The Boston Globe - 13.09.2019

(Steven Felgate) #1

B8 Business The Boston Globe FRIDAY, SEPTEMBER 13, 2019


John Ingalls has
seen business
grow each year at
Palmers Restau-
rant in Andover,
for the 31 years
he has owned it.
Every year — ex-
cept this one.
Ingalls just went through his
toughest August in two decades,
with revenue down 15 percent
from the same time last summer.
The reason? Ingalls chalks it up to
the gas fires and explosions that
rocked Andover, North Andover,
and Lawrence one year ago. Cus-
tomers went elsewhere during the
two months that Palmers was
closed, and he fears many never
returned.
Twelve months have passed
since an overpressurized gas line
on Columbia Gas’s system
wreaked havoc in the three Merri-
mack Valley communities, and the
local business community is still
putting the pieces back together.
More than 800 businesses were af-
fected. Many are back to normal,


finally. But Ingalls isn’t alone: A
survey two months ago by busi-
ness development nonprofit
EforAll showed as much as 30 per-
cent, or more than 200 business-
es, still have not fully recovered.
Recovery efforts continue, in
formal and less formal ways. The
official promotional efforts,
dubbed “Rock the Register,” are
funded by $10 million from Co-
lumbia Gas, a cash contribution
now in the hands of the Essex
County Community Foundation
and partly overseen by the Law-
rence Partnership. About $3 mil-

lion has been spent so far, on ef-
forts ranging from direct grants to
workshopstothemarketingcam-
paign.
Next up: A $240,000 effort
launching this week to get $30 gift
cards in the hands of the some
8,000 households that lost gas a
year ago. The credits will be good
at 140 or so businesses that were
disrupted by the explosions, a
number that could still grow. If it
works, more cards could go out, to
more homes in the area.
Other efforts are sprouting up.
Businesses in Lawrence are back-
ing a “Community Spirit” event at
Stadium Plaza on Saturday, for ex-
ample, and Ingalls just joined
with other restaurateurs to start
planning a local “restaurant week”
for February or March.
The explosions on Sept. 13,
2018, killed an 18-year-old, in-
jured more than two dozen other
people, and wrecked numerous
buildings. For businesses, the
damage was only just beginning.
As crews raced to repair and re-
place nearly 50 miles of gas lines,
many establishments waited two
to three months for gas to be re-
stored as the cold weather arrived.
Some were closed for a few days;

others for a few months. The ex-
plosions displaced thousands of
potential customers, and the en-
suing roadwork and other con-
struction created barricades as
merchants waited for folks to
come through their doors.
Columbia Gas has reimbursed
many businesses for lost time, and
to replace potentially compro-
mised cooking and heating equip-
ment. (Restaurants were particu-
larly hard hit.) The utility has re-
solved thousands of claims,
totaling more than $111 million,
but does not break out how many
were filed by businesses, as op-
posed to individuals.
Many small-business owners
still face shortfalls that are tough
to measure. Case in point: Sales
have slowed down at Moderno
Appliance & Furniture compared
to a year ago. The explosions hap-
pened at a tough time for co-own-
er Suzanne Carey-Fernandez; the
store was still trying to establish
itself in a new location, Stadium
Plaza in Lawrence, about a year
after moving in. Utility contrac-
tors set up shop in front of the
store for months, using the plaza
as a staging area. A few plaza busi-
nesses closed for good. So she got

the ball rolling for the Community
Spirit event on Saturday.
As the recovery continues,
these entrepreneurs see a silver
lining: a renewed sense of com-
munity. Rival banks joined togeth-
er to offer bridge loans, to help
keep businesses open until the
utility claims came through. The
Merrimack Valley Chamber of
Commerce is steering some events
to disrupted businesses. Business
owners got to know many of their
municipal officials for the first
time.
TheOak&IronBrewingCo.
needed gas to brew beer, but it
found a way to keep the suds flow-
ing once its inventory ran out.
Owner Jim Cass turned to the
Massachusetts Brewers Guild for
help; RiverWalk Brewing in New-
buryport pitched in by making
Oak & Iron’s two top selling beers
until service was restored at the
Andover brewery in late Novem-
ber.
Sometimes, disasters can bring
out the worst in people. More of-
ten, they bring out the best.

Jon Chesto can be reached at
[email protected]. Follow him
on Twitter @jonchesto.

Business recovery continues in Merrimack Valley


The Rock the
Register
campaign is
funded by $
million from
Columbia Gas.

JESSICA RINALDI/GLOBE STAFF/FILE

Jon Chesto


CHESTO MEANS BUSINESS

By Katie Johnston
GLOBE STAFF
Uber drivers in Massachusetts
and California have filed a new
round of class-action lawsuits
against Uber Technologies Inc.,
based on a federal appeals court
ruling Wednesday that may allow
Uber drivers not to be bound by
arbitration agreements and on
new California legislation that
creates a strict definition for clas-
sifying workers as employees.
The changes give Uber drivers
more leverage to challenge their
status as independent contrac-
tors.
In the appeals court case, a
unanimous three-judge panel in a
New Jersey case said that the Fed-
eral Arbitration Act — which ex-
empts interstate railroad workers
and seamen from arbitration
agreements — may also apply to
Uber drivers. That means Uber
drivers who signed arbitration
agreements that blocked them
from joining lawsuits can now sue
over minimum wages and over-
time pay.


The California legislation, ex-
pected to be signed by the gover-
nor, stating that workers whose
tasks are directed by the company
and who perform jobs that are
part of the company’s regular
course of business are considered
employees, not contractors.
Massachusetts has a similar
law.
Uber said that the California
law would not apply to it, as it has
said about the Massachusetts law,
because the company’s main busi-
ness is technology, not driving
passengers. The company did not
respond to a request for comment
about the lawsuits.
Earlier this year, Uber reached
a $20 million settlement with
drivers in Massachusetts and Cali-
fornia who had opted out of
Uber’s arbitration clause. The case
originally involved as many as
385,000 drivers but was reduced
to a class of about 13,600 after
Uber’s arbitration agreements
were ruled enforceable.
The drivers in the new cases,
filed Wednesday in US District

Court in San Francisco and Thurs-
day in Boston, are represented by
Shannon Liss-Riordan, the attor-
ney who filed the previous Uber
misclassification complaints.
Liss-Riordan has brought a
number of misclassification cases
against Lyft, Grubhub, DoorDash,
and other so-called gig economy
companies that have also been
bogged down by arbitration agree-
ments. But in suits involving Ama-
zon Flex drivers in Massachusetts
and in a national case filed in Se-
attle, the courts ruled that drivers
weren’t bound by the arbitration
agreement in their contract be-
cause, as in the Uber federal ap-
peals court ruling, they fall under
the transportation workers’ ex-
emption to the Federal Arbitra-
tion Act.
Liss-Riordan is also seeking an
injunction to order Uber to com-
ply with state laws.
“I’ve got clients who are sleep-
ing in their cars because they’re
driving 70, 80 hours a week and
they’re not making minimum
wage,” said Liss-Riordan, who is

challenging US Senator Ed Mar-
key in next year’s Democratic pri-
mary.
“I care about working people
being trampled on by large corpo-
rations who think they are above
the law. Corporations in America
today think that they can write all
the rules and ignore the working
people who make their business
possible.”
John Capriole, a Haverhill resi-
dent who is lead plaintiff in the
Massachusetts complaint, has to
cover his own expenses and is not
guaranteed minimum wage be-
cause he is not considered an
Uber employee, according to the
court filing. He has never been
paid overtime when he worked
more than 40 hours a week.
But Uber is clearly his employ-
er, the complaint states, because it
sets his rate of pay, controls the
riders he transports, and can ter-
minate him at any time. “Without
drivers to provide rides for Uber’s
customers, Uber would not exist,”
the suit says.
The new California measure

could be an “inflection point” in
the growing controversy over the
rights of gig-economy workers,
said David Weil, dean of the Heller
School for Social Policy and Man-
agement at Brandeis University
and former head of the Wage and
Hour Division at the US Depart-
ment of Labor under President
Obama. The federal appeals
court’s arbitration ruling could al-
so breathe new life into lawsuits
against these companies, he said.
The growing number of online
platforms in the business of deliv-
ering food and packages automat-
ically assume their workers are in-
dependent contractors, Weil said,
and this generally means lower
wages and fewer job protections.
“We’re unwinding the retail
sector with this model,” he said.
“That, to me, is unfortunately
doubling down on the erosion and
doubling down on some of the fac-
tors that are leading to greater
earnings inequality.”

Katie Johnston can be reached at
[email protected].

Mass.driversareagaintakingonUberoverworkstatus


Lawyer
Shannon Liss-
Riordan is
representing
Uber drivers in
Massachusetts;
she’s also a
candidate for
US Senate who
is challenging
incumbent
Senator Ed
Markey in next
year’s
Democratic
primary.

ket has always closed on Sundays
because of a promise they made
their mother to keep the day for
their home life.
But the shoppers were family,
too, and longtime customers
were not reassured to learn that
another market might be coming.
“This is a disaster,” lament-
ed Philip Kistler, who wore
a Fresh Pond Market baseball cap.
He has shopped here for 50 years,
he said, and frequents Fresh Pond
Market despite living in Belmont.
“I don’t care if I lived in Lexing-
ton, or Brookline, it doesn’t mat-
ter,” he said “It’s the best. Would
you rather mosey around Star?
Come on.”
“Star is a four-letter word,”
Marc joked about the far-bigger
grocery chain. (This was in jest:
Back in Armenia, Marc’s grandfa-
ther was the landlord to Sarkis
Mugar, Star Market’s founder.
When both started out in the gro-
cery business in the United States
they often bought at the same
wholesale markets, and Nish Se-
monian became close friends with
Sarkis’s son.)
He said he had mixed feelings
about closing the business. It has
been “100 percent consistent,” de-
spite changes in the industry. But
it was time.
Crosby concurred.
“Amazon doesn’t really affect
us. You’ve got one of the biggest
Star Market and Whole Foods
down the road, and Trader Joe’s
right there,” he said. “But they all
still like coming to Fresh Pond
Market. It must be my good looks,
huh?”
The brothers have worked in
tandem for six decades, often for
60 or 70 hours a week. Marc, the
general manager, handles the


uMARKET
Continued from Page B


front of the house, kibitzing with
customers and ordering the wine,
while Crosby works in the back,
butchering in his whites.
They’ve made some changes
over time: There are more pre-
pared foods. Cauliflower crackers
and gluten-free organic pasta are
stocked alongside the Ritz boxes
and jars of Ragu. They’ve upgrad-
ed the meat department with
more high-end cuts. They used to
sell fish only on Fridays, but now
daily fish sales are booming.
The pair said their parents and
grandparents instilled a commit-
ment to service in them that has
kept the business successful all
these years.
“My mother always said to
treat the customers like company
coming into your house,” Marc
said.
Nobody was ready to say good-
bye to the brothers Najarian;
many said they planned to come
in all week. But they probably
would have anyway.
“People come here for the food,
but this is the village general
store; it was the antidote to ‘Bowl-
ing Alone,’ ” said Paul Buttenwies-
er,alocalpsychiatrist,author,and
philanthropist. “We’re all in
mourning.”
The brothers said they didn’t
want to hand off the store to the
next generation, because they
wanted an easier life for their
kids.
Crosby’s son, Jonathan Najari-
an, an English professor at Boston
University (and an excellent meat
cutter, his dad said), came by the
store that afternoon to take in the
scene. He slid in behind the regis-
ter to check out customers with-
out thinking.
“It’s very strange,” he said. “I
told them a while ago, I said,
‘Before you guys do anything

come talk to me.’ But they didn’t
want me to.”
“I don’t want you working like
this,” Crosby said.
Some customers worried that
Formaggio’s higher-end fare
might push out everyday
items. But the brothers were opti-

mistic about the new ownership.
“It will be good for the neigh-
borhood,” Marc said. “We didn’t
want to put a CVS or a national
chain in here. We wanted to have
a local store.”
Neighbors are planning a party
for the owners this weekend. They

left a guest book for customers to
share their memories. By 3 p.m.
on Monday, more than 30 pages
had been filled with anecdotes:
tales of dragging groceries home
by sled during the Blizzard
of ’78, Leo’s generosity when pay-
checks were tight, Christmas din-
ners with Crosby’s tenderloins.
“FPM has anchored a commu-
nity for generations,” one patron
wrote.
“You and Crosby and the whole
FPM family and crew have been
excellent stewards of a way of life.
A better way whose spirit must be
preserved.”
But a child named Toby, using
wobbly penmanship and pink
highlighter, may have put it best:
“This place wuz good.”

Janelle Nanos can be reached
at [email protected].
Follow her on Twitter
@janellenanos.

Iconic Cambridge


market’s closing up


Customer Judy
Ellenzweig
waved as she
left Fresh Pond
Market on
Tuesday; inside
the store, a
wedding photo
of Peggy and
Leo Najarian
rested on the
butcher
counter. The
shop is now
run by their
children, Marc
and Crosby
Najarian, who
have decided to
close up this
weekend.

CRAIG F. WALKER/GLOBE STAFF
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