confronting those in virtually every sector of the economy) to tackling the daunting task of bringing employees back to the office, to dealing with loosened restrictions on masks, which are causing confusion and considerable doubt when it comes to the ‘honor system.’

In many ways, as welcome as the governor’s announcement was and is, it’s a fact that many businesses are simply not ready to turn back the clock to the fall of 2019, when the world had never heard that word COVID.

What makes things even more complicated is that no one knows just how ready the consuming public is to turn back the clock and pick up where things left off 15 months ago. It’s safe to say it might take a little time for both constituencies to feel comfortable within the realm of the new normal.

Here’s what we do know: this region’s business community has shown remarkable resilience since the pandemic arrived in this region. We’re all tired of hearing and uttering that word ‘pivot,’ but that’s exactly what business owners and managers did, whether they’re in hospitality, manufacturing, financial services, healthcare, or any other sector.

The new normal means pivoting again. In some cases, it will actually mean simply returning to how things were in late 2019, and that can be challenging enough given the abundance of ‘help wanted’ and ‘we’re hiring: $250 sign-on bonus’ signs we’re seeing in ever-increasing numbers, as well as the skyrocketing price increases involving everything from food products to lumber to gasoline (see story on page 6).

For most businesses, though, things won’t ever be just as they were before COVID. They’ve learned new and, in many instances, better ways of doing things — out of necessity. Meanwhile, many employees will continue to work remotely, changing, perhaps forever, the dynamic of the modern office.

As we said, the region’s business community will have to pivot once again. Based on how well it did the past 14 months, we believe it will adjust quite well to the new normal. We’re not out of the tunnel yet, but the light is very, very close.

Rolling with the Changes

By Contributor
Opinion

Opinion

By Sean Hogan

 

As COVID-19 winds down and we begin to go back to our normal lifestyle, I find myself asking what is next.

Let’s look back and see what has changed in the business world over the last year. The economy came to a halt, there was a major strain on the supply chain, restaurants and bars were closed, and business stopped. Certain industries, including IT, thrived, but COVID affected everyone; it missed no one.

We at Hogan Technology had to embrace meeting, selling, and collaborating over videoconferencing. This was a major shift in our protocol. We were hesitant at first, but there was not much of an option. We, like everyone else, jumped on the Zoom bandwagon. I quickly realized that Zoom had some security issues, and we moved all our collaboration to Microsoft Teams. Teams has been easy to use and efficient, and it had integration with our current voice platform. In the beginning, we were limited to viewing four participants; thankfully, MS made some changes and improved the capacity for our Teams meetings.

I have been managing and selling for more than 34 years, and shifting to video meetings with clients at first was clumsy. I was conditioned to prepping for my meetings, driving to the client site, waiting in the lobby, and then meeting face to face with my client. It took a few video calls to get into a process, but then I started to see how efficient and productive they could be. The ability to bring in my team to collaborate with my clients has worked exceptionally well.

Our sales and discovery process has completely changed, and this old dog has learned some new tricks. We now send out invites that allow our prospects and clients to log into our videoconference, and I can introduce my team and our vision. I then hand over the presentation of any software or applications to my tech team. Once the presentation is done, I can share or review any proposals or quotes though a screen share. This allows me to go line by line and make sure the client completely understands our solution.

This new style of sales has worked very well. We are printing far less, engaging the client more productively, and saving fuel and time by not driving to the site. We will still gladly meet on site, but if the client is open to meeting online, that will be our first step. Video collaboration and presentations are here it stay, and we welcome and embrace the cost-savings technology.

There were lots of new terms thrown about during the pandemic, but the two that made me think were ‘new normal’ and ‘pivot.’ The new normal, in my mind, is constant change. I like to think we all embraced the new normal, seeing that we are engaged in technology, which is constant change.

I think ‘pivot’ is what we have always internally termed ‘nimble.’ One of the advantages of being a small business is that it does not take much for us to turn our ship; we are not a large tanker, but more of a go-fast boat. We can turn on a dime, we can make changes without having to get board approval, and we can move fast when we need to get out of our own way. COVID taught us all how to be nimble and how to change the way we do business. I am amazed and proud to look at the business community and see how people have pulled together and toughed out a brutal year.

Yes, we all pivoted, and we all learned to deal with the new normal, but, most importantly, we all got up, went back to work, and supported each other.

 

Sean Hogan is president of Hogan Technology.

A Step Toward Normal, but…

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Opinion

Opinion

 

Going back a full year now, when Gov. Charlie Baker first started reopening this state in the wake of the COVID-19 pandemic, he has taken a slow (some would say too slow) and cautious (many would say overly cautious) approach to the process.

And this pattern continues with his recent announcement that restrictions on many types of gatherings and businesses will be eased later this month, and that they will be lifted completely on Aug. 1.

From a glass-half-full perspective, this is the news all those in the business community have been waiting for — movement back to something approaching normal when it comes to where people can go and what they can do. In the class-half-empty category, ‘normal’ is coming to other states much sooner.

Indeed, many states (Florida and Texas have led the way) have been fully open for some time now. And in the Northeast, states like New Hampshire have lifted most, if not all, restrictions and are fully open for business. Even New York, which has been as slow and cautious as Massachusetts, will fully reopen for business on July 1.

While, in many respects, cautious is good, we hope the governor will look at the data and the trends when it cases to cases, hospitalizations, and vaccinations, and move up his timetable for fully reopening Massachusetts. For many businesses, especially those in the tourism and hospitality sector, summer is their time to shine. Losing another full month or more when other neighboring states are wide open is just one more heavy burden to bear.

Meanwhile, for restaurants, yes, the announced easing of restrictions will help, but they are still handicapped by the rules in place at a time when many are still struggling to keep the doors open.

But … getting back to the glass being half-full, businesses in Western Mass. can now clearly see a light at the end of the tunnel. They can see ‘normal’ — and not with a telescope. It’s right around the corner.

We can see a normal Big E coming in September. We can see tourists flocking back here for foliage season. We can see businesses in the area’s many college towns — the hotels, restaurants, and bars — turning back the clock to 2019. We can see the Thunderbirds playing to a packed house at the MassMutual Center. We can see the Bright Nights Ball and a host of other events in MGM’s ballrooms.

It’s a nice picture, and it won’t come together as easily as we might like. We have to hope people find the confidence to go back out and do all the things they did before COVID altered the landscape; recent evidence suggests they will. And businesses have to hope they can find the hired help — and everything else they need, from chicken to lumber to steel — to accommodate the surge in business they hope is coming their way, or is already here.

Aug. 1 is still more than two and a half months away. That’s an eternity for struggling businesses. We’re hoping that ‘normal’ might come sooner — and the governor says he might adjust his timetable if there is enough science to warrant it) — but at least we can now see it on the horizon.

Saluting the Region’s Rising Stars

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Opinion

Editorial

When BusinessWest launched its 40 Under Forty program in the spring of 2007, there were many goals attached to that initiative.

First and foremost, we wanted to introduce 40 rising stars to the business community here in Western Mass. Second, we wanted to tell some really inspiring stories about people doing incredible things — both at their jobs and in their community. Also — and this was not an official goal, to be sure — we wanted to assure the sometimes cynical members of the older generations that there were strong leaders in place for this region for the years and decades to come.

As we introduce the class of 2021, all these goals come to the forefront. This is a tremendous class of young leaders, one that speaks volumes about our region. Indeed, Western Mass. is diverse, and its business community is also diverse, with a strong mix of ventures across all sectors, from technology to healthcare; hospitality to agriculture. Its up-and-coming leaders have chosen a number of different paths; some are entrepreneurs, others lead nonprofits, still others are professionals in fields ranging from law to accounting; marketing to financial services. Some are professionals who are also entrepreneurs.

The class of 2021 reflects all this. It reflects something else, as well — the willingness of these young leaders to step forward, serve their community, and address the many issues confronting our region, including homelessness, poverty, illiteracy, access to healthcare, and more.

The 40 remarkable stories starting on page 25 illuminate all this. They tell of young people excelling in their chosen field, and people who are making it their business to give back.

People like Dr. Jessica Bossie, the highest scorer among the nearly 200 nominees, who serves as the primary-care doctor for a program called Health Services for the Homeless and brings medical care and large doses of compassion to that population.

Or Claudia Quintero, who turned her passion for social justice — and her gratitude for U.S. citizenship — into a legal career advocating for the rights and well-being of migrant farmworkers.

Or Crystal Maldonado, who never gave up on her dream of writing a book, and, in doing so, shared her own life and perspective with teenage readers who don’t often see themselves reflected in mainstream media.

Or Matthew Kushi, an administrator at the Isenberg School of Management at UMass Amherst who also grows hot peppers and chairs Hadley’s Agriculture Commission.

Or Julissa Colón, who struggled to finish college after having her first child and now helps others achieve their dreams through Holyoke Community College’s Gateway to College program.

Or Brendon Holland, who brought a cutting-edge skillset to regional public-access television and helped keep a city and its residents connected during the critical months of the pandemic.

Or Chris Thibault, the first-ever posthumous winner of this award, who will be remembered for using his camera to help others tell their stories, but especially for how he shared his own — a courageous battle with cancer.

There are nearly three dozen more stories of this nature involving the class of 2021, a class that showcases all that is good about this region — and all that is good about the young leaders now making their mark.

When Stimulus Backfires

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Opinion

Editorial

 

Let’s start by saying there is no debating that most of the economic-stimulus programs created by local, state, and federal governments have been extremely effective in helping businesses of all sizes and moving the economy forward at a time of extreme — as in extreme — duress.

Indeed, programs like the Paycheck Protection Plan initiative have provided an absolutely vital lifeline, without which many small businesses in this region and across the country would simply not be here. Other programs have benefited healthcare providers, specific sectors of the economy, and municipalities.

That said, some stimulus has actually backfired on business and the economy, and that’s especially true when it comes to federal unemployment benefits — checks that were designed to help those who lost their jobs to the pandemic, but have had serious unintended consequences in the form of people who are simply staying out of the job market because they can make more money by not working and are making the no-brainer decision to do so.

This is not a news flash; it has been going on for roughly a year now. What is a news flash — sort of — is the extent to which these unemployment benefits are stifling the economy just as the ingredients are there for it to start really taking off again.

Indeed, as the story on page 6 relates in great detail, businesses across a number of sectors are struggling mightily to find the help they need. And for some, the inability to find this help could threaten their ability to expand and take on work that could come their way.

Stories abound about pool-installation companies already booked solid for this season and simply unable to take on any more projects, even though they are there for the taking; home-improvement companies having to turn down lucrative projects because they just don’t have the workers; and restaurant owners looking ahead to better times with a mix of anticipation and dread, with the latter involving great uncertainty about whether they will have enough bodies to handle the surge in volume they hope — and believe — is coming.

Not all of this is the result of the unemployment payments contained in the federal stimulus package. Indeed, many employers were struggling to find adequate supplies of help before anyone had to think about hanging a mask from the rear-view mirror of their car. But these benefits have made the situation exponentially worse.

And it’s not just the benefits, especially the additional $300 per week contained in the stimulus package, that are causing the problem; it’s the inability, or the unwillingness, of state unemployment divisions to enforce the simple rules that pertain to unemployment benefits.

Unemployment was designed to help those who have lost their job and cannot secure another one. Those who receive these benefits are expected to maintain a vigilant pursuit of new employment opportunities, and accept one when a proper fit is found.

These days, that is simply not happening. People are staying on unemployment because, well … why wouldn’t they? Especially when they could earn as much, if not more, by not working.

Many employers are already counting down the days until September, when these benefits expire, thinking matters might then return to normal. This is wishful thinking — this Congress may well extend the benefits again, given the way things are going — and not where their energies should be placed.

Instead, business leaders should be lobbying those in power — both in Washington and Boston — to do something about this problem now, before things get worse and before the recovery from COVID becomes further stalled.

As we said at the top, most of the federal, state, and local stimulus has done what is was designed to do — help people hurt by COVID weather the storm. The unemployment benefits were designed to do the same, but the unintended consequences have now greatly overshadowed the good that’s been done.

This is a case of stimulus gone awry, and something has to be done.

Editorial

By
Opinion

Cannabis Business Is Riding High

Back in November — only two years after adult-use marijuana became legal in the Commonwealth — the Massachusetts Cannabis Control Commission reported sales had surpassed $1 billion, and the state had collected some $200 million in taxes from the adult-use windfall. At the time, employment in the adult-use cannabis field in Massachusetts was approaching 6,000. It’s likely significantly higher now.

The COVID-19 impact? Not much, really. Except during those weeks from March through early May 2020, when most businesses of all kinds were closed to the public, dispensaries have reported steady revenues right through the pandemic. While the supply-chain issues and other economic impacts that followed in the wake of COVID did slow the pace of progress at some projects in various stages of development, customers are still lining up to get into the shops currently open.

In short, some industries are more resilient amid shifting economic tides — and public-health emergencies, it turns out — than others, and cannabis has proven, so far, to be one of them.

One lingering question, however, is how the rapid proliferation of dispensaries and other cannabis businesses will impact sales at each individual shop — in other words, will supply begin to outstrip demand and make this a riskier or less desirable industry to enter than it was a year ago?

To hear the business owners themselves tell it, the answer is no. Take Northampton, for example. Both Noho-based business owners we spoke with for this issue’s cannabis focus say that city has become such a destination for cannabis that each new enterprise just adds a little more texture to a robust ecosystem — and draws in even more customers from outside.

After all, if a city is known for its restaurants, no one ever says there are too many, or that it’s a bad idea to open another.

The heightened competition has, of course, forced new business owners to think critically about how to best stand out from the crowd, and the stories starting on page 29 are good examples of how they’re doing exactly that.

Cannabis has been a boon for the state’s coffers, no doubt about it. But it continues to be a strong driver of employment as well, one with a still-undefined ceiling. And it’s begun to add real vibrancy to the economy and lifestyle of communities that have been welcoming hosts.

In short, this is still fertile soil. After a year of economic news that hasn’t always been bright, that’s something to celebrate.

Tourist Economy Is Coming Back

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Opinion

Editorial

Every sector of the economy, and every business, large or small, has been impacted by this global pandemic. But this region’s large and important hospitality and tourism sector has easily been the hardest-hit.

The hotels, restaurants, tourists attractions, event venues, and cultural institutions have been pummeled by this crisis. Some have not survived; those that have are battered and bruised, and that goes for small mom-and-pop operations, the $1 billion MGM Springfield resort casino, and everything in between.

As the calendar turns to April, though, there can finally be sentiment that the very worst is behind this sector and that better times are to come — though myriad challenges remain.

First, the good news. As various stories in this issue reveal, there are positive signs and ample amounts of optimism about what’s in store for this sector. Tanglewood, Jacob’s Pillow, and other renowned cultural institutions have announced that, after canceling everything (or staging only virtual performances) in 2020, they will have schedules of live offerings this year — although they will be different.

Meanwhile, there is a great deal of talk of pent-up demand, and new terms working their way into the lexicon like ‘revenge spending’ and ‘vacation retaliation.’ All this points to a summer — and a year — when people who spent their time off in 2020 (if they had any) on the back deck, might instead be spending some money taking in all that Western Mass. has to offer.

This good news is tempered by the hard reality that we just don’t know what this year portends when it comes to people getting back in the water — literally and figuratively. There is pent-up demand, yes, and many people certainly have money to spend. But when the time comes, will people be willing to gather in large numbers? Will there be a Big E, and if so, how many people will attend? Will people return to the casino? And when can MGM again stage the live events that bring so many people to downtown Springfield? Can the Basketball Hall of Fame bounce back from a dismal year? Will people have an appetite for crowded (or more crowded) restaurants? When will conventions return?

These are just some of the questions that will determine the short-term fate of the region’s tourism and hospitality industry. For the long term, we know the health and well-being of this sometimes-overlooked sector is absolutely critical to the economy of this region, and to its quality of life.

Thankfully, there are many signs that it’s ready to officially roar back to life.

Preparing Work for Women

By Contributor
Opinion

Opinion

By Sandra Doran

Work has always been a women’s issue. Whether we work or not, the types of jobs we do, how much we are paid, and how far we can advance, it’s all shaped by our experiences as women, and this, in turn, shapes the central mission at Bay Path University. Therefore, it has been hard to see how deeply the pandemic has thwarted working women. In January, the National Women’s Law Center calculated the percentage of women working at 57%, the lowest it has been since 1988.

As the conversation grows louder, and the issues more pressing, this is our moment to seize, for making changes that are long overdue. At Bay Path, we’re doubling down on our commitment to preparing women for the career world, but the pandemic has confirmed it’s high time that businesses, organizations, and policymakers get on board with preparing the career world for women. Here are a few places to start.

• Support mothers. Over the last 30 years, childcare costs have increased by 70%, while real median wages have increased by a scant 7%. The cost of childcare in the U.S. and the allegiance to traditional gender roles still forces women into the slow lane of career growth and pushes many to take the off-ramp. Taking time away from one’s career puts women at risk of re-entering the labor market at a lower entry point than when they left, a scenario that underlies our persistent wage gap. The experiences of mothers during the pandemic has led to renewed calls for subsidized childcare, something every other industrialized country in the world offers. At the same time, the nearly universal pivot to remote work arrangements should inspire us all to develop schedules and create resources that expand the flexibility we can offer.

• Expand access to degrees for more women. It’s never been more important for women to get their degrees. It still holds true that women with bachelor’s degrees will earn $630,000 more over the course of their careers than high-school graduates. Women with graduate degrees earn $1.1 million more. Most women who left the workforce exited the hospitality, health-services, and retail sectors, where the majority of jobs do not require a degree and the majority of workers don’t have one. Due to their disproportionate representation in these sectors, fewer black and Hispanic women are working now than any other demographic. Creating access to degrees and providing the support to help women complete them can have a transformational impact on the types of jobs women fill and the amount of money they earn.

• Put more women in charge of more companies. Today, there are actually fewer women in rising management roles than there were in 2019, even though having more women in leadership roles isn’t just good for women, it’s better for business. Although men and women start in roughly the same positions, by age 30 to 44, 36% of men become supervisors or managers, compared to 30% of women. By age 45 and older, 12% of men ascend to an executive-level role, while only 6% of women do. A Harvard Business School study found that having women represent 30% of corporate leadership leads to a 15% increase in profitability for a typical firm. Researchers attributed this to “increased skill diversity within top management,” which translates to an ability to encourage better employee performance and stronger recruitment, promotion, and retention of talent (the women who otherwise would have left due to gender discrimination).

• Shift the ways we define ‘women’s work’ and what it’s worth. In 2017, 64.2% of mothers were the primary or co-breadwinners for their families. Our jobs are central to supporting our families and ourselves, yet they are routinely undervalued and underpaid (see teachers, 76% women; social workers, 83% women; and healthcare workers, 85% women). Questions to consider: if more men entered these fields, as they did with computer programming, a skill once tied to women’s secretarial roles, would wages go up? If they did, would more men opt to enter these fields? This chicken-egg scenario inevitably leads to the same takeaway: these critical roles need higher pay to truly represent their value to our society.

We’re living in remarkable times, when we’re not just dreaming of change, we’re demanding it — for our daughters, sisters, friends, co-workers, and, obviously, our students. Women’s employment isn’t expected to return to pre-pandemic rates until 2024 (men will get there in 2023), and the road back can’t be paved only with good intentions. A recovery won’t do — what we really need is a reimagining.

Sandra Doran is president of Bay Path University.

MGM Must Get Back on the Ramp

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Opinion

Editorial

When everyone gathered on Main Street that hot August day back in 2018 to mark the opening of MGM Springfield, no one really knew what to expect or what the future would bring.

Certainly, no one could have predicted what the scene would be like two and half years later.

Indeed, the COVID-19 pandemic took a resort casino that was ‘ramping up’ — that’s the phrase we kept hearing over and again from past and present leaders — and knocked it completely off the ramp. The casino was shuttered for several months, and when it reopened, it was only at a fraction of its full capacity. Until very recently, the hotel and most of the restaurants were closed, and the event venues were quiet and dark.

These days, the capacity is not quite half and destined to keep inching higher. The hotel is open on weekends, and the sports bar has reopened its doors as well. But huge question marks surround just when and under what circumstances the casino complex will again be able to host concerts, shows, and other large-scale gatherings.

In some ways, we’re all back where we were almost 32 months ago … wondering what will happen and just what the casino will mean for Springfield and this entire region. That’s where we are as MGM Springfield tries to get the ramping-up process back to something approaching the plane it was on before the world stopped almost exactly a year ago.

We’ve said this before, and we’ll say it again … this region needs MGM to make a solid comeback from all that COVID has tossed at it. It needs to come, well, roaring back and play an important role in restarting, if that’s the right word, the renaissance that Springfield was enjoying before the pandemic made Main Street a quiet, almost depressing, place to be.

And a lot will have to go right for such a comeback to happen. First, people will have to regain the confidence needed to gather in large numbers. In other parts of the country, and especially Las Vegas, where the casino business is coming back to life, the signs are quite positive. ‘Pent-up demand’ is the phrase we’re hearing a lot these days, and the hope — the expectation — is that there will be large quantities of it.

But Springfield’s casinos — and all the state’s casinos — could use some help as they proceed back up the ramp. And the state Legislature could deliver some in the form of sports betting.

Lawmakers have been dragging their feet on this issue for years now, and we cannot understand why. Sports betting, if done right, would provide another, potentially huge revenue stream for the state’s casinos at a time when they really need it.

New Hampshire and Rhode Island now have sports betting, and Connecticut is poised to join the fray. Much-needed tax dollars are going to other states or the illegal-betting arena, and Massachusetts simply cannot afford to keep sitting on the sidelines. To borrow still another sports phrase, it needs to get in the game, and soon.

Reflecting once more on that day in August 2018, the expectation among many was that MGM Springfield would not solve all the region’s ills and would not magically transform the region overnight. Instead, it would be a player — a large and important player — and an economic engine.

The pandemic has certainly altered the timeline, but hopefully it hasn’t changed those expectations, or the probability they can be realized.

One Year After the Shutdown

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Opinion

Opinion

By Nancy Creed

As we mark the one-year anniversary of the state of emergency in Massachusetts, we continue to take steps on our path forward.

Last week, legislators reached agreement on a COVID-19 package to support our business community as it begins to recover from the pandemic. The package would include two items that the Springfield Regional Chamber has been aggressively advocating for: unemployment-insurance rate relief and tax relief from the Paycheck Protection Program (PPP) loan proceeds.

The agreement calls for a freeze in the unemployment insurance (UI) rate at the current Schedule E rate for 2021 and 2022, limiting the increases employers will see. Without passage, employers could see the unemployment insurance rates increase from an average of $539 to $866 per employee. This legislation would hold the average UI rates to $635 per employee in 2021 and $665 per employee in 2022.

The agreement would also exclude PPP loan amounts forgiven in 2020 from taxable gross income for those small businesses that are organized as pass-through entities. While Congress excluded these loans from federal taxation, without legislative action, these loans would have been taxed as income at the state level.

The agreement would also guarantee paid leave to employees who are sick with COVID-19, required to quarantine, or need to take time off to get the vaccine. As well, it will allow for state borrowing, through a temporary employer assessment, to ensure the solvency of the UI trust fund, which is projected to have a $5 billion deficit by the end of 2022, triggering higher increases in unemployment-insurance rates to remain solvent.

We applaud the Legislature for recognizing the long-term economic impact this pandemic has had on our employer community and to take these steps to support its recovery.

The federal government also recently took action, with the Senate approving a $1.9 trillion federal stimulus package. One item your chamber supports in this package is the state and local aid to help our region’s cities and towns as they deal with their own economic hardships resulting from the pandemic. As specific details around this aid remain to be seen, we will continue to watch this closely, as we believe this funding is critical to the fiscal health and stability of our communities.

The CDC has also issued much anticipated guidance for individuals who are fully vaccinated. As of last week, more than 715,000 people in Massachusetts have been fully vaccinated, ranking Massachusetts first among states with 5 million people or more for total COVID-19 vaccine doses administered. Massachusetts is currently in phase 2 of its vaccination plan, with teachers becoming eligible last week.

We have been through the wringer, and we know we have a ways to go, but these are all significant steps on our road to recovery and, we hope, the first of many more to come.

Stay safe and stay well. We can — and will — get through this together.

 

Nancy Creed is president of the Springfield Regional Chamber.

Lessons from a Year of COVID

By
Opinion

Editorial

In some ways, it seems like it just yesterday. In other ways, it seems like years ago.

That’s what the last 12 months of COVID-19 — 12 months unlike anything any of us have experienced before — have been like. They’ve gone by fast, but it’s been a long, as in long, year.

As with the Kennedy assassination (for those of us old enough) and with the morning of 9/11 for those who are younger, everyone remembers where they were and what was happening when the governor put his stay-at-home order in effect. For many, it meant packing up (if they hadn’t already packed up) and leaving the office for what we all thought might be a few weeks, or a few months at most.

We soon learned that those projections were way off base and that we would be living with the pandemic and all the hardships that came with it for a long time.

In the months that followed, we would learn much more, as our roundtable discussion with six area business leaders (see story on page 6) reveals. We learned that we didn’t have to be in the office, necessarily, to get our jobs done. We learned new ways of doing things. We learned to embrace technology — well, because we didn’t have a choice. And we all wondered why we didn’t embrace it earlier.

We learned some other things, as well. We learned that life is hard, and not just during a pandemic. But COVID, by exacerbating things, made it clear that work/life balance isn’t just a buzz phrase; it is a serious, serious challenge and something that employers now understand better than they ever did before.

As our panelists indicated, we all learned to listen a little more than we used to, and we learned how to more empathic to the needs and challenges of employees. Many of us learned how to be better managers because, in short, that’s what had to happen. We learned that making sales quotas, hitting deadlines, and reaching quarterly goals are not the only things that keep people up at night.

We also learned how to pivot — again, because we had to — and look for new ways to carry out our missions, make payroll each week, keep people employed, and keep the doors open.

In short, we’ve learned a lot — about pandemics, business, life, and ourselves. This is not a silver lining to this horrible crisis — there are none of those. It’s simply reality.

What’s also reality is that the hard decisions and the myriad challenges are not over — not by a long shot. Now, we have to determine how we’re going to execute all these things we’ve learned when life and work go back to normal, or something approaching it.

We have to decide how our businesses will function when it’s safe for everyone to come back to the office or the classroom or the restaurant. We’ve learned that people can work from home, but is that the best place to work — for the company and the employee? And there are other questions, including those related to how we can continue to listen, understand, and be empathic when we’re no longer in crisis mode.

These are just some of the things we need to think about as we mark a dubious milestone — a year of coping with a global pandemic.

It’s been a year to learn, reflect, adapt, and change. And we’re far from being done with any of those things.

New Soldiers’ Home Gains Momentum

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Opinion

Opinion

Make no mistake about it, when it comes to the tragic COVID-related deaths at the Soldiers’ Home in Holyoke almost a year ago, there are no silver linings. There is nothing that can fill the void left by lost loved ones, and nothing that can relieve the anguish visited upon staff members who had to endure that catastrophic sequence of events that led to the deaths of at least 76 veterans.

But sometimes, such tragedies eventually lead to progress, to improvements, to new and better ways of doing things. And it appears that this may well be the case with the Soldiers’ Home.

Indeed, out of the ashes of the calamity of last spring have emerged plans for a new, eight-story Holyoke Soldiers’ Home that will replace the 70-year-old facility that is, in many ways, inadequate and obsolete. Last week, the Baker-Polito administration filed a $400 million bond bill to move forward with the construction of the new home, the next big step in the process of making a new facility reality.

While the need for a new Soldiers’ Home has long been understood and embraced, there is no doubt that the events of last spring — when the virus overran the facility amid a series of questionable decisions that ultimately led to resignations and, later, indictments for criminal neglect — have helped pave the way for a proper, modern, 235-bed facility that will serve veterans for generations to come.

This project still has a long way to go before it becomes reality. There are stern deadlines to meet and more important votes to take place in the state Legislature. But there certainly appears to be sufficient momentum to see this initiative to the finish line. It has been generated by caring people who want to do right by future generations of veterans — but also, we believe, by a deep desire to “make things right” for the families of those who died last spring and the for the staff members who have long endured inadequate facilities, said the chairman of a coalition of former Soldiers’ Home administrators, families, and veterans advocates who have embraced plans for a new home.

Truthfully, nothing will really make things right. But this is huge step in the right direction.

Editorial

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Opinion

They’re All Making a Difference

Since BusinessWest started its Difference Makers recognition program in 2009, we’ve told dozens of stories involving individuals, groups, and institutions that are positively impacting life in the 413.
Each one is different, although there are some common threads, and each one is inspiring. And this is the point of this exercise, if you will — to tell these amazing stories, because they need to be told, and to inspire others to find their own way to make a difference in their community.
The Difference Makers class of 2021 certainly continues this tradition. The stories beginning on page 22 convey, in a single word, the passion that these individuals and groups have for helping those in their communities and improving quality of life here. And they all go about it in a different way:

• Kristin Carlson, by becoming the face, or the new face, of manufacturing in this region. And a new voice as well, one that works overtime (that’s an industry phrase) to educate people, and especially young people, about the many opportunities in this field. Her efforts are already reaping dividends, as evidenced by her own shop floor, which now boasts a number of women in machining positions;

• EforAll Holyoke, by becoming another powerful force in the region’s entrepreneurship ecosystem. Through its accelerator programs, mentorship initiatives, and other ongoing forms of support, this nonprofit is helping many people, especially those in the minority community, realize their dreams of owning their own business;

• Janine Fondon, by being a constant source of energy and ideas, through initiatives ranging from UnityFirst.com, a national distributor of diversity-related e-news, to programs like On the Move, which bring women, and especially women of color, together for forums that are designed to engage, educate, and inspire;

• Harold Grinspoon, by being a successful business person, but especially by being a philanthropist who has never stopped asking about how he can help. Over the years, he has launched initiatives to support entrepreneurship at area colleges and universities, assist the region’s farmers, celebrate excellent teachers, and improve Jewish life and culture;

• Chad Moir, by creating the DopaFit Parkinson’s Movement Center, inspired by the experience of his late mother, to help those suffering from this dreaded disease live healthier, more confident lives through various forms of exercise that have proven to slow the progression of symptoms;

• Bill Parks, by not only helping young people and their families access critical programs through the Boys & Girls Club of Greater Westfield, but by using his own experiences to show them that their dreams and goals really are possible. His club’s programs not only impact young people’s lives today, but help them take charge of their future; and

• Pete Westover, for working tirelessly to help preserve and protect this region’s open spaces through a remarkable, decades-long career that featured a lengthy stint as conservation director in Amherst and ongoing work as managing partner of Conservation Works, which is involved in a wide range of preservation, trail-building, and other types of projects across the Northeast.

We salute these members of the class of 2021, and encourage others to read their stories and become inspired to find new and different ways to make a difference here in Western Massachusetts.

Opinion

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Opinion

An Appreciation for Chris Thibault

Filmmakers are storytellers. That’s what they do. They tell stories, and they help others tell their stories.

That’s what Chris Thibault did, and he was very good at it. He started Chris Teebo Films, and he worked with businesses and institutions across this area — from Spirit of Springfield to BusinessWest and its many award recipients and program sponsors Mercedes-Benz of Springfield — to help them communicate and get their messages across.

In recent years, though, the most compelling story Chris told was his own — specifically his long and difficult battle with cancer, which ended this week when he died at age 38. Starting from when he was first diagnosed with breast cancer, Chris used his talents and his desire to help others to take his battle public, through short films, blog posts — including one titled “How to Run a Production Company While Living (or Dying) of Stage 4 Cancer” — and more.

In the course of doing so, he became an inspiration to many, and in a number of ways. It was more than Jim Valvano’s famous ‘don’t give up, don’t ever give up’ messaging — although there was some of that. His message was more along the lines of never letting cancer run his life or tell him what he could or couldn’t do.

And there was still more to this story. Indeed, even though he was dealt a very bad hand and had every reason to say ‘why me?’ or bemoan his fate, he didn’t. He accepted what was happening to his body, and he never stopped trying to be upbeat, optimistic, and even humorous.

Indeed, when he talked with BusinessWest about that aforementioned blog post and the subject matter involved, he said simply, “I haven’t figured that one out yet … and to be honest, I wrote the title to get your attention so you would actually start reading the thing.”

Like all good filmmakers, he did grab your attention, and he held it.

His story certainly did not end the way he or all those who loved and admired him wanted, but it was one that left us even more thankful for the time we had with him — and more appreciative of the time we have on this planet. Period.

We thank him for that, and we thank him for the way he inspired us to live life to the fullest, even when serious roadblocks are put in front of us.

The best story he told was his own.

Restaurants Need Our Support

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Opinion

Editorial

The story of restaurants during the pandemic has not been a good one.

While that may be the most obvious of observations, it’s still important to keep at the forefront of any discussion of this industry — because restaurateurs will spin the past year as positively as they can. “We discovered a strong market for takeout.” “Outdoor dining was an unexpected success we’ll stick with.” “Our loyal customers tell us they can’t wait to dine out again.”

But don’t confuse those sentiments — which testify to the grit and resourcefulness of the region’s many dining establishments — with good news. There is no good news. Among the restaurant owners we spoke with for this issue, total sales over the past year have been significantly curtailed — in some cases halved, or worse.

Yes, they’ve done what they could to hang onto their dedicated staffs, with much-appreciated help from Paycheck Protection Program loans and state and local grants. And the pivots they made — one told us it was like opening a new restaurant every week — are admirable, as they were willing to change menus on the fly, install takeout and delivery, set up outdoor dining, and take any number of other steps to survive.

Some have not. And even among those that have, no one had a good year, and some are hanging by a thread. That 25% indoor capacity restriction, however needed to keep people safe, is just not going to cut it through a New England winter. That 9:30 p.m. curfew, only recently lifted, might pose an inconvenience to customers, but for a restaurant owner, those extra hours could be the difference between paying their bills and … well, not.

The economic impact on the region is massive; according to the Massachusetts Restaurant Assoc., the Bay State’s restaurants generated $18.7 billion in sales in 2018, while employing almost 350,000 workers. Meanwhile, every dollar spent on table-service dining contributes $1.87 to the state economy. And in a place like Hampshire County, where restaurants are such a key part of the culture and economy of Northampton, Easthampton, Amherst, and other communities, the damage of 2020 — which is clearly extending into 2021 — is even more dire.

A Pioneer Institute report lists a few steps local and state governments can make to ease the strain a little, from allowing alcoholic-beverage takeout and delivery on a permanent basis to allowing restaurants to sell fresh produce, meats, and other whole foods during the pandemic to compete with grocery stores; from prioritizing local permitting for food trucks owned by restaurants to allowing outdoor seating in parking lots and on sidewalks, as happened last summer in downtown Northampton.

But none of these steps, or the pivots restaurants have already made, will solve the main issue — that, even at reduced capacity, diners aren’t filling tables right now, and might not until they feel it’s safe, and that gets into vaccine distribution, a whole other story.

In the meantime, why not do what you can? Order more takeout. Buy more gift cards. Sit down for a meal if you feel safe doing so; area restaurants have been transparent about their sanitization procedures. And, once the COVID fog lifts and restaurants can open more fully, support them as much as possible.

The loss of more restaurants in Western Mass. would be a blow to our economy and a culture that values good food. But mostly, it would be a blow to some good, smart people who are tired of pivoting — but continue to do so, just to stay alive.

 

Priority Should Be Economic Recovery

By Contributor
Opinion

Opinion

By Chris Geehern

The unprecedented upheaval of 2020 will change the way we live and work for years to come, says John Regan, president and CEO of Associated Industries of Massachusetts (AIM).

Regan punctuated his annual State of Massachusetts Business Address with a call for state policymakers to support the recovery of an economy that remains fragile in the wake of the ongoing public-health crisis.

“Hundreds of thousands of our friends and neighbors in Massachusetts remain out of work because of the pandemic. Many have left the workforce altogether,” Regan said during a virtual speech to the AIM Executive Forum. “Addressing the COVID crisis by shutting down the economy again and impeding the ability of people to support their families is not a solution. Neither is imposing Draconian tax increases to address the state’s fiscal issues on the backs of businesspeople trying to keep people employed amid permanent, structural changes to the way we live and work.”

Regan noted that the unprecedented convergence of the COVID-19 pandemic, a cataclysmic recession, and a reckoning on racial equity combined to alter the economy, the workplace, healthcare, manufacturing supply chains, and transportation. It affected schools, government, family life, shopping patterns, the housing market, race relations, and social interactions.

The upheaval has accelerated ongoing seismic shifts in the nature of the workplace, Regan noted. “What the e-commerce revolution did for physical stores, the telepresence revolution could do for office-adjacent employment. Some of the repercussions are positive — less traffic in major urban areas, more flexibility for workers, and expanded opportunities for employers to hire talented people virtually anywhere.”

The bad news? “Cities like Boston that have thrived on proximity-driven innovation and community intellectual energy could see that energy dissipate as companies accelerate the move toward virtual operations,” he said. “Given the OK to go remote, workers may use their freedom to move to cheaper metros where they can afford more space, inside and outside.”

“What the e-commerce revolution did for physical stores, the telepresence revolution could do for office-adjacent employment. Some of the repercussions are positive — less traffic in major urban areas, more flexibility for workers, and expanded opportunities for employers to hire talented people virtually anywhere.”

Four distinguished economic experts offered commentary about which changes generated by the pandemic might be lasting. Pamela Everhart of Fidelity Investments, Edward Glaeser of Harvard University, Dr. Lee Schwamm of Mass General Brigham, and Nada Sanders of Northeastern University said the nature of any long-term structural economic shifts will become evident only after governments moderate the spread of the pandemic.

Regan said AIM and its 3,300 members look forward to working with state and federal leaders to craft a long-term economic recovery for the Commonwealth.

“Massachusetts businesses have responded responsibly to the pandemic by prioritizing their employees and customers, investing in workplace-safety protocols, adapting operations to ensure compliance with business-specific requirements, and finding creative ways to offer services and goods while remaining operational,” Regan said. “Businesses prioritized these things because this is what our businesses do. They invest, they change, and they adapt. These are the qualities that have made Massachusetts an economic leader for decades.” v

 

Chris Geehern is executive vice president of Associated Industries of Massachusetts.

The Year of the Entrepreneur

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Opinion

Editorial

Starting in 1996, ˆ has, at the start of each year, presented something we call the Top Entrepreneur award.

We do this to pay homage to a long — as in three centuries long — tradition of entrepreneurship in Western Mass., and to recognize companies, institutions, and individuals who are carrying on that tradition today. Over the years, the winners have included traditional entrepreneurs — those leading tech companies, multi-faceted corporations, and some family-owned businesses that have been part of the landscape for decades, if not a century or more — and also some non-traditional entrepreneurs — a college president and a hospital CEO, for example.

This broad diversity is by design, and it shows that we’re honoring entrepreneurial spirit as much as we are entrepreneurs.

Which brings us to this year’s honoree — the partners and leadership team at Golden Years Homecare Services, an East Longmeadow-based company that started with home care and has since diversified into staffing, behavioral-health services, and other realms ). An entrepreneurial mindset prevails from top to bottom and in every aspect of this enterprise, and it has enabled the company to set and maintain a torrid pace of growth since.

We salute Cesar Ruiz, Lisa Santaniello, and other partners and managers who are aggressively rewriting the business plan and taking this company to new places and a higher plane.

And while we’re at it, we would like to salute all the entrepreneurs slugging it out across our region. They all deserve some credit at this ultra-challenging time for anyone trying to own and operate a business.

Indeed, running a company has never, ever been easy. But in these times, everything is much more difficult. As we’ve said on many occasions, one of the things that has inspired us during these times has been the manner in which the region’s business community has responded.

In short, it has been entrepreneurial. Business owners and managers have responded to adversity with imagination and determination, finding new revenue streams, new ways of doing business, and new avenues for growth. Examples abound, including everything from outdoor dining at restaurants to manufacturers retooling to make PPE. At Golden Years, the pandemic actually helped fuel a surge in home-care business, as many families came to view the home as a safer alternative to nursing homes and other facilities.

Looking back, one might call 2020 the ‘year of the entrepreneur.’ Those at Golden Years stand out, certainly, and they are most deserving of this prestigious honor. But all the entrepreneurs who have bravely battled COVID-19 deserve to take a bow.

Women’s Colleges Play Critical Role

By Contributor
Opinion

Opinion

By Sandra Doran

We’re just days away from watching the accomplished, inspiring Kamala Harris become the next vice president, and it doesn’t escape me that this thrilling milestone comes at the same time the Bureau of Labor Statistics reports 1.1 million American workers have left the pandemic-challenged labor force — and 865,000 (80%) of them are women. The contrasts of this moment provide some context for understanding the significance of women’s colleges, and for championing the important place they hold in our world.

The Women’s College Coalition counts just 36 American women’s colleges, down from 46 six years ago and about 230 in 1960. Our numbers have dwindled against a backdrop of social, political, and economic shifts for women, shifts that have resulted in more options and opportunities across the board, but especially in the realm of higher education, where women students have outnumbered men for five decades, prompting many to ask: what purpose do today’s women’s colleges serve?

A recent study by Kathryn A. E. Enke, published by the Women’s College Coalition, looked at access, opportunity, and outcomes at today’s American women’s colleges and compared them with coed liberal-arts colleges and public universities. Her findings reveal a modern profile of women’s college students that may surprise those who still view these schools as places where America’s elite daughters are groomed to uphold the professional, and personal, status of their forebears.

Rather than resembling the student population at private liberal-arts colleges, women’s college students are demographically akin to students at public colleges and universities, meaning they’re older, more diverse, and less economically advantaged. While we still imagine that the average college student is 18 to 24 years old, that age bracket includes only 50.6% of students at women’s colleges; at private liberal-arts colleges, it’s 90.9%, and at public universities, 77.5%.

More than half of students at women’s colleges identify as students of color (51.2%), compared to 38.5% at private liberal-arts colleges and 43.6% at public universities. Enke also found that full-time, first-time undergraduates at women’s colleges are more likely to have been awarded a Pell Grant than students at liberal-arts colleges (43.2% vs. 32.6%), meaning they are more likely to come from families with limited financial means. At Bay Path, 56% of our students are Pell-eligible.

Why is this significant? According to an analysis published by the Pell Institute, low-income, first-generation students disproportionately come from ethnic and racial minority backgrounds, and they tend to be older, less likely to receive financial support from parents, and more likely to have multiple obligations outside college, all factors that require a more intentional and supportive college experience.

One real power of women’s colleges exists in the influence of academic and social experiences, which the Pell Institute describes as “studying in groups, interacting with faculty and other students, participating in extracurricular activities, and using support services.” These experiences are shown to foster success in college, and intentionally, repeatedly, and enthusiastically creating a learning environment and culture that embeds these experiences into the educational model is what defines women’s colleges.

Our schools don’t just shepherd women to their diplomas; we create a distinct and dedicated space for women to build intellectual confidence, enduring community, and unwavering tenacity — because we know they’re going to need every last bit of it as they pursue their ambitions.

Enke’s research also measured retention and completion rates at women’s colleges at 62.2%, private liberal-arts colleges (which tend to serve the most economically privileged students) at 68.9%, and public schools at 54%. We’re proud to note that the retention rate of all traditional undergraduates at Bay Path is 77%.

The past year has laid bare the persistent circumstances that continue to disrupt women’s ambitions, impede our incomes, and restrict our potential. With women’s colleges up against the financial and demographic headwinds shaking the entire higher-ed sector, we must dig deeper, hold faster, and aim higher, while keeping the initial mission of women’s education at the center of all we do: to expand access, create space, and nurture the intellect for women who deserve to realize their dreams.

 

Sandra Doran is president of Bay Path University.

New Year, Same Challenges

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Opinion

Editorial

The calendar no longer says 2020.

And that’s a really good thing. Over the past 10 months or so, those four numbers became synonymous with pandemic, challenge, uncertainty, and more challenge. Turning the calendar over helps psychologically, but it doesn’t change the equation. Not yet, anyway.

In fact, as the experts interviewed for our Economic Outlook section indicated, while there is indeed a light at the end of the tunnel, there is still quite a bit of tunnel to get through. If this is the beginning of the end (of the pandemic), the end is still a ways off.

And, in some ways, there’s a good chance things will actually get worse before they get better, because, as some experts noted, the relief that many companies received through stimulus initiatives will not be there, or there to the same extent, like they were in 2020. So many businesses will be facing a reality check, and a scary one at that.

But if 2021 looks daunting in many respects, we can look back at 2020, not for painful memories, or only painful memories, but also for inspiration.

Indeed, as we’ve written on several occasions, the best thing about 2020, from our respective, was the manner in which the business community responded to a crisis truly without precedent. Going back to the middle of last March, we wrote about how business owners in this region had been through a lot over the past few decades — recessions, including a ‘great’ one; a tornado; the sudden quiet after 9/11; Springfield’s fiscal meltdown; and so much more. We wrote that this pandemic would be unlike any of those and would test the mettle of this region in ways we could not have imagined.

We were right about that, but we were also right when we said this region was up for the fight. It was, and it is, and a look back at 2020 proves this.

Yes, some businesses have been lost, mostly in the retail and hospitality sectors, and the losses have not been insignificant. Meanwhile, a number of mainstay businesses have been battered and bloodied — MGM Springfield, the Basketball Hall of Fame, the Springfield Symphony, the Thunderbirds, Union Station, UMass Amherst and all the colleges and universities, every restaurant and performance venue in the region … the list goes on.

But they are still standing, and, in the meantime, a large army of small businesses have responded with imagination, perseverance, and the entrepreneurial spirit that has defined the region for more than 250 years.

We’re told many of these stories over the past nine months, and they have been inspirational. Businesses that found themselves struggling, through no fault of their own, discovered ways to pivot, find new revenue streams, and, in some rare cases, actually expand and grow their businesses.

If there was any bright spot to 2020 — and there were not many — watching this collective display of courage and determination was it.

And now that the calendar has turned to 2021, nothing has really changed. The operating environment is as challenging as ever, and even moreso for most hospitality businesses, now that winter has set in.

The next few months may be the most difficult yet, but we are confident that those same qualities that helped businesses ride out 2020 will enable them to continue the ride — until the day when ‘normal’ returns and the predicted pent-up demand will provide a much-needed lift to ventures across all sectors.

As the new year begins, the light at the end of the tunnel is still a ways off. But at least we can see it.

Freeze Unemployment Tax Rates for 2021

By Contributor
Opinion

Opinion

By Brooke Thomson

Associated Industries of Massachusetts (AIM) has worked tirelessly with elected officials on both the state and federal levels to moderate a potentially disastrous 60% increase in unemployment insurance rates next year and to keep the Unemployment Insurance Trust Fund on sound financial footing.

Last month, Gov. Charlie Baker took a major step toward addressing that issue by filing timely legislation to ensure a two-year schedule freeze and provide the ability to bond the remaining trust-fund deficit and allow it to be rebuilt over time.

Meanwhile, AIM continues to support efforts by the Massachusetts Congressional delegation to persuade Congress to provide additional resources for the state’s Unemployment Insurance Trust Fund. The $900 billion economic stimulus bill recently approved in the U.S. Congress does not provide money for state UI systems, though it does revive the Paycheck Protection Program with $284 billion to cover a second round of PPP grants to especially hard-hit businesses.

Massachusetts businesses now need elected officials to stabilize the state’s unemployment-insurance system by freezing the statutory rate and allowing Massachusetts to authorize bonding.

A day before Baker filed his rate-freeze bill, AIM provided a statement to the entire Massachusetts Legislature calling for a freeze on employer UI tax-rate schedules to shield Massachusetts employers from the upcoming rate spike, which is tied by statute to the overall condition of state UI Trust Fund.

Given the unforeseen economic shutdowns brought on by the COVID-19 pandemic beginning in March, the Massachusetts Department of Unemployment Assistance projects that the fund, primarily financed by direct and reimbursing employer contributions, will be in the red by $5 billion at the end of 2022 and remain insolvent by about $3 billion as far out as 2024.

These initial numbers, left unchecked, would trigger an increase from the current 2020 employer tax rate of Schedule E, or $539 per employee, to Schedule G, about $866 per employee, reflecting an almost 60% increase.

Baker’s bill would freeze the employer tax rate at Schedule E for the next two years, slowing annual employer contribution growth to $635 in 2021 and $665 in 2022.

AIM thanks Gov. Baker for filing this legislation, and we appreciate the speedy action that the House and Senate have taken throughout this pandemic with legislation to stabilize the unemployment-insurance system for employers and employees.

We urge the House and Senate to take urgent action on this proposed legislation to freeze rates and fund the system through bonding, which will ensure that all claims are paid to individuals, that the trust fund is stabilized with a low-interest loan, and the Commonwealth is able to avoid a statutorily triggered unemployment-insurance tax-rate hike in first months of 2021.

 

Brooke Thomson is executive vice president for Government Affairs at Associated Industries of Massachusetts.

More Business Dreams Are Dying

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Opinion

Editorial

 

While the arrival of vaccines is fostering some optimism across this country and we’re hearing phrases like ‘beginning of the end’ (for the pandemic) and ‘light at the end of the tunnel,’ the sad fact is that relief won’t come soon enough for some businesses in this region.

The latest victim of the COVID-19 crisis is Gateway City Arts in Holyoke. Owners Lori Divine and Vitek Kruta announced they can longer continue operating their cultural-arts center, which had become such a critical part of Holyoke’s resurgence, and will now attempt to sell the complex.

Their message to the community sums up the plight of so many businesses in this region and the frustration that has accompanied the restrictions, shutdowns, and general lack of support from state and federal officials.

“We have reached the point where we just don’t have the resources and energy to try to survive,” they wrote, echoing the sentiments of many who have been trying, unsuccessfully, to hang on. “It took us 10 years to start feeling that we could make it, and then COVID took it all away.”

The two went on to talk about life just before they were forced to close their doors. There was a sold-out concert with more than 500 people in the Hub (and an impressive upcoming slate of big-name artists), a theater production with more than 100 people, and a full house in Judd’s restaurant. And in the veritable blink of an eye, it was all gone.

Like most small businesses in this region, Gateway City Arts received a PPP loan last spring. It was intended to provide eight to 10 weeks of support and keep people paid — and that’s exactly what it did. The problem, as everyone knows, is that the pandemic has lasted far longer than a few months. No further relief, other than a GoFundMe campaign, was forthcoming, and with no end to this crisis in sight, Divine and Kruta had to let their dream die.

As we all prepare to turn the calendar to 2021, many businesses are some state of peril — and many more dreams may have to die. If there is a lockdown or further restrictions, as many fear is possible, if not imminent — or even if the status quo continues — many more small businesses will be forced to close their doors.

Yes, the vaccines are coming, and yes, there just might be some light at the end of this incredibly long, exceedingly dark tunnel. But for many, it won’t come soon enough. As this issue was going to press, Congress was making some progress toward a new stimulus package, one we have to hope will include some relief to embattled small businesses.

But these companies need more than that. As we’ve written on many occasions, they need the support of the community, in any way it can come, to get through this.

We were encouraged to see that a number of businesses were stepping up during the holidays to help. Indeed, instead of sending the traditional gift basket or tray of cookies to an office where few if any people are working anyway, some businesses have sent gift certificates or even small, pre-paid credit cards, with instructions to use them to support local businesses.

Likewise, instead of having that holiday party at a local venue, some businesses are instead giving employees gift certificates for local restaurants, a step that shows appreciation not only for valued workers, but for the local eateries that have been devastated by this pandemic.

It’s unlikely that such steps would have saved Gateway City Arts, a intriguing, potential-laden business that was just hitting its stride when the rug was pulled out from under it. Unless the region rallies around the still-surviving small businesses, other dreams may die as well.

Coping with Loss During the Holidays

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Opinion

Opinion

By Stuart Anfang, M.D.

The holidays are supposed to be ‘the most wonderful time of the year,’ as one song notes. But for some, it may be the most difficult time of the year after the loss of a loved one.

The holiday season can be especially difficult for those who are preparing to spend these joyous occasions for the first time without a spouse, child, or other beloved family member or friend by their side. These feelings of grief are only exacerbated this year by COVID-19, which has taken the lives of so many, plus the general stress of dealing with the pandemic.

It’s only natural to experience a range of emotions such as sadness, loneliness, and even helplessness and hopelessness while navigating the hustle and bustle of the holidays. But you don’t have to suffer alone. Recognize that you are not alone, and that mixed or sad feelings during the holidays are not uncommon. Do not suffer in silence, and watch for the tendency to isolate or withdraw from others. Denying or bottling up your feelings — or self-medicating with alcohol or drugs — are worrisome signs.

As you prepare for the holidays, include activities that are important to you and your family. Share the load and accept offers of help. If some activities are too difficult or draining, set limits or decide to drop them. Remember, it’s OK and not a sign of weakness to ask for help.

It is always important to remember that you have options. You can change routines. Modify past traditions or join your family in creating new traditions. If you wish, you can find a way of formally remembering your loved one who is not physically present with you — for example, serving their favorite dessert and reflecting on the joy that it brought to your loved one in the past. It is stressful to experience the holiday without your loved one, but you can find ways to honor and include them.

Together, you can share a holiday that is different, but still meaningful and hopeful. As a family, you can add a memory ritual into your holiday by including a special activity such as looking at old photo albums or making and displaying a special holiday decoration with significant ties to the deceased. Given the current COVID-19 circumstances, make sure to follow public-health recommendations about masking, social distancing, and gathering in limited numbers.

Many people also find solace in generosity, as this is the ‘season of giving.’ Many people also volunteer during the holidays, such as serving meals at a local shelter or distributing toys to needy children.

For some, the holidays may offer a reprieve from sad feelings, and you may find yourself caught up in the moment as you experience the joy of family and friends around you. But if you are noticing more significant symptoms causing impairment at work, school, or home — problems with sleep, low energy, dramatic change in appetite or weight, inability to concentrate, frequent crying, easy irritability, thoughts of hurting yourself, or wanting to die — that may be time to seek some professional evaluation. A good place to start can be your primary-care provider or a trusted clergy.

The bottom line is, help is available. Do not suffer in silence.

 

Dr. Stuart Anfang is vice chair of Psychiatry at Baystate Health.

An Opportunity for the Region

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Opinion

Editorial

As 2020 prepares to come to what we hope will be a merciful end (only if our collective luck changes), it is time to look ahead.

It certainly beats looking back.

And as we look ahead, we need to consider what the world might look like when and if something approaching normal returns, and what it means for us. At both the micro and macro level, it doesn’t mean going back to the way things were before.

The world will have changed, in all kinds of ways, and a good many of these changes will be permanent, as in, there’s no going back to the way we were. This goes for the services we offer to customers, how we do business, and where we do business.

Yes, everyone hates Zoom — or really hates Zoom, as the case may be. But even the most ardent of haters will admit that a Zoom session beats investing the time and energy in a drive to Worcester, Boston, or wherever. A Zoom session beats getting up early — and getting dressed (don’t forget that part) — to go to a morning board meeting or perhaps even a session with a client.

And that’s just one example. The same goes for the modern office. As much as we all hear that businesses will return to the office, that workers need the camaraderie, that teams need to be in the same room to be effective, it’s clear that things simply will not be as they were.

“We’re encouraged by a more aggressive attitude toward taking advantage of what appears to be an opportunity for the region.”

Companies have learned they can make do with less office space — or without any office space. Individuals have learned they can do their jobs from home, and that ‘home’ doesn’t necessarily have to be close to the office. Which means it doesn’t have to be a densely populated — and very expensive — area. Businesses owners may gradually ditch the current mindset that they need to be in Seattle, Boston, Cambridge, or the Research Triangle, “because that’s where the workers are.” The workers, at least for some jobs, can be anywhere.

If you’re an optimist, this bodes well for the region, and we like to be optimistic. Which is why we’re encouraged by a more aggressive attitude toward taking advantage of what appears to be an opportunity for the region. Groups like the Western Massachusetts Economic Development Council and the Springfield Regional Chamber appear to moving from ‘we might want to think about this’ to the ‘let’s do something about it’ stage.

By that, we mean they’re moving more assertively when it comes to trying to tell this region’s story and putting information in people’s hands — with the goal of motivating people, small businesses, and maybe major corporations to consider the 413 as a place to put down roots or expand.

It has always been that way — and we have always sold it as such — but we haven’t done well in pitching people on the concept, even as Boston has become more expensive and its roads have become more congested.

Maybe the pandemic and the lessons learned while navigating our way through it will change this equation. Maybe. After all, there will be considerable competition from other cities, states, and regions who have learned the same lessons. Meanwhile, this region has never been able to muster the kind of marketing muscle it takes to get a message across to a broad audience.

But it doesn’t hurt to try, and as we thankfully turn the calendar to 2021, it is time to look back a little, reflect on what we’ve learned, and do what we’ve all been trying to do since March — be in a better position after the pandemic than we were before.

What Biden’s Presidency May Bring

By Contributor
Opinion

Opinion

By John Regan

Joe Biden, set to become the 46th president of the U.S., will take office at a singular moment in the history of a nation struggling to confront the convergence of a pandemic, an economic crisis, and social upheaval.

It’s also a singular moment for Massachusetts employers. The change of administrations in Washington will have enormous consequences for employers on everything from federal stimulus to the tenor of labor relations.

Record numbers of voters cast ballots either in person, by absentee ballot, or through the mail in an election conducted amid a second surge of COVID-19 cases around the country. It was an election marked by stark polarization on the issues, a backlash against globalization, the growing influence of technology, and cultural and social struggles.

The new administration and Congress will set the nation’s economic agenda for the next two to four years. Biden’s ability to implement his economic plans will ultimately be determined by two runoff elections in Georgia that will determine which party controls the U.S. Senate.

The issues for employers will range from taxes to business regulation. The most immediate concern for Massachusetts companies and for the Commonwealth itself is the prospect that a Biden administration could break the logjam over a new economic-recovery package as a follow-up to the CARES Act passed in March. Such a package could reopen the door to the popular Paycheck Protection Program for employers and provide financial support to the state as it seeks to close a project budget shortfall of $3 billion to $6 billion.

Biden’s ability to implement his economic plans will ultimately be determined by two runoff elections in Georgia that will determine which party controls the U.S. Senate.

It is also anticipated that the new administration will initiate a more aggressive federal approach to moderating the COVID-19 pandemic than that taken by the Trump administration. Federal regulations such as a mask mandate and broad health protocols will affect Massachusetts companies that do business in multiple states.

President-elect Biden has proposed raising taxes on corporations and imposing a corporate minimum book tax. He would also increase taxes on individuals with income above $400,000, including raising individual income, capital gains, and payroll taxes.

Most observers expect regulation of business to become more aggressive in areas such as occupational safety, union activity, and environmental compliance. The development of wind energy, including proposed projects just south of Martha’s Vineyard, is likely to accelerate after several years of slowdowns.

U.S. financial markets are likely to be affected. The stock market generally produces below-average returns during the first two years of a presidency and strong returns during in the second two years as investors gain confidence in the predictability and certainty of an administration.

The nation’s approach to international trade, which was marked by aggressive imposition of tariffs by the Trump administration, may also change under a Biden administration. While the president-elect has refrained from releasing any detailed policy proposals on trade, he has emphasized the importance of training the U.S. workforce for a competitive global environment, a renewed commitment to reducing trade barriers, and a coordinated approach to negotiations with China that utilizes U.S. allies and international institutions.

AIM members should be assured that the association remains committed to representing your best interests whatever direction the political winds might shift. v

 

John Regan is president and CEO of Associated Industries of Massachusetts.

Doing Whatever It Takes

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Opinion

Editorial

As the region pauses to celebrate Thanksgiving and start the holiday season, many are counting down the days until this most painful of years comes to a close.

For the business community especially, 2020 has been a year of never-ending challenges, more uncertainty than anyone would ever want, and decisions that only come in two varieties — difficult and really difficult. Nothing has come easy.

And while none of this will magically end when the calendar gets flipped to 2021, it will be good to put this year in our collective rear-view mirror.

As we begin our work reflecting on this year — and there will be a lot of that, even as we brace for times that could be even more difficult, if that’s possible — it is easy to focus on all the negative. And we’ve done enough of that ourselves.

But we want to take another opportunity to recognize and applaud the fighting spirit of the region’s business community and the manner in which it has responded to all that has been thrown at it with imagination and true resolve.

We saw another example recently when the Big E, which has been continually hammered by state restrictions regarding large events, and had to cancel its annual 17-day fair, came up with a unique ‘golden-ticket’ promotion.

And there really is a lot that has been thrown at our businesses — including draconian measures taken in the name of flattening the curve and ever-changing guidance and regulations that often make it so what you were doing last week is impossible to do this week. But, as we said, businesses have responded, and in creative, determined fashion.

We saw another example recently when the Big E, which has been continually hammered by state restrictions regarding large events, and had to cancel its annual 17-day fair, came up with a unique ‘golden-ticket’ promotion.

Inspired by Willy Wonka, or so we’ve been told, the promotion involves $1,000 golden tickets that enable the purchaser and a companion lifetime entrance to the Big E, along with a number of other perks.

From what we hear, the 100 tickets sold in less than two minutes once they officially went on sale.

Realistically, $100,000 is a tiny fraction of the Big E’s annual budget, and this promotion is not going to make a serious dent in the staggering losses the company has suffered this year. But it helps — in this trying year, every single dollar helps. And the golden ticket is a perfect example of how companies have had to look beyond what they’ve done, look beyond what they know — and find ways to generate revenue and keep people employed until that day when the clouds will finally break.

But it’s just one example. There are plenty of others.

We’ve seen restaurants get creative and entrepreneurial in their efforts to use outdoor dining, delivery, and curbside service to somehow keep their doors open. We’ve seen event venues and production companies make the difficult adjustment to hybrid and virtual events. We’ve seen nonprofits pivot and use these virtual events to raise money so they can continue to carry out their missions. We’ve seen manufacturers retool to one extent or another and shift to making PPE and other in-demand items. Getting back to the Big E, we’ve seen it tack and put its large indoor spaces to use as storage facilities for cars, boats, and other items.

There are countless other examples of companies taking a very bad situation and making something of it. And as the year draws to a close, we believe these stories can and must serve as inspiration for what it is to come — probably several more months of challenges and those difficult decisions.

Not that anything was ever easy, but we certainly won’t see anything approaching easy for a while yet.

Which means we’ll need to keep exercising our collective imaginations and coming up with our own golden tickets.

A Plot Twist with a Happy Ending

By
Opinion

Editorial

Over the past decade or so, one of the better stories to emerge in this region has been the development of the Ludlow Mills complex in Ludlow.

Acquired by Westmass Area Development Corp. in 2012, the mostly vacant set of jute mills and storage buildings has become home to an eclectic mix of businesses, and is now the site of a residential complex, a rehabilitation hospital (Encompass), and a host of small businesses that cross several sectors.

But this solid business story had been tempered somewhat by the very public, highly visible discord (there’s a diplomatic term) between Westmass and one of its more popular tenants, Iron Duke Brewing.

A disagreement over language in the lease eventually escalated into a bitter and protracted court fight, one that led to hard feelings, plans to relocate the business in Wilbraham, and a new and popular product — Eviction Notice IPA.

For a while, it looked like this court battle was going to end like so many before it — with no one really winning, despite how the ruling came down. It looked for all the world like both sides were going to be out perhaps hundreds of thousands in legal fees, Westmass would be out a good tenant, and Iron Duke would be saddled with the expense and challenge of essentially starting over in a new town and new brewery.

And then … things changed. Not overnight, but as the story on page 6 recounts, they did change.

Amid the heavy baggage from the lawsuit and the disagreement that led to it, the two sides agreed to sit down and talk. And from those talks came some progress and eventually a path to an agreement whereby Iron Duke would not only stay in its home at the mill — one of the century-old stockhouses that stored raw material — but expand within that site and perhaps own it someday.

An agreement that didn’t seem at all possible just 18 months ago.

Maybe there’s a lesson in all this — one about communication and listening and getting to understand both sides of a disagreement, on the theory that the more people know and the more people talk, the better the odds they can work out their problems.

Maybe the lesson is to try to do that before egos take over and before the lawyers get involved because, after that happens, it becomes that much harder.

We’re not sure about the lessons. We are sure that what was a good story for the region is now an even better story. Iron Duke will stay where it is, expand, and make the mill complex a better, stronger destination, one that might help attract more hospitality-related businesses like it.

Iron Duke will soon have to change its name to avoid another expensive lawsuit, this one from Duke University as it seeks to protect its brand. But that’s another story.

This story has what certainly appears to be a happy ending, after a plot twist as welcome as it was — that’s was — unlikely.

Editorial

By
Opinion

A Chain Reaction of Impact

Back in 2007, BusinessWest launched its 40 Under Forty recognition program to celebrate the achievements of the region’s rising stars. A couple years later, it created Difference Makers, which recognizes individuals who are, well, making a difference in their communities. The Healthcare Heroes awards followed three years ago, recognizing high achievers in that important sector.

Clearly, we love identifying and writing about people and organizations that deserve the attention; we’re as inspired writing those stories as you (hopefully) are when you read them.

Plenty of women have been honored by all three programs — in many years, in fact, women comprise a majority of winners. So why did we launch the Women of Impact program in 2018? Is it really necessary?

In a word, yes. First of all, while there are many women of achievement in this region — and have been for a long time — not enough of them have received the recognition they are due.

But another reason, one that has become more clear over the first three cohorts of Women of Impact, is that this program spotlights ways in which honorees not only shine on their own, but help other women do the same.

In this year’s class alone, you can read about Carol Campbell, president of Chicopee Industrial Contractors, who has not only personally mentored many women over the years, but cultivated a management team entirely made up of women — in an industry still dominated by men.

And Pattie Hallberg, CEO of the Girl Scouts of Central & Western Massachusetts, who has devoted her professional life to understanding the issues and challenges facing women and girls, and finding proactive ways to address them.

And Christina Royal, president of Holyoke Community College, who understands how critical an affordable college education is to women, including low-income women, women of color, and working mothers, many of whom have been thrown for a loop by the pandemic and recession, and rely on HCC’s support to stay on their degree path.

The stories go on, in many cases echoing the honorees’ desire not only to succeed in life, but to make sure women following behind them have the tools they need to do the same and, in turn, inspire the next generation.

This is not the easiest time for women in the workforce. In fact, in September, about 617,000 women stopped working — about eight women for every man who dropped out, in fact — partly due to competing demands from home, especially young kids who need support with remote learning.

Even during more, well, normal times, BusinessWest has long told the stories of not only women who are helping their peers navigate challenges, but organizations like the Women’s Fund of Western Massachusetts, Dress for Success Western Massachusetts, Girls Inc. of the Valley, and so many more who’ve made it their mission to help women succeed, now and in the future.

In short, women in this region are making an impact every day. We’re honored to be able to tell some of their stories.

 

Opinion

By Contributor
Opinion

How to Handle Unemployment Fraud

By Chris Geehern

State officials and Massachusetts employers continue to deal with a surge of fraudulent unemployment-insurance claims generated as part of a national scheme using stolen personal information to attempt to access jobless benefits.

Criminal enterprises with access to stolen personal information from prior national data breaches have been taking advantage of the COVID-19 pandemic by attempting to file large numbers of unemployment-benefit claims through the Massachusetts Department of Unemployment Assistance (DUA) system.

DUA revealed in July that 58,000 fraudulent claims had been detected, preventing the loss of $158 million. At the time, the Department of Labor said it was working with the state and federal law enforcement to investigate the fraud and hired a private accounting firm to perform a forensic audit. Now, fake unemployment claims are on the rise once again as scammers appear to be targeting public employees.

Associated Industries of Massachusetts (AIM) has also continued to receive reports from member companies about fraudulent unemployment claims. Companies report in some cases that employees have been unaware that a fraudulent claim has been filed in their names and are thus unable to bring the scam to the attention of their employers.

Employees and employers should work together to address the scam by reviewing a set of online identity-fraud tools developed by DUA. Meanwhile, state officials are providing guidance to employers on how each of the following situations where there is a questionable claim should be handled.

If an employer has received a ‘Confirmation of Employment’ letter, complete the form online. If the person still works for you, select ‘still employed part-time,’ even if the person is a full-time employee. If the person never worked for you, select ‘The claimant did not work for me during the time period stated.” The employer should encourage the employee to file a fraud report and follow the guidance at www.mass.gov/info-details/report-unemployment-benefits-fraud.

If an employer has received a ‘Lack of Work’ letter for an employee who either has never worked for the company or is employed by the company without any break in service for the past year, follow the same instructions as for a ‘Confirmation of Employment’ letter.

If the employer or employee is responding to a ‘Fact Finding Letter,’ complete the form as provided. Employers should inform employees who had a claim filed without their permission to visit the website noted above to report the fraudulent claim and find information and advice on other things they should do to protect their identity.

If an employer has received a ‘Monetary Determination’ with which they disagree, encourage the employee to file a fraud report and follow the guidance at the website.

If an employer is protesting a claim a result of a ‘Benefit Charge Statement’ they are in disagreement with, protests can only be filed online and not by any other mechanisms. On the online form, enter a comment saying ‘fraudulent claim’ and then provide information why you believe the claim was fraudulent (for example, the claimant still works for our company, and when we spoke to the claimant, they said they never filed a claim).

In a case where both the employer and the employee acknowledge the claim was not filed by the employee, the employer should fill in the protest form using their UI Online account, and the employee should file a fraud report and follow the guidance at the website noted above.

 

Chris Geehern is executive vice president of Associated Industries of Massachusetts.

 

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