Former MassMutual Chief Wins Appeal over Firing
SPRINGFIELD — Robert O’Connell, former MassMutual Financial Group chief executive, was unjustly fired last year, according to the ruling of an arbitration panel hearing his claim, and now O’Connell stands to win about $50 million in termination benefits. MassMutual ousted O’Connell last year, accusing him of abusing his authority by improperly manipulating stock accounts and interfering with internal investigations, among other wrongdoing. However, the Sept. 22 ruling by the American Arbitration Assoc., which was kept sealed until Oct. 20, finds that O’Connell has essentially prevailed on most of his claim. “The company did a total character assassination of Mr. O’Connell in order to deprive him of his contractual rights, terminate him, and advance and promote his detractors,” O’Connell’s attorney, Dean Richlin, told The Boston Globe. “This decision is a total vindication of Mr. O’Connell and a total rebuke of the board of directors at MassMutual and its advisers.” The company has filed suit against O’Connell in Suffolk Superior Court, seeking to have the award set aside. In a statement to employees, MassMutual Chairman James Birle and Chief Executive Stuart Reese asserted that “we believed then, as we believe now, that the totality of [O’Connell’s] behavior was, at a minimum, improper, unprofessional, and lacking in the ethical leadership that is required” at MassMutual.
Harvey Industries to Expand in Chicopee River Business Park
CHICOPEE — Harvey Industries Inc. recently announced plans to expand its manufacturing operations by constructing a new facility in the Chicopee River Business Park, according to the Westmass Area Development Corp. (Westmass). The vinyl window and door manufacturer currently leases space on Cottage Street in Springfield, but has grown considerably, creating the need for a new larger facility, according to Tom Russell, senior vice president of manufacturing for the company. The new facility will be on a site of approximately 30 acres, which is in both Chicopee and Springfield. The new building will be approximately 255,000 square feet, an increase of more than 100,000 square feet. More than 230 people are employed at Harvey’s current manufacturing site, and the expansion is expected to add a significant number of quality jobs. A groundbreaking is expected in 2007.
Regional Bureaus Receive Tourism Grants
BOSTON — Several Western Mass. visitor bureaus recently received grants from the Department of Business & Technology (DBT)/Massachusetts Office of Travel and Tourism (MOTT) to help generate tourism spending in Massachusetts. Tourism is recognized as the state’s third largest industry, generating more than $808 million in state and local taxes and nearly $12.5 billion in travel-related expenditures. The Greater Springfield Convention and Visitors Bureau received $460,995 in state funds to market the region as a premier destination, while the Mohawk Trail Association received $181,811 in grant funds. Additionally, the Berkshire Visitors Bureau received $507,567 in state funds for marketing purposes.
Most Workers Consider Age Irrelevant at the Office
MENLO PARK, Calif. — They say age is a state of mind, and a new survey suggests this may be particularly true in the office; 84% percent of workers polled said they would be comfortable reporting to a manager who is younger than they are, and 89% said they wouldn’t mind supervising employees older than themselves. For the first time in history, four generations of employees are in the workforce, from the Silent Generation and baby boomers to Generations X and Y, according to Diane Domeyer, executive director of OfficeTeam. She added that companies recognize the benefits of having diverse, well-rounded teams, and employees may be just as likely to report to a younger supervisor as an older one. In either case, the boss’s management abilities are more of a factor in employee job satisfaction than his or her age. Domeyer said that employees today are recognized more for performance than tenure with a company. The survey was developed by OfficeTeam and includes responses from 567 individuals 18 years of age or older and employed in office environments.
Report Shows Cities Guardedly Optimistic about Fiscal Health
WASHINGTON, D.C. — Like the millions of Americans they represent, U.S. cities were able to pay their bills this year but are concerned about how rising costs will affect their long-term financial stability. In fact, despite a more optimistic view of fiscal conditions, cities have yet to recover fully from the effects of the 2001 recession once changes in city revenues are adjusted for inflationary factors, according to a report recently released by the National League of Cities (NLC). More than two in three city finance directors who responded to the City Fiscal Conditions Survey in 2006 said their cities were better able to meet financial needs during 2006 than in the previous year, yet many city officials cite numerous negative factors that are affecting the solvency of their budgets. An overwhelming majority (92%) of city finance directors cited prices, inflation, and cost of living as factors affecting their city budgets. The survey is a national mail survey of finance officers in U.S. cities. Surveys were mailed to a sample of 1,059 cities, including all cities with populations greater than 50,000 and a randomly generated sample of cities with populations between 10,000 and 50,000. The 2006 survey data is drawn from 385 responding city finance officers and allows NLC to generalize about all cities with populations of 10,000 or more. Copies of the report are available at www.nlc.org. The NLC is the nation’s oldest and largest organization devoted to strengthening and promoting cities as centers of opportunity, leadership, and governance.
Performance Food Group Purchases Site
SPRINGFIELD — Performance Food Group Co. has purchased 32 acres in the Memorial Industrial Park II on Roosevelt Avenue to expand its Taylor Street operation. The international food and kitchen supplies distributor paid $1.62 million for the property, which will include a 211,000-square-foot facility. The property is adjacent to Smith & Wesson. Company officials expect to go from 300 full-time employees in 2007 to 532 by 2013.
Bradley Adds Amsterdam Flights
WINDSOR LOCKS, Conn. — Bradley International Airport (BDL), in conjunction with Northwest Airlines, recently announced it will begin offering scheduled daily nonstop international service for the first time in July. While Northwest Airlines has increased frequency of flights at other airports, BDL is the only new service to be announced by Northwest. Nonstop service to and from Schiphol Airport in the Netherlands is scheduled to begin July 1. The new daily flight is scheduled to depart BDL at 5:45 p.m. and arrive at Schiphol at 6:45 a.m. The return flight leaves Schiphol at 1:30 p.m. and arrives at BDL at 3:30 p.m. With this new service, travelers will have the ability to connect to 81 cities in Europe, the Middle East, Africa, and India.
Deerfield Properties Sold To N.Y. Firm
DEERFIELD — O’Connell Development Group of Holyoke recently announced the sale of two properties at Yankee Candle for $33.6 million. Both properties on Yankee Candle Way had been leased to the Yankee Candle Co. Deerfield Yankee Candle Acquisition LLC, a company formed by Gumowitz Real Estate in New York City, was the purchaser of the warehouse and three-story office building. O’Connell and its real estate company, Candist LLC, sold the warehouse for $19.6 million, while O’Connell and Candoff LLC sold the office building for $14 million. Both transactions closed on Sept. 27.
Pike Board Considers Ending Tolls West of Route 128
BOSTON — The Mass. Turnpike Authority board recently announced plans to end tolls west of Route 128 effective June 30, a sweeping policy shift that would provide considerable financial relief to thousands of commuters. Under the proposed plan, taxpayers would assume the burden of running and maintaining the Massachusetts Turnpike from Weston to Springfield, and approximately 200 toll collectors would be laid off. At press time, political opponents of Lt. Gov. Kerry Healey decried the timing of the board’s vote, saying it was designed to give Healey a boost among a key bloc of voters. To abolish the western tolls and transfer that portion of the turnpike to MassHighway, the state will have to repay the authority’s remaining $199 million debt on the highway.
Economy Keeps Growing Despite Cooling Trend in Housing
WASHINGTON — The Federal Reserve’s latest survey of business conditions around the country found the economy expanding, with growth described as “moderate or mixed.” However, the report also found there was a distinct slowdown in housing, with the majority of the Fed’s 12 regions reporting lower asking prices for homes, a softening in sales, and rising inventories of unsold homes. In addition, the Fed noted that financial institutions were finding that mortgage lending activity had tapered off. That decline in lending was being offset slightly by an increase in lending for commercial projects in several districts, according to the Fed. The economy grew by 2.6% in the second quarter, less than half the pace of the first three months of the year, as it was battered by soaring gasoline prices, rising interest rates and the cooling housing market. The Fed also noted that manufacturing activity was holding up well, with eight of the 12 districts reporting an increase in factory output.
