NTA PERSONNEL POLICY COMMITTEE MEETING/SEMINAR

"EMPLOYEE BENEFITS/RISK MANAGEMENT"

MARRIOTT HOTEL

BURLINGTON, MASSACHUSETTS

AUGUST 18, 1993

The Personnel Policy Committee of the Northern Textile Association met on Wednesday, August 18, 1993 at the Burlington Marriott Hotel, Burlington, Massachusetts. Present were Linda Swanson, American Fiber & Finishing, Inc., Lynette Parkinson, Charbert Fabrics, Alexis Paskevich, Dorr Woolen Company; Mickie Richardson, Homestead Industries, Inc.; Michael Schwotzer, Key Polymer Corp.; Dan Brown, L.W. Packard & Co., Inc.; Cathy Veinbachs, Malden Mills Industries, Inc.; Karen DeAngelis, Northern Textile Association; Rita McCauley, Warwick Management Inc. and Carol Clark, Warwick Mills, Inc.

I. "EMPLOYEE BENEFITS" by Arthur Warren, President, and Hal Tepfer, Vice President, Benefits Advisors of New England, Inc.

Messrs. Warren and Tepfer addressed the Committee with a slide presentation on Benefit Plan Design in the Current Political and Economic Environment. They discussed new tax implications, changes in benefit limits, types of Retirement/Profit-Sharing Plans and the costs and reform of Health Care Plans. They also addressed 401(k) Plan Investments and DOL Regulations.

Benefits Advisors of New England was recommended by a member of the Personnel Policy Committee. They provide a variety of employee benefit services including Pension, 401K and Profit Sharing Retirement Programs, Health and Welfare Plans, assistance in Investments of 401(K) Plans and compliance under new Department of Labor Regulations.

II. "RISK MANAGEMENT" by Bonnie Brook, President, Stephenson & Brook.

Ms. Brook addressed the Committee on how to aggressively manage workers compensation claims and save money on premiums.

She explained the method of how workers' compensation premiums are calculated through the MOD Experience Rating, audits and the Unit Stat Review. She highly recommended the Qualified Loss Management Program (QLMP) for Massachusetts companies in the Assigned Risk Pool which offers a 15% discount on workers' compensation premiums. She recommended three reference books to all employers, Workers' Compensation Law, The New Workers Compensation Law and Massachusetts Workers' Compensation Act.

Stephenson & Brook is highly recommended by one of the Committee members as providing reasonable services in controlling workers' compensation costs through aggressive management of claims.

Ms. DeAngelis thanked the speakers for their presentations. Members of the Committee agreed that the information given by each of the speakers was very useful and they inquired about their services.

An open discussion of personnel issues followed as Mr. Schwotzer informed members of a position statement which he received claiming that "..use of Back Belts can cause loss of abdominal muscle tone and increase the risk of back problems." Members asked Ms. DeAngelis to include a copy of the memo with the minutes to each attendee.

Ms. Veinbachs distributed copies of Malden's written policy on the Family and Medical Leave Act. She suggested calling the Department of Labor in Boston to obtain a posting of the Act.

Mr. Schwotzer mentioned the implementation of a Non-smoking Policy at his company and Ms. Richardson recommended calling the American Lung Association.

Mr. Brown mentioned continuous difficulties in hiring good employees and other members mentioned their experiences in hiring.

Business conditions were described by members as very busy with most companies continuing to hire. Ms. Paskevich mentioned the success of the new outlet store at Dorr. Ms. Richardson mentioned the new equipment at Homestead and recommended The Roundtable Group which assisted Homestead with a marketing analysis. Ms. Veinbachs updated members on Malden's 3-day shift in the apparel division. Mr. Brown mentioned the increased orders in cashmere and camel hair at L.W. Packard. He also recommended efforts toward flexible benefits and the success of the recent Employee Security Program which provides auto insurance savings with direct payroll deduction.

Members of the Committee mentioned the value of NTA's Personnel Policy Committee and the information shared at the meetings. They suggested to pool their efforts and each contact NTA members to encourage more involvement in the committee.

The next meeting of the Personnel Policy Committee was planned for November in Portsmouth, New Hampshire. Members suggested getting a speaker to address either COBRA, Section 125 or the Family and Medical Leave Act. Ms. DeAngelis asked members to contact NTA with any recommendations of speakers in these

areas.

Respectfully Submitted,

Karen DeAngelis