Jun 30, 2009 11:07 pm US/Eastern
State Program Helps Businesses Ride Out Recession
BOSTON (WBZ) ―
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Some companies are taking advantage of a State program, which buys companies and more employees more time.
WBZ
The recession has hit all sectors of the economy, and all types of businesses are laying off employees.
However, there are some companies that have not laid off a single employee even though sales are way off.
These companies are taking advantage of a State program, which buys companies and more employees more time.
Saloom Furniture in Winchendon is turning out high end dining room sets. All 65 employees still have jobs despite an industry wide sales slump. That's because every one of them agreed to work four days instead of five. The state then approved all 65 of them for partial unemployment benefits to make up some of the lost wages.
PROGRAM LETS COMPANIES KEEP EMPLOYEES
It is called Work Share. Linda Saloom is the co-owner of the company.
"We didn't have to take our business apart, which I think we would have had to do," Saloom said. "By that I mean, all the people we trained; now you have to let them go."
What happened?
When the recession hit last fall, it hit Saloom Furniture hard. Business dropped by 35 percent almost over night, and the owners had to do something fast.
So among other things, hours were slashed by 20 percent, and Saloom applied and was accepted into the State's Work Share program. That means employees like Matt Kuchta make less money but now have every Friday off.
"I enjoy it. It's not a lay off. So you feel more secure that you have a job. Where so many people don't have a job. You can come back every Monday."
HOW IT WORKS
More then 450 companies in Massachusetts are now part of Work Share. Another 89 have applications pending. It is funded by a company's contributions to the state unemployment fund. It is not a long-term solution.
Suzanne Bump is the state's labor secretary.
"It's limited to 26 weeks but there is an ability to extend that. The idea is you want to make this available but you don't want it to become a permanent part of the business model."
Saloom employees have already been approved for a second set of benefits for another 26 weeks. They are all hoping for stronger furniture sales in the Fall when they unveil a new contemporary line.
Peter Saloom owns the business with his wife.
"We could hit the point where we are forced to make the kind of layoffs that we haven't made yet. We don't actually think that is going to happen because we have significantly more time."
Employees say they would welcome the chance to work 40 hours again someday soon. In the mean time, all 65 of them are just glad they are working.
Work Share is not unique to Massachusetts. Eighteen other states also offer the program for various periods of time.
(© MMIX, CBS Broadcasting Inc. All Rights Reserved.)
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