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SSO Labor Deal Strikes Right Chord

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Opinion

Editorial

 

Last week’s announcement of a new, two-year labor agreement between Springfield Symphony Orchestra and Local 171 of the American Federation of Musicians is, undoubtedly, good news. And the press conference at which it was announced, attended by SSO board members, union musicians, Springfield Mayor Domenic Sarno, and others, was all warmth — and a palpable sense of relief.

That’s because it ended an awkward period, starting during the pandemic and extending well beyond, in which an expired contract turned into a divorce of sorts, with the union musicians forming a separate organization, Musicians of the Springfield Symphony Orchestra (MOSSO), and scheduling smaller-scale concerts throughout the region.

As part of the agreement, MOSSO will live on as the renamed Springfield Chamber Players, ensuring that the SSO continues to produce full symphony concerts, while transitioning chamber concerts to the new entity.

So, maybe divorce is the wrong word. Maybe separation is more appropriate, because no one involved — not the SSO’s leadership, board, or the musicians themselves — thought a permanent dissolution was a good idea. That’s why the atmosphere at the May 4 announcement was so festive, and why SSO President and CEO Paul Lambert and Local 171 President Beth Welty repeatedly expressed their admiration for each other and for the way the other handled the long negotiation process — which, let’s not forget, included an unfair labor practice complaint by the musicians’ union registered with the National Labor Relations Board (which has, of course, been dropped).

So, labor peace has been achieved, and everyone’s ready to make beautiful music together.

For now.

As noted, the labor agreement — which guarantees musicians annual raises and a minimum of eight concerts per year — applies only to the next two seasons 2023-24 and 2024-25. The hope is that it will serve as a framework for future negotiations, because, again, no one wants the SSO imperiled.

After all, the Springfield Symphony is one part of a downtown renaissance in Springfield that relies on a number of drivers — from the Thunderbirds to MGM to the club district — as well as a plan for more housing and mixed-use development, to continue an era of revitalization. And the SSO is also a critical element in the arts and culture scene in Western Mass. as a whole, one of its more attractive tourism drivers and quality-of-life elements.

In addition to the agreement between the SSO and Local 171, the city of Springfield has pledged $280,000 over two years in financial support for SSO youth educational programming, underscoring the organization’s generational importance.

Now, it’s up to the business and philanthropic communities, as well as area residents, to support these performances and the SSO itself. But it’s also up to the organization and its musicians to guard against another messy separation — or worse.

Country Bank Announces Sponsorship Agreement with WooSox

By
Paul Scully Charles Steinberg
Banking and Financial Services

Play Ball

Paul Scully Charles Steinberg

Paul Scully (right) tours the under-construction Polar Park in Worcester with team President Charles Steinberg.

Baseball season is — hopefully — just four months away, and Paul Scully says that’s reason for excitement in Massachusetts.

“Just think about this year and the fact that so many of us have been inside, just looking for something to do,” said Scully, president and CEO of Country Bank, while talking about the bank’s ‘founding partner’ status with the Worcester Red Sox during a recent episode of BusinessTalk, the BusinessWest podcast.

“Just the prospect of having baseball back, right here within a quick drive for most of us … we’re very excited about it for the fans, for our customers, and for businesses throughout the area. It’s a great time.”

As one of 21 founding partners of the WooSox, who plan to begin play in Worcester’s brand-new Polar Park this spring, Country Bank’s multi-tiered sponsorship includes a large sign in right field atop the stands known as the Worcester Wall, along with the Country Bank Guest Services area located on the first-base concourse.

“We toured the park two weeks ago … and it really has some wonderful attributes that represent the Central Mass. area. It’s different from Fenway, but there are some similarities,” Scully said, noting that the high Worcester Wall is in right field, and will be colored blue, as opposed to the left-field Green Monster in Fenway.

Meanwhile, the Country Bank Guest Services area is a place where fans can come for help with any number of issues, from missing keys to missing kids, he noted — a way for the bank to extend its customer-service philosophy to this new partnership.

Speaking of partnerships, the bank and the WooSox Foundation will work together on a number of charitable efforts, from a Teacher of the Month recognition program to a combined charitable-giving campaign throughout the baseball season.

“We have been impressed and inspired by Country Bank’s sense of community involvement,” WooSox President Charles Steinberg said. “We see how helpful they are to various institutions and thousands of people in our region, and we welcome them to Polar Park with open arms as we work together to enhance the quality of life in our community even more.”

To kick off their partnership last month, a team from Country Bank and the WooSox mascot, Smiley Ball, delivered 500 Thanksgiving meals prepared by Old Sturbridge Village along with apple pies from Worcester-based Table Talk to the St. John’s Food Pantry for the Poor.

“Just the prospect of having baseball back, right here within a quick drive for most of us … we’re very excited about it for the fans, for our customers, and for businesses throughout the area. It’s a great time.”

“The alignment of our organizational values with the WooSox solidifies our commitment to service and teamwork as we continually strive for excellence in all we do,” Scully said.

He noted that, at a time when spectator sports continue to be redefined by new norms of social distancing, sports sponsorships are taking on new forms, extending beyond the stadium walls to make a real impact in the community. But he knows fans want to have a good time, too.

“We couldn’t be more excited to be a part of the WooSox and the Worcester community,” he said. “The addition of year-round entertainment, including ballgames, concerts, and various family activities at Polar Park, is exciting for the people and businesses in the region. We all look forward to the day when we can come together again at the ballpark, enjoying activities with our families and friends. We also look forward to seeing our businesses thrive once again after being heavily impacted by the pandemic.”

Scully knows, of course, that the pandemic is far from over, and the baseball season may or may not start on time in April. But he also senses a regional fan base that will enthusiastically support another professional sports franchise in this region, especially one with the cachet of the Boston Red Sox’ Triple-A affiliate.

“They’re part of the Central Mass. community now, and we’re excited for them, and we’re excited for us,” he told BusinessWest. “But, more importantly, we’re just excited for the fans.”

 

—Joseph Bednar

Time to Pass USMCA Trade Agreement

By
Opinion

Opinion

By Kristen Rupert

Associated Industries of Massachusetts (AIM) and its 3,500 members urge the U.S. Congress to approve the new USMCA trade agreement with Canada and Mexico.

The reason is simple — Canada and Mexico purchase more U.S.-made goods than the next 11 trading partner countries combined. USMCA will help to preserve more than 2 million American manufacturing jobs — at least 15,000 of them in Massachusetts — that rely on trade with Canada and Mexico.

Time is short for Congress to act. The U.S. House and Senate need to pass the USMCA before the year’s end.

House Speaker Nancy Pelosi has said Democrats have inched closer to supporting the deal. They have worked to iron out lingering concerns in weeks of talks with the Office of the U.S. Trade Representative.

The USMCA was negotiated by the Trump administration to replace the North American Free Trade Agreement (NAFTA). USMCA strengthens and modernizes intellectual-property rules, sets new digital-economy standards, expands U.S. manufacturers’ access to Canada and Mexico, ensures that U.S. companies can sell their products duty-free into these markets, eliminates red tape at the border, and levels the playing field by raising standards, prohibiting anti-U.S. discrimination, and strengthening enforcement.

AIM is in contact with the Massachusetts delegation in Congress to encourage them to pass the USMCA. Gov. Charlie Baker calls the agreement “strong, fair and flexible.” Among the many products that are traded between Massachusetts and Canada and Mexico are auto parts, medical devices, lab instruments, semiconductors, paper products, and aerospace parts. Most of the manufacturing exports from Massachusetts going to Canada and Mexico are produced by small and medium-sized businesses.

AIM urges employers to contact their members of Congress to emphasize how important the USMCA is to manufacturing companies in Massachusetts. Industry associations, individual companies, and elected officials across the U.S. encourage an immediate vote on USMCA.

Kristen Rupert is senior vice president of External Affairs at Associated Industries of Massachusetts and director of AIM’s International Business Council.

bankHometown, Millbury Savings Bank to Merge

By
Matthew Sosik
Banking and Financial Services

Merging Banks

Matthew Sosik

Matthew Sosik

Matthew Sosik, president and CEO of bankHometown, and Robert Morton, President and CEO of Millbury Savings Bank, recently announced that the banks have signed an agreement to merge operations under the bankHometown name.

The combined bank will have approximately $1 billion in assets and 15 branch offices located throughout Central Mass. and Northeastern Connecticut.

“We’re excited to welcome Millbury Savings Bank’s customers, employees, and communities to the bankHometown family,” Sosik said. “This merger will expand our presence into the Worcester and Millbury markets and will add a team of talented bankers to bankHometown.”

Morton agreed. “Merging with bankHometown allows us to provide our customers with increased lending capacity, an extended branch and ATM network, and an expanded offering of products and services,” he said. “At the same time, and even more importantly, our customers will see the same familiar faces every day.”

There will be no staff reductions or branch closures resulting from the merger. The impact to customers is expected to be minimal as both banks share the same core processor.

“Banks under our Hometown Financial Group umbrella benefit from access to highly skilled executives and support teams.”

After the closing, Morton will lead the combined bank as its president and CEO. In addition, Morton and five members of the Millbury Savings Bank board of trustees will join the bankHometown board of directors.

bankHometown is a wholly owned subsidiary of Hometown Financial Group. Morton and one other Millbury Savings Bank board member will join the Hometown Financial Group board of directors. bankHometown will remain headquartered in Oxford. As part of the Hometown Financial Group family of banks, which includes bankESB, bankHometown, and Pilgrim Bank, the combined bank will benefit from the shared resources of a larger institution while operating independently in its own market area.

“We have a proven track record of success with our operating model,” Sosik said. “Banks under our Hometown Financial Group umbrella benefit from access to highly skilled executives and support teams. This allows the bankers at each of our subsidiary banks to focus their efforts on growing market share and providing best-in-class banking products, services, and solutions to customers.”

Following the merger with Millbury Savings Bank, Hometown Financial Group will have approximately $3 billion in consolidated assets and 32 branch offices operating across Massachusetts and Northeastern Connecticut. Following the merger, Sosik will continue in his role as president and CEO of both bankESB and Hometown Financial Group.

The merger agreement has been unanimously approved by the boards of bankHometown and Millbury Savings Bank. The transaction is expected to close in the fourth quarter of 2019, subject to the receipt of required regulatory approvals and other customary closing conditions. Customer deposits will continue to be fully insured through the Federal Deposit Insurance Corp. (FDIC) and the Share Insurance Fund (SIF).

The merger with Millbury Savings Bank will mark the third transaction that will close in 2019 for Hometown Financial Group. On Jan. 31, the company closed on its acquisition of Pilgrim Bancshares Inc. This was followed by the announcement on Feb. 6 of the merger of Abington Bank and Pilgrim Bank. The closing of that transaction is expected in the second quarter of 2019 and will result in the formation of a $600 million bank with six branches operating in the Eastern Mass. region.

Legislature Passes Bill Restricting Non-compete Agreements

By
Employment

Language Course

 By Timothy M. Netkovick, Esq.

Big changes may be on the horizon regarding non-competition agreements. For the first time, there may be legal restrictions on the terms of those agreements, and, in a major development, employers may be required to pay former employees during the non-compete period.

This is the result of a bill passed by the Massachusetts state legislature that, if signed by Gov. Baker, will mandate the timing of non-competition agreements, the employees who can enter into those agreements, and certain language within the agreement.

Timothy M. Netkovick, Esq

Timothy M. Netkovick, Esq

Employers use non-competition agreements in order to protect their business interest in the event an employee leaves the company and begins to work for a competitor. In that scenario, the now former employee could be motivated to entice clients to their new place of business or to use confidential information of the former employer for the benefit of a competitor.

Historically, there has been little restriction on the contents of a non-competition agreement other than what terms would be enforced by a court in the event of a dispute. However, that may be about to change. If signed by Gov. Baker, the bill states that a non-competition agreement will need to include:

• A reasonable geographic reach in relation to the interest sought to be protected;

• A reasonable scope of the activities prevented;

• That the agreement be supported by a garden-leave clause (more on that later); and

• That the agreement comply with public policy.

The new bill is the result of the Legislature’s perception that non-competition agreements have become overused in the Commonwealth. As such, the bill requires that certain steps be taken at each stage of the employment process. At the outset, the bill mandates that non-competition agreements are unenforceable against:

• Nonexempt employees under the Fair Labor Standards Act (hourly workers);

• Interns;

• Employees terminated without cause or due to layoff; and

• Employees under 18 years old.

In a typical scenario, non-competition agreements are entered into at the beginning of the employment relationship, and can be included as part of the employee’s ‘on boarding’ documents, along with a copy of the Employee Handbook and other standard documents.

The Legislature’s apparent concern is that an employee could sign a non-competition agreement without understanding what they are signing.

In order to protect employees, the bill requires that a non-competition agreement must be entered into by the earlier of a formal offer of employment or 10 business days before the start of employment. In addition, the agreement must be signed by both the employer and the employee and, further, must include a statement that the employee has the right to consult with counsel of their choosing prior to entering into the agreement. In effect, this makes a non-competition agreement the subject of a separate negotiation well prior to the first day of employment.

In the event the agreement is entered into after employment has started, the bill requires that there be a 10-day waiting period before the agreement becomes effective, and that it include the same statement that the employee has the right to consult with counsel of their choosing prior to entering into the agreement.

The bill further requires that “fair and reasonable consideration” be exchanged in order to support the agreement. The bill doesn’t state what “fair and reasonable consideration” is, however, it specifically states that “fair and reasonable consideration” must be more than just the employee’s continued employment.

Since there is no definition of “fair and reasonable consideration,” there can be a variety of potential interpretations as to what that phrase means. Could it be a raise for the employee to support the agreement? A bonus? Unfortunately, the legislation is silent. However, it is clear from the overall text of the legislation that the intent is for more than just nominal consideration, i.e. $1.00.

For the most part, once the agreement is signed, the bill adapts the standards typically used by Massachusetts courts in enforcing non-competition agreements in terms of duration and scope. For instance, Massachusetts courts have typically held that non-competition agreements are enforceable so long as they are reasonable in time and scope.

Courts have also typically interpreted non-competition agreements narrowly in terms of enforcing the agreement for a short period of time and limited to the areas where the employee actually performed services for the former employer. In addition, several professions are exempt from non-competition agreements due to public policy reasons, such as doctors and lawyers.

The major potential change is the requirement for employers to pay their former employees during the non-compete period. Under the bill, the agreement must be supported by a “garden leave clause” or other mutually agreed upon consideration. The bill defines a “garden leave clause” as 50% of the employee’s highest annualized salary within the two years preceding termination. In effect, employers will be required to pay the former employee not to work during the non-compete period.

In addition to the other provisions put in place, it seems that the Legislature’s goal is to provide an additional disincentive for an employer to enter into a noncompetition agreement unless the employer views it as absolutely necessary for a legitimate business interest. Given the other restrictions in terms of the category of employees specifically excluded from entering into non-competition agreements, it’s clear that the Legislature intends for non-competition agreements to apply to only executive or upper level management.

If enacted, these new requirements will require employers to review and modify their existing non-competition agreements. Employers will want to monitor the situation and consult their employment counsel regarding any revisions that may be necessary before they seek to enter into new agreements, or run the risk that those agreements will be unenforceable when the employer needs them the most.

Timothy M. Netkovick, an attorney at Royal, P.C., has 15 years of litigation experience. He has successfully tried several cases to verdict. In addition to his trial experience, he has specific experience in handling labor and employment matters before a variety of administrative agencies including the Mass. Commission Against Discrimination, Equal Employment Opportunity Commission, National Labor Relations Board, and Department of Industrial Accidents. He also assists employers with unionized workforces during collective bargaining, at arbitrations, and with respect to employee grievances and unfair labor practice charges; (413) 586-2288.

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